HUAYOU COBALT(SH:603799) Guoxin Securities·2025-08-18 14:12Investment Rating - The investment rating for the company is "Outperform the Market" [5][18]. Core Views - The company achieved record-high operating performance in the first half of the year, with revenue of 37.197 billion yuan, up 23.78% year-on-year, and a net profit attributable to shareholders of 2.711 billion yuan, up 62.26% year-on-year [1][8]. - The company continues to strengthen its overseas layout and enhance its integrated advantages, with significant projects underway in Indonesia and Africa [2][16]. - The company is expected to see revenue growth of 22.1%, 9.0%, and 9.8% for the years 2025 to 2027, with net profit growth of 46.0%, 15.5%, and 18.4% respectively [3][18]. Summary by Sections Financial Performance - In Q2 2025, the company achieved revenue of 19.355 billion yuan, up 28.28% year-on-year and 8.48% quarter-on-quarter, with a net profit of 1.459 billion yuan, up 27.04% year-on-year and 16.51% quarter-on-quarter [1][8]. - The company’s core products showed mixed performance, with cobalt product shipments of approximately 20,800 tons, down 9.89% year-on-year, while nickel product shipments increased significantly by 83.91% year-on-year to approximately 139,400 tons [12][16]. Project Developments - The company is actively expanding its overseas projects, including a 120,000-ton nickel metal project in Indonesia and a lithium project in Zimbabwe, which has increased its lithium resource reserves from 1.5 million tons to 2.45 million tons [2][16]. - The company is also advancing its downstream projects, with a 50,000-ton ternary precursor project in Indonesia expected to be completed by November 2024 and a 25,000-ton cathode material project in Hungary progressing well [17] . Profit Forecasts - The company has revised its profit forecasts upward, expecting revenues of 74.439 billion yuan, 81.159 billion yuan, and 89.137 billion yuan for 2025 to 2027, respectively [3][19]. - The diluted EPS is projected to be 3.57 yuan, 4.12 yuan, and 4.87 yuan for the same period, with corresponding P/E ratios of 12.4, 10.7, and 9.1 [3][19].