ZANGGE MINING(SZ:000408) Huaxin Securities·2025-10-29 15:27Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown significant improvement in investment returns from the Jilong Copper Mine, with a notable increase in net profit attributable to shareholders [1][12] - The company reported a revenue of 2.401 billion yuan for the first three quarters of 2025, reflecting a year-on-year increase of 3.35%, while the net profit after deducting non-recurring gains and losses surged by 49.27% [4][12] Summary by Sections Market Performance - The company's stock price is currently at 61.16 yuan, with a total market capitalization of 96 billion yuan [1] Financial Performance - For Q3 2025, the company achieved a revenue of 723 million yuan, up 28.71% year-on-year, and a net profit of 948 million yuan, up 66.62% year-on-year [4] Business Segments - Potassium Chloride Business: - Q3 2025 production was 21.64 thousand tons, down 7.28% year-on-year, while sales volume increased by 41.74% year-on-year to 24.79 thousand tons [5] - Revenue from potassium chloride reached 2.1 billion yuan, a 39.09% increase year-on-year, with an average selling price up 26.88% [5][6] - Lithium Carbonate Business: - Q3 2025 production was 851 tons, down 75.46% year-on-year, with sales volume down 87.21% [6] - Revenue from lithium carbonate was 286 million yuan, with an average selling price down 24.59% [6] Investment Returns - The Jilong Copper Mine reported a copper production of 49.7 thousand tons in Q3 2025, a year-on-year increase of 21.22%, leading to an investment income of 686 million yuan, up 35.04% year-on-year [7][8] Project Progress - The company is making significant progress in its potassium and lithium projects, with ongoing construction and development activities [9][10] - The company has resumed lithium resource development activities, adjusting its annual production and sales targets for lithium carbonate due to operational changes [11] Profit Forecast - The company forecasts revenues of 3.737 billion yuan, 5.260 billion yuan, and 6.660 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 3.820 billion yuan, 4.920 billion yuan, and 6.261 billion yuan [12][14]