CGN MINING(HK:01164) HTSC·2025-06-04 07:45Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The newly signed three-year uranium sales agreement for 2026-28 has exceeded market expectations in terms of volume, price, and annual increment rate, indicating a positive outlook for the company's profitability and valuation [1][2] - The agreement's benchmark prices for 2026, 2027, and 2028 are set at 94.22, 98.08, and 102.1 USD per pound U3O8, respectively, which are significantly higher than previous agreements [2][9] - The increase in the proportion of spot prices in the pricing formula from 60% to 70% is expected to enhance the company's profit elasticity, aligning sales prices more closely with market trends [9] Financial Forecasts and Valuation - The company’s projected net profit for 2026 and 2027 has been raised by 15% and 10% to 1.028 billion and 1.135 billion HKD, respectively, with corresponding EPS of 0.14 and 0.15 HKD [2][11] - The target price has been adjusted to 2.43 HKD, reflecting a clearer expectation for sales volume and price for 2026 [2][5] - Revenue forecasts for the years 2023 to 2027 are as follows: 7,363 million, 8,624 million, 7,838 million, 8,724 million, and 9,701 million HKD, with corresponding growth rates [4][12] Key Metrics - The company's projected EPS for 2026 is 0.14 HKD, with a PE ratio of 12.28 [4][12] - The projected ROE for 2026 is 20.97%, indicating strong profitability [4][12] - The company’s market capitalization is approximately 12,617 million HKD, with a closing price of 1.66 HKD as of June 3 [6]