国投证券港股晨报-20251216

Core Insights - The report indicates that China's economy continued to show steady progress in November, with the Hang Seng Index declining by 1.34% and significant trading activity in the stock market [2][3] - The report highlights the performance of various sectors, including a rise in consumer goods and gold stocks, with notable increases in companies like Xiaomi and China Ping An [2][4] Company Overview - The specific company under review, Zhihui Mining (2546.HK), is engaged in the exploration, mining, and production of zinc, lead, and copper in Tibet, ranking fifth, fourth, and fifth respectively in these categories for 2024 [8] - The company has significant mineral reserves, with open-pit and underground mines expected to operate for 8 and 31 years respectively [8][10] Financial Performance - The company's projected revenues for 2022, 2023, and 2024 are approximately RMB 482.35 million, RMB 546.13 million, and RMB 301.43 million, reflecting a year-on-year growth of 13.2% and a decline of 44.8% [9] - The gross profit margins for copper concentrate exceed 80%, while zinc concentrate margins are more volatile [9] Industry Status and Outlook - The demand for zinc concentrate in Tibet is projected to grow at a compound annual growth rate (CAGR) of -0.5% from 2018 to 2024, with a slight recovery expected from 2025 to 2028 [10] - The report anticipates stable zinc concentrate prices between RMB 18,600 and RMB 19,000 per ton, with a similar upward trend expected for lead and copper concentrates [10] Advantages and Opportunities - The company benefits from resource and geographical advantages, being located in a region rich in metals such as lead, zinc, copper, and silver [11] - A professional technical team and good community relations further enhance the company's operational capabilities [11] Use of Proceeds - The company plans to allocate approximately 29.2% of the funds raised for enhancing mining capabilities, 23.4% for exploration investments, and 18.7% for improving ore processing and production optimization [13][14] Investment Recommendation - The company has achieved profitability with a net profit of over HKD 100 million, and despite challenges in 2024, a recovery is anticipated [16] - The report suggests a cautious approach to investment, rating the company at "5.5" and recommending attention due to its positive cash flow and the potential for oversubscription in its IPO [16]