Kings(SH:603505) GOLDEN SUN SECURITIES·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company achieved record high performance in 2023, with revenue of 1.896 billion yuan, a year-on-year increase of 80.5%, and a net profit attributable to shareholders of 349 million yuan, up 56.9% year-on-year [2]. - The company is expected to benefit from new projects in Inner Mongolia, contributing to growth in 2024 [2]. - The report highlights the scarcity of fluorite resources and increasing demand driven by the transition to new energy and refrigerants, suggesting a long-term upward trend in fluorite prices [2]. Financial Performance Summary - In Q4 2023, the company reported revenue of 741 million yuan, a quarter-on-quarter increase of 24.3%, but a net profit decline of 14.2% [2]. - The company’s fluorite concentrate production and sales reached 427,000 tons and 441,000 tons respectively in 2023, with an average price of 2,621 yuan per ton, reflecting a year-on-year increase of 254 yuan per ton [2]. - The report projects net profits for 2024, 2025, and 2026 to be 718 million yuan, 1.24 billion yuan, and 1.464 billion yuan respectively, with corresponding P/E ratios of 25.6, 14.8, and 12.6 [2][6]. Operational Highlights - The company has established a light asset model to leverage resources, with plans to acquire fluorite mines in Mongolia, aiming for a production capacity of 150,000 tons [2]. - The report indicates that the company’s single fluorite mine is expected to produce 400,000 to 500,000 tons in 2024, with additional contributions from associated projects [2]. - The company’s strategic initiatives include the efficient construction and orderly production of the Baotou "selection and processing integration" project, which is expected to enhance overall performance [2].