HBIS Resources (000923) Capital Securities·2024-02-03 16:00Investment Rating - The report assigns a "Buy" rating to the company [8] Core Views - The company is expected to achieve a significant profit growth in 2023, with a projected net profit attributable to shareholders ranging from 850 million to 1.05 billion yuan, representing a year-on-year increase of 27.57% to 57.59% [17] - The prices of the main products are stable with a slight increase, and shipping costs have decreased. The average annual price of iron ore contracts in 2023 is expected to be 847 yuan/ton, up 10.3% from 2022, while the average price of copper is projected to be 68,402 yuan/ton, an increase of 1.3% [17] - The second phase of the copper mine project is gradually being put into production, with full production expected by the end of 2024. The design capacity of the second phase is 11 million tons, with an estimated annual output of 70,000 tons of copper metal [17] - Supply constraints are expected to drive up the prices of copper and iron ore. The report anticipates a tight balance between supply and demand in 2024, with prices expected to rise further [17] - The company is well-positioned to benefit from these trends, with projected revenues of 6.908 billion, 7.298 billion, and 8.334 billion yuan for 2023, 2024, and 2025 respectively, and net profits of 958 million, 1.331 billion, and 1.514 billion yuan for the same years [17] Summary by Sections Company Basic Data - Latest closing price: 15.00 yuan - Market capitalization: 9.791 billion yuan - Current P/E ratio: 10.64 - Total shares: 653 million [10] Profit Forecast - Revenue for 2023 is estimated at 6.908 billion yuan, with a growth rate of 36.72% compared to 2022 - Net profit for 2023 is projected at 958 million yuan, with a growth rate of 43.77% [10] Financial Statements - Total assets are expected to reach 17.865 billion yuan by 2024 - Total liabilities are projected at 3.695 billion yuan in 2024 [11] Key Financial Ratios - Gross margin is expected to be 66.92% in 2023 - Net profit margin is projected at 13.87% in 2023 - Return on equity (ROE) is expected to be 9.81% in 2023 [11]