JCHX(SH:603979) ZHONGTAI SECURITIES·2025-06-10 12:51Investment Rating - The report assigns a "Buy" rating for the company for the first time [2]. Core Views - The company is a leading integrated mining service provider in China, successfully extending its core business from mining development services to resource development, creating a dual-driven growth pattern that supports steady performance [6][12]. - The mining service business is experiencing robust growth, with a significant increase in high-margin overseas business contributing to revenue optimization [7][11]. - The resource business has strong growth potential, particularly in copper projects, with high realization rates expected to drive future earnings [9][54]. Summary by Sections 1. Business Overview - The company has a solid foundation with over 20 years of experience in mining development services, focusing on mining operation management, engineering construction, and technical research [18]. - The ownership structure is controlled by the Wang family, who have extensive experience in the mining industry [21]. 2. Mining Service Business - The mining service segment remains the primary source of revenue and profit, with a compound annual growth rate (CAGR) of 10.77% in revenue and 11.84% in gross profit from 2015 to 2024 [35][40]. - The overseas business has rapidly expanded, with the revenue share from international projects increasing from 21.3% in 2015 to 71.63% in 2024 [40][43]. - The company has established long-term relationships with major mining enterprises, enhancing its reputation and growth potential in overseas markets [48][50]. 3. Resource Business - The company has made significant strides in resource development, acquiring multiple copper and phosphate mining projects, with a focus on high realization rates [54][59]. - The Dikulushi copper mine is expected to yield substantial returns, with a production capacity of 10,000 tons of copper per year [59]. - The Lonshi copper mine is projected to reach an annual production of 40,000 tons by 2025, with further expansion planned [62]. - The San Matias copper-silver project in Colombia is progressing well, with expected production of 22,000 tons of copper annually upon completion [64]. 4. Industry Outlook - The mining service industry is transitioning towards high-end, deep, and intelligent services, with increasing demand for advanced mining technologies [52][53]. - The overall market for mining services is expected to grow due to rising metal prices and increased capital expenditure by mining companies [53].