Western Mining(SH:601168) Huaxin Securities·2024-03-20 16:00Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Views - The company has completed the expansion of the Yulong Copper Mine, which is expected to lead to continuous growth in copper production [2] - In 2023, the company achieved a revenue of 42.748 billion yuan, a year-on-year increase of 6%, while the net profit attributable to shareholders decreased by 18% to 2.789 billion yuan [2] - The company plans to achieve total revenue of 39 billion yuan in 2024, with a projected net profit of 3.508 billion yuan, reflecting a growth rate of 25.8% [5] Summary by Sections Company Overview - The company possesses rich mineral resources, with copper reserves of 6.05 million tons and lead reserves of 1.55 million tons [2] - The Yulong Copper Mine has a copper ore resource of 855 million tons, with an average copper grade of 0.66% [2] Production and Expansion - The company plans to produce 15.87 million tons of copper concentrate, 5.18 million tons of lead concentrate, and 10.94 million tons of zinc concentrate in 2024 [3] - The Yulong Copper Mine's processing capacity has been upgraded to 22.8 million tons per year [2] Financial Performance - The company forecasts revenues of 46.405 billion yuan, 48.761 billion yuan, and 51.084 billion yuan for 2024, 2025, and 2026 respectively [5] - The projected net profits for the same years are 3.508 billion yuan, 3.892 billion yuan, and 4.280 billion yuan, with corresponding PE ratios of 12.5, 11.3, and 10.3 [5] Shareholder Returns - The company plans to distribute a cash dividend of 5 yuan per 10 shares, totaling 1.1915 billion yuan, which accounts for 43% of the distributable profits for 2023 [4] - The company aims to distribute at least 30% of the average distributable profits over the last three years in cash dividends [4]