XINGYE SILVER&TIN(000426)2025-05-16 13:36Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [4] Core Views - The company has a strong resource base and is expanding its global footprint, particularly in silver and tin mining. It has a history of acquiring high-quality mining assets, which has significantly increased its silver reserves by 181% following the acquisition of Yubang Mining. The company is also involved in restructuring efforts to address past debt issues, with plans to inject profitable subsidiaries into the listed entity [5][58][61]. Company Overview - The company primarily engages in the mining and selection of silver and tin, with a history of over 30 years as a private mining enterprise in Inner Mongolia. It has expanded its operations internationally, acquiring resources in Indonesia and Africa. As of the end of 2024, the company holds silver reserves of 27,200 tons and tin reserves of 185,700 tons, making it a significant player in the domestic market [5][10][51]. Financial Analysis - The company has shown significant revenue growth, with projected revenues of 5.404 billion, 6.244 billion, and 7.389 billion yuan for 2025-2027, representing year-on-year growth rates of 26.55%, 15.54%, and 18.34% respectively. The net profit attributable to shareholders is expected to reach 2.049 billion, 2.444 billion, and 2.967 billion yuan over the same period, with corresponding growth rates of 33.93%, 19.26%, and 21.41% [5][26][31]. Profitability Forecast and Valuation - The company is expected to maintain a strong profitability trajectory, with an estimated EPS of 1.15, 1.38, and 1.67 yuan for 2025-2027. The current stock price reflects a PE ratio of 11.6, 9.8, and 8.0 times for the same years, indicating a potential upside of 20.42% to 37.62% compared to its estimated fair value range of 16.16 to 18.47 yuan [5][26][31]. Core Competitiveness - The company’s core competitiveness lies in its ability to acquire high-quality resources. Following the acquisition of Yubang Mining, its silver reserves have significantly increased, positioning it as a leading player in the silver market in Asia. The company ranks first in silver reserves and second in tin reserves among domestic listed companies [5][51][58].