ZANGGE MINING(000408) Huaxin Securities·2025-04-07 01:25Investment Rating - The report maintains a "Buy" investment rating for the company [5] Core Views - The company's revenue from potassium and lithium segments has declined significantly due to falling sales prices [2][3] - The investment income from the giant copper mine has increased, contributing significantly to the company's overall profit [4] - Future growth in potassium and lithium production capacity is anticipated, supported by ongoing projects [9][10] Revenue and Profit Summary - In 2024, the company achieved a revenue of 3.251 billion yuan, a year-on-year decrease of 37.79%, with a net profit of 2.580 billion yuan, down 24.56% [1][11] - The average selling price of potassium chloride decreased by 14.91% to 2,115.25 yuan/ton, while the average selling cost increased by 7.18% to 1,167.04 yuan/ton [2] - For lithium carbonate, the revenue fell by 48.40% to 1.022 billion yuan, with the average selling price dropping by 60.81% to 75,200 yuan/ton [3] Copper Mine Investment - The company holds a 30.78% stake in Giant Copper, which produced 166,300 tons of copper in 2024, generating an investment income of 1.928 billion yuan, accounting for 74.72% of the company's net profit [4] - The investment income from Giant Copper increased by 48.72% year-on-year, indicating strong performance in the copper segment [4] Future Projections - Revenue projections for 2025-2027 are 3.307 billion yuan, 3.730 billion yuan, and 4.720 billion yuan respectively, with net profits expected to be 3.023 billion yuan, 4.336 billion yuan, and 5.220 billion yuan [11][13] - The company is expected to benefit from significant cost advantages in lithium extraction and anticipated increases in production capacity for both lithium and potassium [11] Project Development - The company is advancing multiple projects, including the development of potassium resources in Laos and lithium projects in Tibet, which are expected to enhance future production capacity [9][10]