HTSC·2024-10-20 01:03Investment Rating - The investment rating for the company is "Buy" (maintained) [2][3] Core Views - The company has demonstrated strong earnings realization capabilities and is actively expanding its resources [3] - The company is expected to achieve its annual production targets despite some delays in project timelines due to regulatory issues and low lithium prices [5][6] - The target prices are set at HKD 19.01 and RMB 19.67, reflecting an upward adjustment based on the anticipated rise in copper and gold prices [7] Financial Performance Summary - For Q3 2024, the company reported revenues of RMB 799.80 billion, a year-on-year increase of 7.11% and a quarter-on-quarter increase of 5.74% [3] - The net profit attributable to the parent company for Q3 2024 was RMB 92.73 billion, up 58.17% year-on-year and 5.09% quarter-on-quarter [3] - Cumulative revenue for the first three quarters of 2024 reached RMB 2,303.96 billion, a year-on-year increase of 2.39%, with net profit attributable to the parent company at RMB 243.57 billion, up 50.68% year-on-year [3] Production and Cost Management - The company achieved copper and gold production of 270,000 tons and 18.9 tons in Q3 2024, with a quarter-on-quarter increase of 5.7% and 1.4% respectively [5] - The company is expected to meet its annual production targets of 1.11 million tons of copper and 73.5 tons of gold [5] - Cost management remains stable, with expectations to meet annual cost targets despite fluctuations in commodity prices [4] Valuation Metrics - The projected earnings per share (EPS) for 2024, 2025, and 2026 are RMB 1.29, RMB 1.42, and RMB 1.58 respectively [2][7] - The company’s price-to-earnings (PE) ratio is projected to decrease from 13.68 in 2024 to 11.17 in 2026, indicating improving valuation [2][7] - The return on equity (ROE) is expected to be 27.82% in 2024, reflecting strong profitability [2][7]