Western Securities·2025-12-16 02:52Investment Rating - The report maintains a "Buy" rating for Luoyang Molybdenum (603993.SH) [6] Core Views - Luoyang Molybdenum has announced the acquisition of 100% equity in three gold mining assets in Brazil from Equinox Gold for a total consideration of $1.015 billion, expected to close in Q1 2026, pending regulatory approvals [1][6] - The acquisition includes Aurizona, RDM, and Bahia mining complexes, with a total gold resource of 156 tons and an estimated production of approximately 7.7 tons in 2024 [2][3] - The company is accelerating its gold asset layout, aiming for nearly 20 tons of annual gold production post-acquisition, which is expected to initiate a second growth curve for the company [3] Financial Projections - Revenue is projected to grow from 186.27 billion CNY in 2023 to 241.72 billion CNY by 2027, with a compound annual growth rate (CAGR) of approximately 7.7% [4] - Net profit is expected to increase significantly from 8.25 billion CNY in 2023 to 28.08 billion CNY in 2027, reflecting a CAGR of around 36% [4] - Earnings per share (EPS) are forecasted to rise from 0.39 CNY in 2023 to 1.31 CNY in 2027, with a price-to-earnings (P/E) ratio decreasing from 46.5 to 13.7 over the same period [4][10]