JCHX(603979) 光大证券·2024-11-07 04:10Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 43.12 CNY per share [6]. Core Views - The mining service sector shows stable growth, while the resource sector has experienced rapid growth, contributing significantly to the company's performance [2][3]. - The company achieved total operating revenue of 6.971 billion CNY in the first three quarters of 2024, a year-on-year increase of 31.23%, and a net profit attributable to shareholders of 1.093 billion CNY, up 53.96% year-on-year [2]. - The Lonshi copper mine is expected to reach full production by the end of 2024, with plans to produce 20,000 tons of copper metal and sell 22,000 tons [4]. Summary by Sections Financial Performance - In Q3 2024, the company reported total operating revenue of 2.698 billion CNY, a 32.73% increase year-on-year, and a net profit of 480 million CNY, up 56.14% year-on-year [2]. - The mining service sector's revenue for the first three quarters was 4.878 billion CNY, a slight increase of 3.04% year-on-year, while the resource sector's revenue surged to 1.975 billion CNY, a remarkable increase of 343.56% year-on-year [3]. Profitability - The gross profit margin for the mining service sector was 28.49%, while the resource sector achieved a gross profit margin of 44.25% [3]. - The company forecasts net profits of 1.49 billion CNY, 2.1 billion CNY, and 2.336 billion CNY for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 18X, 13X, and 12X [4]. Market Outlook - The report anticipates continued upward pressure on copper prices due to tightening supply and improving demand in Q4 2024 [4]. - The acquisition of an 80% stake in the Lubambe copper mine has been completed, which will contribute to the company's resource production starting from July 2024 [4].