NNCI(SH:600301) Huachuang Securities·2025-03-12 15:37Investment Rating - The report assigns a "Buy" rating to the company with a target price of 27.03 CNY [1][10]. Core Views - The company, Huaxi Nonferrous Metals, is positioned as a major producer of tin and antimony in China, with significant growth potential driven by both internal expansion and external acquisitions [7][8]. - Following a restructuring, the company has significantly increased its production capacity and profitability, with a focus on high-quality mineral resources [7][8]. - The company is expected to achieve substantial revenue and profit growth in the coming years, with projected net profits of 6.5 billion CNY in 2024, 10.7 billion CNY in 2025, and 11.6 billion CNY in 2026 [10]. Summary by Sections Company Overview - Huaxi Nonferrous Metals, formerly known as Nanning Chemical Plant, transitioned to focus on mining after a restructuring in 2023, becoming the only state-owned listed company in Guangxi's nonferrous metal sector [7][15]. - The company has a complete industrial chain covering exploration, mining, ore dressing, smelting, and deep processing [15]. Financial Performance - In 2023, the company reported total revenue of 29.24 billion CNY and a net profit of 3.14 billion CNY, marking significant year-on-year growth [20]. - The company’s revenue is projected to grow to 44.04 billion CNY in 2024, with a year-on-year increase of 50.6% [10]. Resource Layout and Growth Potential - The company holds significant mineral resources across three main mines: Tongkeng Mine, Gaofeng Tin Mine, and Fozichong Lead-Zinc Mine, with a total resource reserve of 64.95 million tons [34][35]. - The Tongkeng Mine is expected to double its production capacity, while the Gaofeng Tin Mine is projected to increase its capacity from 330,000 tons to 450,000 tons [43][44]. Future Growth and Expansion - The company is actively pursuing expansion projects, including the development of deep mining projects and the integration of additional assets from its parent group [8][49]. - The anticipated completion of the new vertical shaft at the Gaofeng Mine is expected to significantly reduce production costs and enhance operational efficiency [45][46].