Ping An Securities·2025-08-28 08:01Investment Rating - The investment rating for the company is "Recommended" [1] Core Views - The company has shown significant growth in its copper and cobalt sectors, with a notable increase in net profit by 60.1% year-on-year for the first half of 2025 [5] - The company is expanding its gold mining operations, which is expected to become a new growth driver in the long term [8] - The report anticipates steady growth in copper and cobalt production due to ongoing overseas expansion projects, enhancing the company's earnings potential [8] Financial Performance Summary - In the first half of 2025, the company achieved total revenue of 947.7 billion yuan, a decrease of 7.8% year-on-year, while net profit attributable to shareholders was 86.7 billion yuan, an increase of 60.1% year-on-year [5] - The second quarter of 2025 saw revenue of 487.7 billion yuan, down 14.0% year-on-year but up 6.0% quarter-on-quarter, with a net profit of 47.3 billion yuan, reflecting a year-on-year increase of 41.2% and a quarter-on-quarter increase of 19.8% [5] - The projected net profit for 2025-2027 is adjusted to 167.7 billion, 184.0 billion, and 206.6 billion yuan respectively, with corresponding P/E ratios of 14.9, 13.6, and 12.1 [8] Production and Operational Highlights - The company exceeded production targets for copper and cobalt in the first half of 2025, with copper production reaching 353,600 tons (up 12.68% year-on-year) and cobalt production at 61,100 tons (up 13.05% year-on-year) [8] - The acquisition of Ecuador's Odin Mining (KGHM Gold Mine) is expected to enhance the company's gold resource portfolio, with an estimated gold resource of 638 tons and a planned production start before 2029 [8] Future Outlook - The company is expected to benefit from cost advantages and increased production capacity in the copper and cobalt sectors, which will likely lead to higher earnings elasticity [8] - The report emphasizes the importance of ongoing projects and operational improvements to sustain growth in the coming years [8]