NNCI(SH:600301) Guolian Securities·2024-02-22 16:00Investment Rating - The report maintains a "Buy" rating for Huaxi Nonferrous [4][13] Core Views - The company is expected to benefit from a significant increase in mineral production in 2023, which will enhance its performance [12] - The demand for tin is anticipated to rise in 2024 due to multiple catalysts in sectors such as semiconductors, photovoltaics, and new energy vehicles, while supply constraints are expected to limit growth [3][12] - The substantial increase in resource reserves at the company's subsidiary will support potential production expansion [3][12] Financial Performance Summary - The company forecasts a net profit attributable to shareholders of 290 million to 350 million yuan for 2023, representing a year-on-year growth of 1500% to 1831% [2] - The expected net profit for 2024 is projected at 576 million yuan, reflecting a growth rate of 70.80% compared to 2023 [4][18] - The earnings per share (EPS) are estimated to be 0.53 yuan for 2023 and 0.91 yuan for 2024 [4][18] Resource and Production Insights - The company's own mining operations saw a 30% increase in comprehensive metal sales in 2023, offsetting losses from declining metal prices [2] - The verified resource reserves of the subsidiary increased significantly, with tin, zinc, lead, and antimony reserves growing by 33.5%, 30.7%, 17.1%, and 16.4% respectively [3][12] Price Target and Valuation - The target price for Huaxi Nonferrous is set at 13.67 yuan, based on a 15x PE ratio for 2024 [4][13] - The current price is noted at 11.66 yuan, indicating potential upside [13]