Chihong Zinc(SH:600497) Tebon Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a significant increase in net profit due to the elimination of substantial asset impairment losses from 2022, with a year-on-year growth of 113.53% in net profit for 2023 [4][5] - The company has made progress in resolving industry competition issues, which is expected to enhance its operational efficiency and profitability [5] - The company achieved record production levels for lead, zinc, and germanium products in 2023, indicating strong operational performance [4] Financial Performance Summary - In 2023, the company achieved revenue of 21.95 billion yuan, a year-on-year increase of 0.24%, and a gross profit of 3.53 billion yuan, up 1.4% year-on-year [4][6] - The net profit attributable to shareholders reached 1.43 billion yuan, reflecting a substantial increase of 113.53% year-on-year, while the net profit excluding non-recurring items was 1.47 billion yuan, up 143.37% year-on-year [4][6] - The company’s production capacity includes 420,000 tons/year for lead and zinc metals and 60 tons/year for germanium products, with production volumes for lead and zinc metals increasing by 7.3% and 20.0% respectively in 2023 [4][5] Earnings Forecast - The company is projected to achieve revenues of 22.4 billion yuan, 23.0 billion yuan, and 23.2 billion yuan for the years 2023, 2024, and 2025 respectively, with net profits expected to be 1.69 billion yuan, 2.21 billion yuan, and 2.27 billion yuan [5][6] - The earnings per share (EPS) are forecasted to be 0.33 yuan, 0.43 yuan, and 0.45 yuan for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (P/E) ratios of 17.13x, 13.09x, and 12.72x [5][6]