Guoxin Securities·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for Luoyang Molybdenum (603993.SH) [1][4][19] Core Views - The company achieved a 36% year-on-year growth in net profit for 2023, with total revenue reaching 186.3 billion yuan, an increase of 7.7% [1][5] - Significant projects, including the TFM mixed ore and KFM copper-cobalt mines, have been completed, positioning the company for substantial production increases in the coming years [1][2][5] - The company aims to produce 800,000 to 1,000,000 tons of copper and 90,000 to 100,000 tons of cobalt annually over the next five years, leveraging its existing production capacity [2][5][19] Financial Performance - In 2023, the company reported a net profit of 8.25 billion yuan, with a significant increase in Q4 net profit to 5.81 billion yuan, marking a 663% increase year-on-year [1][5] - The operating cash flow for 2023 was 15.54 billion yuan, reflecting a 0.6% increase [1][5] - The projected net profits for 2024-2026 are 10.08 billion, 11.33 billion, and 11.56 billion yuan, respectively, with expected growth rates of 22.2%, 12.4%, and 2.0% [2][19] Production Outlook - The company is set to achieve copper production of over 520,000 tons and cobalt production of over 60,000 tons in 2024 [1][5] - The completion of major projects is expected to double copper production within two years, enhancing the company's position among the top global copper producers [2][19] Market Position - Luoyang Molybdenum is anticipated to become one of the top ten copper producers globally and the largest cobalt producer, driven by its strategic projects and production capacity [2][19]