Western Mining(SH:601168) Dongxing Securities·2025-04-15 10:54Investment Rating - The report maintains a "Recommended" rating for the company [2][12]. Core Views - The company achieved an operating revenue of 50.03 billion yuan in 2024, a year-on-year increase of 17%, and a net profit attributable to shareholders of 2.93 billion yuan, up 5% year-on-year [3]. - The company plans to distribute dividends of 2.38 billion yuan in 2024, with a payout ratio of 81.3% and a dividend yield of 6.22% [3]. - The copper segment remains the core business, contributing 76.46% of total revenue in 2024, with a gross profit of 6.67 billion yuan [4]. - The company is focused on optimizing its mining and smelting processes, which is expected to enhance profitability in the smelting segment [6][10]. Summary by Sections Financial Performance - In 2024, the company reported a net cash flow from operating activities of 8.25 billion yuan, a 32% increase year-on-year [11]. - The gross profit margin improved from 18.04% in 2023 to 19.90% in 2024, while the net profit margin increased from 9.90% to 10.58% [11]. - The company’s return on equity (ROE) rose from 17.76% in 2023 to 18.12% in 2024 [11]. Production and Capacity - The company’s copper production increased by 39% year-on-year to 179,000 tons in 2024, with the core mine, Yulong Copper Mine, contributing 90% of this output [4]. - The smelting capacity for copper reached 350,000 tons per year, a 67% increase year-on-year, while zinc and lead smelting capacities doubled to 200,000 tons per year [6][10]. Future Outlook - Revenue projections for 2025-2027 are 56.47 billion yuan, 60.58 billion yuan, and 63.02 billion yuan, respectively, with net profits expected to reach 4.62 billion yuan, 5.12 billion yuan, and 5.55 billion yuan [12][13]. - The company is expected to continue benefiting from ongoing optimization projects and increased production capacities across various segments [5][6].