ZANGGE MINING(SZ:000408) Huachuang Securities·2025-03-30 08:12Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [13]. Core Views - The decline in potash and lithium prices has negatively impacted the company's performance, with a reported revenue of 3.251 billion yuan in 2024, a year-on-year decrease of 37.79%. The net profit attributable to the parent company was 2.580 billion yuan, down 24.56% year-on-year [1][5]. - The company's growth potential is significantly bolstered by the Giant Dragon Copper Mine, which contributed 1.928 billion yuan to the net profit, accounting for 74.72% of the total [5]. - Future projects in the potash and lithium sectors are progressing steadily, with significant growth potential anticipated from the Ma Mi Cuo and Laos projects [5]. Financial Summary - 2024 Financial Performance: - Total revenue: 3,251 million yuan, down 37.79% year-on-year - Net profit: 2,580 million yuan, down 24.56% year-on-year - Fourth-quarter revenue: 927 million yuan, down 10.55% year-on-year, but up 64.98% quarter-on-quarter - Fourth-quarter net profit: 712 million yuan, up 57.76% year-on-year, and up 24.71% quarter-on-quarter [1][5]. - Future Financial Projections: - Expected revenues for 2025-2027 are projected at 3.258 billion yuan, 3.391 billion yuan, and 3.391 billion yuan respectively, with net profits expected to rise to 3.240 billion yuan, 5.119 billion yuan, and 5.498 billion yuan [6]. - Earnings per share (EPS) is projected to increase from 1.64 yuan in 2024 to 3.50 yuan by 2027 [6]. - Valuation Metrics: - Price-to-earnings (P/E) ratio is expected to decrease from 22 in 2024 to 10 by 2027, indicating improved valuation as earnings grow [6]. - The target price for the stock is set at 39.2 yuan, based on a 19 times valuation for 2025 [5].