XTC(SH:600549) Changjiang Securities·2024-11-18 02:34Investment Rating - The investment rating for Xiamen Tungsten Co., Ltd. is "Buy" and is maintained [5]. Core Views - The report highlights that tungsten prices have retreated from high levels, leading to a sequential decline in profits for the tungsten and molybdenum segment. The company reported Q3 2024 revenue of 9.207 billion yuan, a year-on-year decrease of 14.73% but a quarter-on-quarter increase of 3.55%. The net profit attributable to shareholders was 386 million yuan, a year-on-year increase of 4.32% but a quarter-on-quarter decrease of 34.56% [5][6]. Summary by Sections Tungsten and Molybdenum Segment - In Q3 2024, the tungsten and molybdenum segment achieved revenue of 4.468 billion yuan, a quarter-on-quarter decrease of 6%. The total profit for this segment was 533 million yuan, down 40% quarter-on-quarter, with a profit margin of 12%, a decrease of 7 percentage points. The average price of tungsten concentrate in Q3 2024 was 135,900 yuan per ton, down 6% quarter-on-quarter. The output of fine tungsten wire decreased by 20% quarter-on-quarter to 32.2 billion meters [5][6]. Energy New Materials Segment - The energy new materials segment reported revenue of 3.582 billion yuan in Q3 2024, a quarter-on-quarter increase of 19%. The total profit was 140 million yuan, up 6% quarter-on-quarter, with net profit remaining stable at 128 million yuan. The shipment volumes for lithium cobalt oxide and ternary cathodes were 13,900 tons and 12,300 tons, respectively, with increases of 39% and 18% quarter-on-quarter [6]. Rare Earth Magnetic Materials Segment - The rare earth magnetic materials segment achieved revenue of 1.149 billion yuan in Q3 2024, remaining stable quarter-on-quarter. The total profit was 63 million yuan, down 18% quarter-on-quarter, with a profit margin of 5%, a decrease of 1.26 percentage points. The sales volume of magnetic materials was 2,381 tons, showing a slight increase [6]. Real Estate Segment - The real estate segment reported revenue of 0.09 billion yuan in Q3 2024, a quarter-on-quarter decrease of 36%, with a loss of 26 million yuan, although this represents a reduction in losses compared to Q4 2023. The company is in the process of further divesting its real estate assets [7]. Long-term Investment Value - Xiamen Tungsten is characterized as a technology-driven company with long-term strategic vision and potential for growth. It is a leader in tungsten resources, with significant production capacity and plans for future mining projects. The company is also a leader in tungsten deep processing and has a strong commitment to research and development, which is expected to enhance its competitive edge [7].