ZGXT(SZ:000831) Guoxin Securities·2025-06-12 00:45Investment 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. Its performance is closely tied to rare earth prices, and it has strengthened resource security through acquisitions [1][9]. - The company has a clear expectation of integration within the group, as it is actively cooperating to resolve competition issues with other subsidiaries [3][50]. Financial Performance - In 2024, the company achieved revenue of 3.03 billion yuan, a decrease of 24.09% year-on-year, and a net profit of -287 million yuan, a decline of 168.69% [1][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 turnaround from losses [1][12]. 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 rare earth oxides and 2,384 tons for rare earth ores [2][33]. - From 2024, all rare earth ore produced will be used internally, with no external sales [2][33]. Market Position and Strategy - The company holds a significant position within the China Rare Earth Group, with its mining and separation indicators being a small portion of the group's total [49][50]. - The company is expected to benefit from the overall growth in the rare earth market, with projected revenues for 2025-2027 of 5.00 billion, 5.88 billion, and 6.85 billion yuan, respectively [4][5]. Financial Projections - The company forecasts net profits of 390 million, 529 million, and 658 million yuan for 2025, 2026, and 2027, respectively, with significant growth rates [4][5]. - The earnings per share (EPS) are projected to be 0.37, 0.50, and 0.62 yuan for the same years, indicating a strong recovery trajectory [4][5].