HAILIANG(SZ:002203) CHINA DRAGON SECURITIES·2025-08-05 12:48Investment Rating - The investment rating for the company is upgraded to "Buy" [2][6]. Core Views - The recent adjustment in the US copper tariff policy is expected to benefit the company directly, as it has established copper processing capacity in the US [5][6]. - The exclusion of copper raw materials from the tariff will allow the company to enhance its profitability through local production, as the prices of copper processing products may rise due to supply constraints [5][6]. - The company is projected to increase its North American production capacity, with an expected gradual ramp-up from the second half of 2025 to 2026 [5][6]. Financial Summary - The company currently has 30,000 tons of production capacity in operation, with an additional 60,000 tons under construction, representing an investment of 1.15 billion yuan, of which 1.09 billion yuan has been completed [5][7]. - The forecasted net profit for 2025-2027 is adjusted to 1.44 billion yuan, 2.71 billion yuan, and 3.21 billion yuan, respectively, with corresponding P/E ratios of 17x, 9x, and 7.6x [5][7]. - Revenue projections for 2025, 2026, and 2027 are 100.70 billion yuan, 118.69 billion yuan, and 137.33 billion yuan, respectively, with growth rates of 15.23%, 17.86%, and 15.71% [7][9]. Comparable Company Analysis - The company is compared with peers such as Bowei Alloys, Jintian Copper, and Tongling Nonferrous Metals, with the average P/E ratio for these companies being 17.2x for 2023 [8]. - The company's current P/E ratio is 18.4x for 2023, indicating a potential undervaluation given its market position as a leading copper processing enterprise [6][8].