Sinomine(SZ:002738) ZHESHANG SECURITIES·2025-05-05 15:40Investment Rating - The investment rating for the company is "Buy" [8] Core Views - The company reported a revenue of 5.36 billion in 2024, a decrease of 10.8% year-on-year, and a net profit of 760 million, down 65.7% year-on-year. The first quarter of 2025 saw a revenue of 1.54 billion, an increase of 36.4% year-on-year, but a net profit decline of 47.4% year-on-year [1][6] - The lithium business continues to grow, with a production of 43,700 tons in 2024, up 137.8% year-on-year, and sales of 42,600 tons, up 145.0% year-on-year. The company is implementing cost-reduction measures to mitigate market risks [2][3] - The cesium and rubidium business is showing strong performance, with a revenue of 345 million in the first quarter of 2025, a growth of 94% year-on-year [3] - The copper smelting business faced challenges due to a tight global supply of copper concentrate, leading to a net loss of approximately 100 million in the first quarter of 2025 [4] - The company aims to achieve a production capacity of 60,000 tons per year at the Kitumba copper project by 2026, with a total copper resource of 27.9 million tons [5][6] Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 5.36 billion, with a net profit of 760 million, reflecting a significant decline in profitability. The first quarter of 2025 showed a revenue of 1.54 billion, but net profit decreased to 130 million [1][6] - The projected net profits for 2025-2027 are 640 million, 1.32 billion, and 1.98 billion respectively, with corresponding EPS of 0.89, 1.83, and 2.74 [6][12] Business Segments - The lithium segment is expanding, with a production increase to 43,700 tons in 2024 and a sales increase to 42,600 tons. The company is also focusing on cost reduction strategies [2][3] - The cesium and rubidium segment reported a revenue increase of 94% in the first quarter of 2025, indicating strong market demand [3] - The copper smelting segment is under pressure due to reduced processing fees, resulting in a net loss in early 2025 [4] Future Outlook - The company is targeting a production capacity of 60,000 tons per year at the Kitumba copper project by 2026, with ongoing construction and development plans [5][6]