Tianfeng Securities·2025-09-09 09:42Investment Rating - The investment rating for the company is "Buy" with a target price set for the next six months [8]. Core Views - The company has shown robust expansion with record-high performance indicators, achieving a revenue of 167.71 billion yuan in H1 2025, a year-on-year increase of 11.50%, and a net profit of 23.29 billion yuan, up 54.41% year-on-year [1][5]. - The company is expected to benefit from the long-term growth of copper and gold prices, supported by increased resource reserves that provide room for expansion [5]. Summary by Sections Performance - In H1 2025, the company achieved a total revenue of 167.71 billion yuan, with a profit of 34.50 billion yuan, and a net profit attributable to shareholders of 23.29 billion yuan, reflecting significant year-on-year growth [1]. Production Volume - The company reported steady increases in the production of its main products: copper production reached 570,000 tons (up 9% YoY), gold production was 41 tons (up 16% YoY), and lithium carbonate equivalent production surged by 2961% to 7,315 tons [2]. Cost and Profitability - The operating cost for H1 2025 was 127.88 billion yuan, a 5.16% increase YoY, primarily due to declining ore grades and increased transportation distances. However, the rise in gold and copper prices contributed to an increase in gross margin by 4.60 percentage points [3]. Expenses - Financial expenses decreased by 13.46% YoY due to lower financing costs, while management expenses rose by 24.25% YoY, attributed to increased labor costs and hiring due to expansion [4]. Investment Recommendations - The report maintains a positive outlook on copper and gold prices, projecting continued revenue and profit growth. The company’s resource reserves have significantly increased, supporting future production expansion. The net profit estimates for 2025, 2026, and 2027 have been raised to 48.17 billion yuan, 53.16 billion yuan, and 59.19 billion yuan respectively [5][6].