Sinomine(SZ:002738) KAIYUAN SECURITIES·2024-10-31 06:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Views - The lithium sector has reached a bottom, and the company is expanding its layout in copper, which presents new profit growth points [3] - In the first three quarters of 2024, the company achieved operating revenue of 3.569 billion yuan, a year-on-year decrease of 28.69%, and a net profit attributable to the parent company of 546 million yuan, down 73.64% year-on-year [3] - The average price of lithium carbonate in Q3 2024 was approximately 80,000 yuan per ton, reflecting a year-on-year decline of 67% and a quarter-on-quarter decline of 24% [4] - The company has completed the acquisition of the Kitumba copper mine and holds a 65% stake, as well as a 98% stake in the Tsumeb smelter, which will enhance its resource value [6] Financial Performance Summary - For Q3 2024, the company reported operating revenue of 1.148 billion yuan, a year-on-year decrease of 18.25% and a quarter-on-quarter decrease of 11.39%, with a net profit of 73 million yuan, down 87.18% year-on-year and 66.44% quarter-on-quarter [3] - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 699 million yuan, 1.107 billion yuan, and 1.8 billion yuan respectively, with corresponding EPS of 0.96 yuan, 1.52 yuan, and 2.47 yuan [3] - The gross profit margin for the refined salt segment increased by 8 percentage points year-on-year, providing stable cash flow for the company [5] - The company’s financial expenses rose significantly in Q3 2024, amounting to 88 million yuan, a quarter-on-quarter increase of 262.4% due to the impact of the US dollar exchange rate [4]