YTL(SZ:000960) Minsheng Securities·2025-10-28 07:05Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [5]. Core Insights - The company has demonstrated strong financial performance with a revenue of 344.17 billion yuan for the first three quarters of 2025, reflecting a year-on-year growth of 17.81%. The net profit attributable to shareholders reached 17.45 billion yuan, up 35.99% year-on-year [1]. - The company is positioned to benefit significantly from the upward trend in tin prices, with a clear "slow bull" market anticipated for tin [4]. - The company is actively enhancing its resource exploration and development capabilities, particularly in tin and tungsten, to ensure sustainable growth [2]. Summary by Sections Financial Performance - In Q3 2025, the company achieved a revenue of 133.24 billion yuan, a year-on-year increase of 27.65% and a quarter-on-quarter increase of 17.24%. The net profit attributable to shareholders was 6.83 billion yuan, marking a 41.34% year-on-year growth [1]. - The company’s total production of non-ferrous metals for the first three quarters of 2025 was 271,000 tons, with stable production levels for tin, zinc, and copper [2]. Price Trends - In Q3 2025, the average closing price for tin futures was 269,100 yuan per ton, reflecting a slight increase. Other metal prices, including copper and zinc, also showed positive trends, contributing to the company's performance [3]. Cost Management and Efficiency - The company has successfully reduced its expense ratio to 3.29% of revenue, down 1.21 percentage points year-on-year, indicating effective cost management strategies [3]. - The asset-liability ratio stood at 37.03%, a decrease of 3.16 percentage points compared to the end of 2024, showcasing improved financial stability [3]. Future Outlook - The company is expected to see net profits of 23.28 billion yuan, 26.64 billion yuan, and 27.72 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 17X, 15X, and 14X [4].