JINHUIINC.(SH:603132) Tebon Securities·2024-03-24 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its performance and potential growth [17][30]. Core Insights - The company reported a revenue of 1.28 billion yuan for 2023, a year-on-year increase of 3.5%, while the net profit attributable to shareholders decreased by 27.02% to 340 million yuan due to increased costs and changes in mining rights policies [3][28]. - The company plans to distribute a cash dividend of 2.40 yuan per 10 shares, totaling 235 million yuan, which represents 68.43% of its net profit [3]. - The integration of the Jianglu mining area is underway, with a planned investment of approximately 5 billion yuan to increase processing capacity from 1.5 million tons to 4.5 million tons per year [9][17]. Financial Performance - In Q4 2023, the company achieved a revenue of 440 million yuan, a quarter-on-quarter increase of 48.71%, and a net profit of 98 million yuan, a slight increase of 6.79% [3]. - The company’s gross profit margin for 2023 was 54.7%, with a net profit margin of 26.7% [14]. - The forecast for 2024-2026 indicates expected revenues of 1.47 billion yuan, 3.14 billion yuan, and 3.75 billion yuan, with net profits of 440 million yuan, 990 million yuan, and 1.19 billion yuan respectively, reflecting significant growth rates [17]. Market Context - The company operates in the non-ferrous metals industry, specifically focusing on lead and zinc mining [9]. - The average price of lead ingots in 2023 was 15,612 yuan per ton, a 3.0% increase from 2022, while the average price of zinc ingots decreased by 14.3% to 21,627 yuan per ton [28]. - The company’s production of zinc concentrate increased by 18.11% to 63,900 tons, and lead concentrate production (including silver) rose by 22.08% to 21,300 tons in 2023 [28].