五矿资源（01208）：困境初步反转，25年展望继续向好

Investment Rating - The investment rating for the company is maintained as "Buy" [7]. Core Views - The company has shown preliminary signs of reversing its difficulties, with a positive outlook for 2025. The revenue for 2024 is projected at $4.479 billion, a year-over-year increase of 3$366 million, significantly up from $122 million in 2023 [1][4]. - The company is expected to achieve strong growth in 2025, with a projected net profit of$498 million, reflecting a substantial increase from the previous year [4][6]. Summary by Sections Financial Performance - In 2024, the company achieved copper production and sales of 320,000 and 300,000 tons respectively, with a C1 cost of $1.51 per pound. The production increase and cost reduction were attributed to the commissioning of a second pit [2]. - The Kinsevere copper mine produced 45,000 tons in 2024, with a C1 cost of$3.26 per pound, benefiting from reduced external ore purchases [2]. - The company reported a significant increase in net profit for 2024, reaching $162 million compared to just$9.5 million in 2023, despite facing cobalt impairment losses of $53 million [3][6]. Production Guidance - The company has provided guidance for 2025, expecting copper production to rise significantly across its mines, with the LB copper mine projected to produce between 360,000 to 400,000 tons and the Kinsevere mine expected to produce between 63,000 to 69,000 tons [2]. - The C1 costs for the LB mine are anticipated to increase to between$1.50 and $1.70 per pound due to rising employee benefits, while the Kinsevere mine's costs are expected to decrease to between$2.50 and $2.90 per pound [2]. Valuation and Price Target - The target price for the company's stock has been raised to HKD 3.31 from HKD 2.43, based on a price-to-earnings (PE) ratio of 10.4x for 2025, reflecting a 20$0.04 in 2025, with a return on equity (ROE) expected to reach 13.58% [6][18].