ZGXT(SZ:000831) Guoxin Securities·2025-06-11 15:11Investment Rating - The report gives an "Outperform" rating for the company [4][6]. Core Views - The company is the core listed platform of China Rare Earth Group, benefiting from multiple catalysts in the rare earth industry [1]. - The company's performance is closely tied to rare earth prices, with significant fluctuations observed in recent years [12]. - The acquisition of the Jianghua rare earth mine in Hunan province strengthens the company's resource security [1][9]. Financial Performance - In 2024, the company achieved revenue of 3.027 billion yuan, a decrease of 24.09% year-on-year, and a net profit of -287 million yuan, down 168.69% [5][12]. - For Q1 2025, the company reported revenue of 728 million yuan, a year-on-year increase of 141.32%, and a net profit of 73 million yuan, marking a return to profitability [1][12]. - The company's revenue projections for 2025-2027 are 5 billion, 5.88 billion, and 6.85 billion yuan, respectively, with net profits expected to grow significantly [4][5]. Production and Sales - The company's main products include rare earth oxides, rare earth metals, and rare earth ores, with 2024 production figures of 7,785 tons for oxides and 2,384 tons for ores [2][33]. - The sales distribution in 2024 was 60% for rare earth oxides and 38% for rare earth metals, with all rare earth ore being used internally [2][33]. Industry Context - The rare earth mining and separation indicators for 2024 are set at 270,000 tons, with the company holding a small share of 2.93% of the total mining indicators [3][49]. - The report highlights a trend of increasing demand for rare earths, with a forecasted growth in mining and separation indicators for 2025 [54].