Tai Ping Yang·2024-09-25 08:03Investment Rating - The report maintains a "Buy" rating for Zijin Mining [1][2]. Core Insights - The company has demonstrated significant cost reduction and incremental growth, which supports long-term high-quality development [1][2]. - In H1 2024, the company achieved a revenue of 1504.2 billion yuan, a slight increase of 0.1% year-on-year, and a net profit attributable to shareholders of 150.8 billion yuan, up 46.4% year-on-year [10][12]. - The company has a strong exploration advantage with abundant resources on hand, and it has effectively controlled production costs and expenses [2][4]. Summary by Sections Performance Overview - In H1 2024, the company achieved copper production of 51.9 million tons, a year-on-year increase of 5.3%, and gold production of 35.4 tons, up 9.5% year-on-year [16][30]. - The company’s zinc (lead) production was 22.2 million tons, down 7.6% year-on-year, while silver production was 210.3 tons, up 1.3% year-on-year [16][38]. Cost and Profitability Analysis - The company has effectively reduced production costs, with significant improvements in gross margins for gold and copper production [8][19]. - The gross profit margin for H1 2024 was reported at 19%, with a net profit margin of 10% [12][19]. Financial Metrics - The company’s total liabilities to assets ratio decreased to 56.7% by the end of H1 2024, down 2.3 percentage points year-on-year [2][4]. - The forecast for net profit attributable to shareholders for 2024-2026 is 314 billion, 360 billion, and 410 billion yuan respectively [2][3].