驰宏锌锗：中铝旗下铅锌龙头，优质资源静待注入

Investment Rating - The investment rating for the company is "Outperform" [1][7]. Core Insights - The company possesses top-tier lead and zinc mines globally, demonstrating strong profitability. As of the end of 2023, the lead and zinc ore grade is 15.38%, significantly higher than the industry average of 6.55% [3][58]. - The company is backed by the Aluminum Corporation of China (Chinalco) and is entering an accelerated expansion phase, aiming for a metal resource reserve of no less than 50 million tons by the end of the 14th Five-Year Plan [6][14]. - The company is expected to benefit from a healthy global zinc supply-demand balance, with a projected global refined zinc supply shortage of 430,000 tons in 2025 [5]. Summary by Sections Company Overview - The company is the only publicly listed platform under Chinalco focused on lead and zinc, with a goal to achieve an annual metal production of 800,000 tons by 2025 [6][14]. - The company has a total lead and zinc metal capacity of 420,000 tons per year and smelting capacity of 630,000 tons per year [3][49]. Production and Resources - The company controls over 32 million tons of lead and zinc resources, with proven germanium reserves exceeding 600 tons, accounting for 17% of the national total [51]. - The main mining operations, Huize and Yiliang, contribute approximately 80% of the company's total lead and zinc metal production, with ore grades of 28% and 22% respectively [51][58]. Financial Performance - Revenue projections for 2024-2026 are estimated at 22.23 billion, 23.11 billion, and 23.73 billion yuan respectively, with net profits expected to grow by 29.3%, 10.2%, and 9.7% [7]. - The company’s earnings per share (EPS) are projected to be 0.36, 0.40, and 0.44 yuan for the years 2024, 2025, and 2026 respectively [7]. Market Position - The company is positioned as a leader in the domestic lead and zinc industry, with a competitive edge due to its high-grade resources and low production costs [3][58]. - The company’s refining profit margins are under pressure due to low processing fees, leading to reduced production willingness among smelters [4][5]. Future Outlook - The company aims to achieve a minimum annual revenue of 30 billion yuan and a profit of 4 billion yuan by the end of the 14th Five-Year Plan [6]. - The integration of assets from Yunnan Jinding Zinc Industry is expected to significantly enhance the company's mining production capacity [8].