ZANGGE MINING(SZ:000408) Minsheng Securities·2025-08-03 11:47Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [7]. Core Views - The company has demonstrated strong performance in H1 2025, with a revenue of 1.68 billion yuan, a year-on-year decrease of 4.7%, while net profit attributable to shareholders increased by 38.8% to 1.80 billion yuan [1]. - The company is expected to benefit from the growth in its potassium, lithium, and copper segments, with significant expansion projects underway [5]. - The report forecasts net profits for 2025-2027 to be 3.56 billion, 6.08 billion, and 7.93 billion yuan respectively, with corresponding PE ratios of 20, 12, and 9 times based on the closing price on August 1 [6][5]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 1.68 billion yuan, with a net profit of 1.80 billion yuan, reflecting a 38.8% increase year-on-year [1]. - The company plans to distribute a cash dividend of 10 yuan per 10 shares, totaling 1.57 billion yuan, with a dividend payout ratio of 87.1% [1]. Lithium Segment - In H1 2025, lithium carbonate production reached 5,200 tons, with sales of 4,500 tons, achieving 47.0% and 40.6% of the annual targets respectively [2]. - The average selling price of lithium carbonate was 67,000 yuan per ton, with a significant cost advantage reflected in a stable operating cost of 41,000 yuan per ton [2]. Potassium Segment - The company produced 485,000 tons of potassium chloride in H1 2025, with sales of 536,000 tons, completing 48.5% and 56.4% of the annual targets respectively [3]. - The average selling price of potassium chloride increased by 25.6% year-on-year to 2,845 yuan per ton, while the operating cost decreased by 7.4% to 996 yuan per ton [3]. Copper Segment - Copper production in H1 2025 was 93,000 tons, with a net profit of 4.11 billion yuan, achieving a record high in unit profitability at 44,000 yuan per ton [4]. - The company reported investment income of 1.26 billion yuan in H1 2025, with a significant contribution from its copper operations [4].