ZHUYE GP(600961) Minsheng Securities·2025-04-22 05:02Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for future performance [6]. Core Views - The company has shown significant growth in its financial performance, particularly in precious metals, which has contributed to a strong increase in profits [3][19]. - The acquisition of the Shuikoushan mine has enhanced the company's capabilities in precious metals, leading to a notable increase in revenue and profit margins [2][19]. - The report anticipates continued growth in the company's earnings driven by rising production levels and improving processing fees in the zinc sector [3][48]. Summary by Sections 1. Event Overview - The company reported a revenue of 19.759 billion yuan for 2024, a year-on-year increase of 1.82%, and a net profit attributable to shareholders of 787 million yuan, up 28.70% year-on-year [12]. 2. Performance Analysis - Precious metals revenue has significantly increased, with gold and silver revenues reaching 2.489 billion yuan and 2.010 billion yuan respectively, accounting for 22.8% of total revenue, an increase of 8.6 percentage points from 2023 [2][19]. - The company achieved a record net profit of 277 million yuan in Q1 2025, a 74.07% increase year-on-year, driven by the performance of precious metals [12][3]. 3. Company Highlights - Zinc processing fees have rebounded significantly, which is expected to improve the profitability of the company's smelting operations [48]. - The company is controlled by China Minmetals, which has several quality assets that may be injected into the listed company in the future, enhancing its growth potential [50]. 4. Earnings Forecast and Investment Recommendations - The company is projected to achieve net profits of 1.093 billion yuan, 1.221 billion yuan, and 1.359 billion yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 11, 10, and 9 times based on the closing price on April 21, 2025 [3][55][60]. - The report emphasizes the company's strong position in the zinc smelting industry and its potential for continued growth due to rising production and processing fees [3][60].