Humon Share(SZ:002237) HTSC·2025-03-28 03:34Investment Rating - The report maintains a "Buy" rating for the company with a target price of 11.52 RMB [7][8]. Core Views - The company achieved a revenue of 75.801 billion RMB in 2024, a year-on-year increase of 15.59%, while the net profit attributable to shareholders was 537 million RMB, up 4.07% year-on-year [1][2]. - The report highlights that the company's main business revenue increased due to higher production and prices of gold and copper, but profitability did not increase due to lower processing fees and increased impairment losses [2][3]. - The forecast for gold prices is optimistic, with expectations of a continued upward trend in 2025-2026, driven by economic uncertainties and increased demand for gold as a safe-haven asset [3][4]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 17.640 billion RMB, an increase of 18.53% year-on-year, but a net profit of 72.186 million RMB, down 31.55% year-on-year [1]. - The overall production and operation of the company remained stable, with significant contributions from rare metals and by-products, which saw a gross profit increase of 406 million RMB compared to 2023 [2]. Future Outlook - The company is expected to benefit from rising prices of its main products, with net profit projected to increase to 844 million RMB in 2025 [1][4]. - The report anticipates that the supply-demand dynamics for copper will improve, potentially leading to higher copper prices in the coming years [3][4]. Valuation Metrics - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 0.74 RMB, 0.93 RMB, and 1.29 RMB respectively, reflecting a significant growth trajectory [4][6]. - The report provides a comparison of the company's price-to-earnings (PE) ratio with peers, suggesting a valuation of 15.6 times PE for 2025, which is lower than the industry average of 19.5 times [4][12].