Kings(603505) 申万宏源·2024-09-25 06:08Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a positive outlook on its future performance [3][6]. Core Views - The company is positioned as a leading player in the fluorite industry, leveraging technology to enhance resource utilization and drive innovation. It has a strong competitive edge due to its extensive experience and technical expertise in mining [3][16]. - The fluorite market is experiencing a supply-demand mismatch, with expectations of price increases driven by tightening supply and growing demand from the new energy sector. The company is well-positioned to benefit from these trends [4][6]. - The report forecasts a significant increase in the company's net profit over the next three years, with a compound annual growth rate (CAGR) of 35% [6][27]. Summary by Sections Company Overview - The company, Jinshi Resources, is the only publicly listed entity in China focused on fluorite, with the largest resource reserves and production capacity in the industry. It has transitioned from traditional mining to a technology-driven model, enhancing its operational efficiency [16][22]. Market Analysis - The fluorite supply is tightening due to resource depletion and stricter regulations, while demand is expected to grow at a compound annual growth rate of over 5% driven by the new energy sector [4][6]. - The company has a first-mover advantage in the fluorite market, with significant potential for future growth as it expands its operations and integrates new technologies [4][6]. Financial Projections - The report projects the company's net profit for 2024-2026 to be 4.30 billion, 6.46 billion, and 8.64 billion yuan, respectively, with corresponding earnings per share (EPS) of 0.71, 1.07, and 1.43 yuan [6][27]. - The company's price-to-earnings (PE) ratio is expected to be 36x in 2024, reflecting a premium valuation compared to peers [6][27]. Competitive Advantages - The company has developed a unique business model that combines technology with resource extraction, allowing it to operate with a lighter asset structure while maximizing profitability [4][6]. - The management team has a strong technical background, which is crucial for driving innovation and maintaining competitive advantages in the industry [19][20]. Investment Thesis - The report emphasizes the potential for the company's fluorite prices to rise, which would significantly enhance profitability. The ongoing development of new projects and the replication of its successful business model in other areas are expected to unlock further growth opportunities [4][6][25].