Jinduicheng Molybdenum (SH:601958) SINOLINK SECURITIES·2025-04-03 02:09Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company's performance met expectations, with a revenue of 13.571 billion RMB, up 17.68% year-on-year, and a net profit attributable to shareholders of 2.983 billion RMB, down 3.76% year-on-year [1] - The company is increasing its downstream layout and maintaining high investment in R&D, with significant growth in production of molybdenum products [2] - The company plans to distribute a cash dividend of 4 RMB per 10 shares, maintaining a high dividend payout ratio of 43% [3] - The outlook for molybdenum prices is optimistic, with expectations of significant earnings elasticity for the company as it benefits from stable mining operations [3] Summary by Sections Financial Performance - In Q4 2024, the company achieved a revenue of 3.473 billion RMB, a decrease of 0.89% quarter-on-quarter but an increase of 29.68% year-on-year [1] - The gross profit margin fluctuated due to changes in the proportion of self-produced ore, with Q4 gross profit increasing by 8.57% quarter-on-quarter [2] - The company’s revenue for 2025-2027 is projected to be 14.3 billion, 15.6 billion, and 18.3 billion RMB respectively, with net profits of 3.2 billion, 3.5 billion, and 3.8 billion RMB [4] R&D and Operational Strategy - The company is focusing on expanding its downstream processing capabilities, with production of molybdenum powder and molybdenum plate increasing by 12% and 44% respectively [2] - R&D expenses rose significantly, reflecting the company's commitment to innovation and market expansion [2] Dividend Policy - The company plans to maintain its dividend distribution despite a slight decline in net profit, indicating a strong commitment to returning value to shareholders [3] Market Outlook - The report anticipates a recovery in molybdenum prices, driven by industry supply optimization and cost reductions, which could enhance the company's earnings potential [3]