Investment Rating - The report maintains a "Buy" rating for the company with a target price of 12.60 CNY, down from the previous target of 15.30 CNY [1][11]. Core Views - The company's 2023 performance met expectations, with iron ore profits rising alongside prices. The completion of payments for the Jada lithium mine and the commencement of construction for the lithium carbonate project indicate the company's resource layout is beginning to materialize [1][11]. - The report highlights that the company's iron ore production continues to increase, with a projected net profit for 2024 and 2025 of 12.72 billion CNY and 14.54 billion CNY, respectively, and a forecast for 2026 of 15.75 billion CNY [1][11]. - The company is expected to maintain a higher-than-average valuation of 15 times PE, reflecting its stable profitability in the iron ore business and the potential growth from lithium mining [1][11]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 40.03 billion CNY, a year-on-year decrease of 3.7%, and a net profit attributable to shareholders of 11.41 billion CNY, an increase of 4.39% [1][11]. - The average selling price of iron concentrate was 893 CNY per ton, with a gross profit of 527 CNY per ton [1][11]. - The company’s iron ore production reached 3.76 million tons in 2023, an increase from the previous year [1][11]. Production and Sales - The company reduced its pellet production and sales volume, with total pellet sales of 534,900 tons in 2023, a decrease of 144,620 tons [1][11]. - The report notes that the company’s iron ore business profitability remains stable, supported by rising steel production in China [1][11]. Lithium Project Development - The company has successfully acquired land for the Hunan Jijiao Mountain lithium mine and has obtained exploration rights for the Jada lithium mine, with estimated lithium oxide resources ranging from 370,000 to 600,000 tons [1][11]. - The first phase of the Hunan Jijiao Mountain lithium mine is expected to produce 20,000 tons per year starting in 2024 [1][11]. Valuation Metrics - The report provides various financial metrics, including an expected EPS of 0.84 for 2024, with a projected increase to 1.04 by 2026 [1][11]. - The company’s net asset return rate is projected to be 19.4% in 2023, increasing to 17.6% by 2024 [1][11].
2023年年报点评：铁矿继续放量，碳酸锂资源开始落地