JCHX(SH:603979) Guoxin Securities·2025-08-26 14:29Investment Rating - The investment rating for the company is "Outperform the Market" [4][21]. Core Views - The company reported strong performance in the second quarter, with significant revenue and profit growth driven by breakthroughs in copper mining projects [2][3]. - The mining service business showed stable revenue, while the mining resource business experienced rapid growth in both revenue and profit margins [3][19]. - The company is expected to maintain its growth trajectory, with projected revenue and net profit increases over the next few years [4][21]. Summary by Sections Financial Performance - In the first half of the year, the company achieved revenue of 6.316 billion yuan, a year-on-year increase of 47.82%, and a net profit of 1.111 billion yuan, up 81.29% [2][8]. - The second quarter alone saw revenue of 3.505 billion yuan, a 52.39% increase year-on-year, and a net profit of 689 million yuan, which is a 103.25% increase year-on-year [2][8]. Mining Service Business - The mining service segment generated revenue of 3.322 billion yuan in the first half, a slight increase of 0.57%, but the gross profit decreased by 17.26% to 767 million yuan, resulting in a gross margin of 23.10% [2][13]. - The decline in gross profit was attributed to the transition of Lubambe copper mine to an internal management unit and operational disruptions due to seismic activities [2][13]. Mining Resource Business - The mining resource segment reported revenue of 2.912 billion yuan, a substantial increase of 238.03%, with gross profit rising by 276.83% to 1.388 billion yuan, achieving a gross margin of 47.68% [3][19]. - The company produced approximately 39,400 tons of copper equivalent and sold about 43,900 tons, with sales exceeding production due to inventory at Lonshi copper mine [3][19]. Future Projections - The company forecasts revenues of 12.856 billion yuan, 13.718 billion yuan, and 16.529 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 29.3%, 6.7%, and 20.5% [4][21]. - Net profit projections for the same years are 2.515 billion yuan, 2.598 billion yuan, and 3.260 billion yuan, with growth rates of 58.8%, 3.3%, and 25.5% respectively [4][21].