HUAYOU COBALT(SH:603799) Ping An Securities·2025-10-28 10:42Investment Rating - The investment rating for Huayou Cobalt Co., Ltd. is "Recommended" (maintained) [1] Core Views - The report highlights that the increase in cobalt prices has led to improved performance, with significant revenue growth expected from ongoing projects [7] - The company reported a year-on-year revenue increase of 40.85% in Q3 2025, reaching 21.744 billion yuan, and a net profit increase of 11.53% to 1.505 billion yuan [4] - The tightening of cobalt resource supply due to new export quota policies in the Democratic Republic of Congo is expected to positively impact cobalt prices and the company's performance [7] Financial Summary - For 2025, the company is projected to achieve a net profit of 5.968 billion yuan, with a corresponding P/E ratio of 20.6 [6][10] - Revenue is expected to grow from 60.946 billion yuan in 2024 to 78.397 billion yuan in 2025, reflecting a year-on-year growth of 28.6% [6][10] - The gross profit margin is anticipated to improve from 17.2% in 2024 to 17.6% in 2025, with net profit margin increasing from 6.8% to 7.6% [10] Market Dynamics - The report notes that the average price of cobalt metal increased by 12.51% to 259,600 yuan per ton in Q3 2025, contributing to revenue growth [7] - The company is well-positioned to benefit from the rising prices of cobalt and lithium due to its substantial nickel-cobalt resource reserves in Indonesia [7] - The tightening of cobalt supply from the Democratic Republic of Congo, with export quotas set at 18,125 tons for 2025, is expected to enhance the global cobalt supply-demand balance [7]