Orient Securities·2025-09-21 02:48Investment Rating - The report maintains a "Buy" rating for the company with a target price of 31.79 CNY based on a PE ratio of 17X for comparable companies in 2025 [5][2]. Core Insights - The company's copper and gold business is expected to continue experiencing growth in both volume and price, which is anticipated to drive performance upward. The company achieved a net profit of 23.29 billion CNY in the first half of 2025, representing a year-on-year increase of 54.41% [9]. - The company is actively pursuing resource exploration and acquisition strategies to enhance its resource base, with significant increases in copper, gold, and lithium resources reported [9]. - The planned spin-off of the overseas gold segment is expected to facilitate further expansion in the gold business and potentially lead to a revaluation of the company's overall value [9]. Financial Forecasts - The company forecasts revenue growth from 293.4 billion CNY in 2023 to 461.9 billion CNY in 2027, with a compound annual growth rate (CAGR) of approximately 7.6% [3]. - Net profit is projected to increase from 21.12 billion CNY in 2023 to 74.19 billion CNY in 2027, reflecting a CAGR of about 18.8% [3]. - Earnings per share (EPS) are expected to rise from 0.79 CNY in 2023 to 2.79 CNY in 2027, indicating strong growth potential [3]. Key Financial Metrics - The gross margin is expected to improve from 15.8% in 2023 to 27.8% in 2027, while the net margin is projected to increase from 7.2% to 16.1% over the same period [3]. - The return on equity (ROE) is anticipated to reach 31.6% in 2025, reflecting the company's effective use of equity capital [3]. - The price-to-earnings (PE) ratio is expected to decrease from 30.7 in 2023 to 8.7 in 2027, indicating a potentially attractive valuation as earnings grow [3].