国城矿业：A股钼资源新贵，川矿锂资源新星

Investment Rating - The report gives a "Buy" rating for the company with a target price of 24.80 RMB per share [3] Core Views - The company is a private lead-zinc resource enterprise that is expanding into lithium and other multi-metal businesses, with a focus on acquiring quality assets and enhancing its operational capabilities [1][2] - The acquisition of Guocheng Industrial is expected to significantly strengthen the company's fundamentals and reduce its price-to-earnings (PE) ratio [3][30] - The report anticipates a dual increase in volume and price for both molybdenum and lithium, driven by rising demand and supply constraints in the industry [2][39] Summary by Sections Company Overview - Guocheng Mining is a leading private enterprise in the non-ferrous metal mining sector, primarily engaged in the extraction and trading of lead, zinc, and silver [12][14] - The company has a concentrated shareholding structure, with the controlling shareholder being Guocheng Group, which holds approximately 73.98% of the shares [15][18] Molybdenum Sector - The company is set to restart the acquisition of the high-quality Dazhuji Molybdenum Mine, which is expected to enhance its operational scale and profitability [24][25] - The acquisition price of 55 billion RMB corresponds to a low PE ratio of 4x based on the mine's 2023 net profit, indicating strong shareholder commitment [30][31] - Dazhuji Molybdenum Mine has significant resource potential, with plans to expand its production capacity from 500,000 tons to 800,000 tons per year [36][37] Lithium Sector - The company holds a 48% stake in Jinxin Mining, which has substantial lithium resources, with Li2O reserves increasing to 112,000 tons and an average grade of 1.33% [2][4] - Jinxin Mining is expected to expand its mining capacity significantly, with plans to increase its mining license from 50,000 tons to 500,000 tons per year [4][51] Financial Projections - Revenue projections for the company are 1.67 billion RMB in 2024, 4.78 billion RMB in 2025, and 5.67 billion RMB in 2026, with corresponding net profits of 61 million RMB, 1.39 billion RMB, and 1.45 billion RMB [3][6] - The report indicates that the company is likely to experience a significant reduction in its PE ratio following the acquisition of Guocheng Industrial, with a projected PE of 14x post-acquisition [32][34]