HBIS Resources (000923) HTSC·2025-04-30 08:09Investment Rating - The report maintains a "Buy" rating for the company [5][8]. Core Views - The company achieved a revenue of 5.582 billion RMB in 2024, a year-on-year decrease of 4.86%, with a net profit attributable to shareholders of 566 million RMB, down 37.95% year-on-year [1][2]. - The copper phase II project commenced production at the end of 2024, which is expected to open up future growth opportunities for the company [1][4]. - The report predicts that iron ore prices may continue to be under pressure in 2025 due to an expected increase in global iron ore production capacity [3]. Summary by Sections Financial Performance - In 2024, the company reported iron ore production and sales of 9.005 million tons and 9.324 million tons, respectively, representing year-on-year growth of 60.16% and 32.54% [2]. - The average price of 62% iron ore fell to 109.44 USD/ton, a decrease of 10.31 USD/ton year-on-year, impacting profitability [2]. - The company's net profit for Q4 2024 was a loss of 11.43 million RMB, a significant decline compared to the previous year [1]. Future Projections - The company plans to increase its iron ore production and sales to 10 million tons in 2025 [3]. - The copper production and sales are expected to rise to 32,000 tons and 29,000 tons, respectively, in 2025 [4]. Valuation Metrics - The report adjusts the company's EPS forecasts for 2025-2027 to 1.26, 1.44, and 1.79 RMB, reflecting a downward revision of 12% and 13% for 2025 and 2026, respectively [5]. - The target price is set at 17.59 RMB, based on a PE ratio of 14.0X for 2025, which is an increase from the previous target price of 16.55 RMB [5][9].