ZANGGE MINING(SZ:000408) EBSCN·2025-10-20 05:18Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's performance has significantly improved due to the rise in potassium chloride and copper prices, with a notable increase in net profit [2][3] - The resumption of lithium carbonate production and the steady progress of new projects are expected to contribute positively to future earnings [3] Summary by Sections Financial Performance - In the first three quarters of 2025, the company achieved revenue of 2.401 billion yuan, a year-on-year increase of 3.35% - The net profit attributable to shareholders reached 2.751 billion yuan, up 47.26% year-on-year, while the net profit after deducting non-recurring gains and losses was 2.756 billion yuan, an increase of 49.27% year-on-year - For Q3 2025, the company reported a revenue of 723 million yuan, a year-on-year increase of 28.71%, but a quarter-on-quarter decrease of 35.76% [1] Product Sales and Pricing - The potassium chloride sales volume for the first three quarters of 2025 was 783,800 tons, a year-on-year increase of 9.6%, primarily due to the release of approximately 80,000 tons from national reserves - The average selling price of potassium chloride was approximately 2,920 yuan per ton, reflecting a year-on-year increase of 26.9% - The company’s lithium carbonate sales volume was 4,800 tons, a decrease of 53.0% year-on-year, with an average selling price of 67,300 yuan per ton, down 24.6% year-on-year [2] Investment Income - The company received investment income of 1.95 billion yuan from its associate, Julong Copper Industry, representing a year-on-year increase of 43.1% - Julong Copper's copper production was 142,500 tons, up 16.8% year-on-year, with sales volume of 142,400 tons, an increase of 18.1% year-on-year, and an average selling price of 83,000 yuan per ton, up 8.0% year-on-year [2] Future Outlook - The company has resumed production at its lithium subsidiary and adjusted its lithium carbonate production and sales plan for 2025, expecting both to reach 8,510 tons - New projects, including the completion of photovoltaic power station construction contracts and the progress of the Laotian potassium salt mine project, are on track [3] Profit Forecast and Valuation - The profit forecast for 2025-2027 has been raised, with expected net profits of 3.645 billion, 4.845 billion, and 5.828 billion yuan respectively - The report maintains the "Buy" rating based on the anticipated growth driven by rising potassium chloride and copper prices [3][4]