YCC(SZ:000878) GF SECURITIES·2024-03-30 16:00Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 16.39 CNY per share based on a 14x PE for 2024 [4][10]. Core Insights - The company reported a 2023 revenue of 147 billion CNY, a year-on-year increase of 9%, while the net profit attributable to shareholders was 1.58 billion CNY, a decrease of 13% year-on-year. In Q4 2023, revenue was 36.4 billion CNY, down 1% year-on-year and 8% quarter-on-quarter, with a gross profit of 1.787 billion CNY, up 18% year-on-year and 13% quarter-on-quarter [2][3]. - The decline in net profit in Q4 was primarily due to asset impairment losses of 724 million CNY and an increase in management expenses [2]. - The company optimized its copper mining costs in 2023, with production of copper concentrate and cathode copper both increasing by 2% year-on-year [2][3]. Financial Summary - The company achieved an EBITDA of 5.307 billion CNY in 2023, with a projected EBITDA of 6.421 billion CNY in 2024 [3]. - The earnings per share (EPS) for 2023 was 0.79 CNY, with forecasts of 1.17 CNY, 1.18 CNY, and 1.20 CNY for 2024, 2025, and 2026 respectively [3][9]. - The company’s debt-to-asset ratio was 56.4% at the end of 2023, a decrease of 3.4 percentage points from the end of 2022 [2][3].