SDR(000603) China Post Securities·2025-05-29 06:23Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 20% compared to the benchmark index within the next six months [2][13]. Core Insights - The company reported a revenue of 2.013 billion yuan in 2024, a year-on-year decrease of 10.66%, while the net profit attributable to shareholders reached 390 million yuan, reflecting a significant increase of 163.56% [4]. - In Q1 2025, the company achieved a revenue of 353 million yuan, with net profit attributable to shareholders at 8 million yuan, marking year-on-year growth of 33.92% and 194.37% respectively [4]. - The growth in performance is primarily attributed to rising metal prices and the completion of technical upgrades at the Jinshan mine [4][5]. - The average spot prices for silver, gold, lead, and zinc increased by 30.94%, 23.87%, 9.67%, and 8.18% respectively in 2024 [4]. Financial Performance Summary - The company’s production figures for silver, gold, lead, and zinc were 138,590 tons, 125 tons, 13,406 tons, and 24,368 tons respectively, showing a decline of 4.48%, 15.38%, 0.42%, and 1.84% year-on-year [5]. - The gross profit for 2024 was 986 million yuan, an increase of 35.53% year-on-year, with contributions from lead concentrate, zinc concentrate, and silver ingots [5]. - The company has been actively acquiring quality asset stakes, including the remaining 47% stake in Honglin Mining and 33% in its subsidiary Jinshan Mining [5]. Growth Drivers - The Jinshan Mining subsidiary is expected to enter normal production in 2025 after completing technical upgrades, with an annual mining capacity of 480,000 tons [6]. - The company anticipates revenue growth to 2.749 billion yuan in 2025, representing a year-on-year increase of 36.56%, with net profit projected at 601 million yuan, a growth of 54.05% [6][9]. - Long-term growth is supported by the potential production from Dongsheng Mining, expected to commence in 2026, and the expansion of Jinshan Mining's capacity to 900,000 tons per year [6].