Sinomine(SZ:002738) Soochow Securities·2024-11-01 11:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - Q3 performance was below expectations, with revenue of 3.6 billion yuan for the first three quarters of 2024, down 29% year-on-year, and a net profit attributable to shareholders of 550 million yuan, down 74% year-on-year [2] - Lithium salt sales in Q3 increased by 26% quarter-on-quarter, with annual sales expected to reach 40,000 to 50,000 tons, representing a year-on-year increase of 140% to 200% [2][3] - Significant cost reduction in lithium mining, with the production cost per ton dropping from 53,000 yuan in Q2 to below 50,000 yuan in Q3 [3] - The company anticipates stable profits from cesium and rubidium, with copper business expected to become a future growth point [3] Financial Performance Summary - For 2024, the company expects a net profit attributable to shareholders of 700 million yuan, down 68% year-on-year, with a projected P/E ratio of 35x [4] - The operating cash flow for the first three quarters of 2024 was -170 million yuan, a decrease of 106% year-on-year [4] - Capital expenditures for the first three quarters of 2024 were 580 million yuan, down 60% year-on-year [4] Revenue and Profit Forecast - The company forecasts total revenue of 5.28 billion yuan for 2024, down 12.2% year-on-year, with a projected net profit of 1.58 billion yuan by 2026, reflecting a year-on-year growth of 56.99% [1][4]