Zijin Mining(SH:601899) Minsheng Securities·2025-04-13 05:23Investment Rating - The report maintains a "Recommended" rating for the company [5] Core Views - The company achieved a record high net profit in Q1 2025, driven by increased copper and gold prices and production [12][16] - The company is expected to see continuous growth in copper and gold production, with projected net profits of 41.81 billion, 46.13 billion, and 48.16 billion for 2025, 2026, and 2027 respectively [4][47] Summary by Sections Q1 2025 Financial Performance - In Q1 2025, the company reported revenue of 789.3 billion, a year-on-year increase of 5.55% and a quarter-on-quarter increase of 7.76% [12] - The net profit attributable to shareholders was 101.7 billion, representing a year-on-year growth of 62.39% and a quarter-on-quarter growth of 32.15% [12][16] Revenue and Profit Breakdown - The year-on-year increase in net profit was primarily due to a gross profit increase of 56.5 billion, attributed to rising copper and gold prices [16] - The gross profit margin for Q1 2025 was 22.9%, up 6.3 percentage points year-on-year [21] Production and Sales - Copper and gold production saw significant growth, with copper production increasing by 7.33% and gold production by 6.92% quarter-on-quarter [31] - The company benefited from the ramp-up of production at various projects, including the La Arena project in Peru [31] Cost and Pricing - The average prices for copper and gold increased by 5.05% and 11.98% respectively in Q1 2025 [31] - The cost of production for copper and gold increased slightly, with gold costs rising by 6.82% [32] Future Outlook - The company is expected to continue benefiting from rising copper and gold prices, with projected net profits of 418 billion, 461 billion, and 482 billion for 2025, 2026, and 2027 respectively [4][47] - The company has initiated a share buyback program, purchasing 64.32 million shares at an average price of 15.55 per share, reflecting confidence in its market value [14]