Hainan Mining(SH:601969) Guotou Securities·2024-11-06 05:23Investment Rating - The report maintains an "Add-A" rating for the company with a 6-month target price of 7.80 CNY, corresponding to a dynamic PE of 23 times for 2024 [3][21]. Core Views - The company reported a revenue of 3.172 billion CNY for the first three quarters of 2024, a year-on-year decrease of 14.29%, while the net profit attributable to shareholders was 546 million CNY, an increase of 13.81% year-on-year [13]. - The oil and gas production is on the rise, with Q3 2024 equity production and sales volumes increasing by 20.66% and 21.84% year-on-year, respectively, while iron ore production faced challenges due to weather conditions [14]. - The company is advancing its acquisition of the Oman oil field and is nearing production for its lithium hydroxide project, with the Bougouni lithium mine expected to commence operations in early 2025 [15][16]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 985 million CNY, down 24.21% year-on-year and 8.5% quarter-on-quarter, with a net profit of 144 million CNY, down 19.15% year-on-year and 7.54% quarter-on-quarter [13]. - The average price of Brent crude oil was 78.71 USD per barrel, a decrease of 8.2% year-on-year, while the average price index for 62% iron ore was 99.69 USD per ton, down 12.6% year-on-year [14]. - The company expects revenues of 4.566 billion CNY, 6.577 billion CNY, and 6.934 billion CNY for 2024, 2025, and 2026, respectively, with net profits projected at 682.9 million CNY, 826.8 million CNY, and 858.5 million CNY for the same years [21][22].