JCHX(SH:603979) Huaxin Securities·2025-09-03 01:04Investment Rating - The report maintains a "Buy" investment rating for the company [8] Core Views - The company reported significant growth in copper production and sales, with a notable increase in revenue and net profit for the first half of 2025 [1] - The mining service segment experienced a decline in Q1 but showed improvement in Q2, indicating a recovery trend [2] - The copper and phosphorus resource development segment continued to exhibit high growth rates, with substantial increases in both revenue and production [3] Summary by Sections Financial Performance - In H1 2025, 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% [1] - The net cash flow from operating activities reached 1.726 billion yuan, reflecting a significant increase of 255.08% year-on-year [1] Mining Services - The mining services segment generated revenue of 3.32 billion yuan in H1 2025, a slight increase of 0.57% year-on-year, with a gross margin of 23.10% [2] - Q1 revenue was 1.5 billion yuan, down 3.29% year-on-year, while Q2 revenue improved to 1.82 billion yuan, up 3.98% year-on-year [2] Copper and Phosphorus Resource Development - The copper and phosphorus resource development segment reported revenue of 2.91 billion yuan in H1 2025, a remarkable increase of 238.03%, with a gross margin of 47.68% [3] - Copper production reached 39,400 tons, up 198.52% year-on-year, and copper sales were 43,900 tons, an increase of 247.65% [3] Future Projects - The company is focusing on the Lubambe project for technical upgrades and the expansion of the Lonshi project, with significant investments planned [7] - A total of 54.89 million USD has been invested in the Lubambe copper mine for operational improvements [7] Earnings Forecast - The company is projected to achieve revenues of 12.76 billion yuan, 14.09 billion yuan, and 15.39 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 2.245 billion yuan, 2.681 billion yuan, and 3.044 billion yuan [8]