CGN MINING(HK:01164) Tebon Securities·2024-03-24 16:00Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported a significant increase in revenue for 2023, achieving HKD 7.368 billion, a 101.04% increase from HKD 3.665 billion in 2022. However, net profit slightly decreased to HKD 497 million from HKD 515 million in 2022, primarily due to a fine impacting investment income [5][6] - The company is expected to benefit from rising uranium prices, with projections for uranium prices to stabilize around USD 80 per lbU3O8 from 2024 to 2026. The forecasted production for the company's mining rights is expected to increase from 1,385 tons in 2024 to 1,703 tons in 2026 [8][9] Summary by Sections Financial Performance - The company achieved a net profit of HKD 497 million in 2023, with a revenue increase of 101.80% year-on-year. The expected revenues for 2024, 2025, and 2026 are HKD 9.973 billion, HKD 10.625 billion, and HKD 11.273 billion respectively [9][15] - The average selling price of uranium was USD 64.42 per lbU3O8, while the average cost was USD 64.90 per lbU3O8, resulting in a gross loss of HKD 12 million from self-produced uranium sales [5][6] Production and Sales - The company sold 1,299 tons of self-produced uranium in 2023, a slight decrease of 1.7% from 2022, while international trade sales increased significantly to 5,670 tons from 3,055 tons in 2022, resulting in a revenue of HKD 5.672 billion [5][6] - The company holds 697 tons of uranium with a weighted average cost of USD 49.61 per lbU3O8 and has signed contracts for an additional 3,303 tons at a weighted average price of USD 56.78 per lbU3O8 [5][6] Investment and Cash Flow - The company reported an increase in operating cash flow to HKD 1.242 billion in 2023, with a net cash flow returning to positive at HKD 955 million [7][9] - The total equity resource amount at the end of 2023 was 39,000 tons of uranium, with a production capacity of 1,277 tons [6][9] Future Outlook - The company anticipates a continued increase in revenue and net profit, with projected net profits of HKD 977 million in 2024, HKD 1.037 billion in 2025, and HKD 1.122 billion in 2026, reflecting growth rates of 96.56%, 6.14%, and 8.22% respectively [8][9]