ZANGGE MINING(SZ:000408) Haitong Securities·2024-03-23 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a net profit of 3.42 billion yuan in 2023, a decrease of 39.52% year-on-year, with operating revenue of 5.23 billion yuan, down 36.22% year-on-year [5][6] - The company plans to distribute a total cash dividend of approximately 2.51 billion yuan for 2023, which accounts for 73.48% of the net profit attributable to shareholders [5] - The second phase of the Jilong Copper Mine expansion project has been approved, which is expected to increase the production capacity to 350,000 tons per day by the end of 2025 [5][6] Financial Summary - In 2023, the company achieved an operating income of 5.23 billion yuan, a decrease of 36.22% year-on-year, and a net profit of 3.42 billion yuan, down 39.52% year-on-year [7][14] - The fourth quarter of 2023 saw an operating income of 1.04 billion yuan, a decrease of 58.23% year-on-year, and a net profit of 0.45 billion yuan, down 69.69% year-on-year [5][7] - The projected net profits for 2024, 2025, and 2026 are 3.27 billion yuan, 3.56 billion yuan, and 3.81 billion yuan respectively, with corresponding EPS of 2.07 yuan, 2.25 yuan, and 2.41 yuan [6][14] Project Development - The company is making steady progress on key projects, including the Ma Mi Cuo Salt Lake project and various potassium salt mining projects in Laos, with significant milestones achieved in environmental assessments and exploration work [5][6] - The company has completed 9 out of 10 necessary approvals for the Ma Mi Cuo project and is advancing in other mining projects in Laos [5][6] Valuation - The company is expected to have a reasonable value range of 33.12 to 37.26 yuan based on a PE ratio of 16-18 times for 2024 [6][14]