Jinduicheng Molybdenum (SH:601958) KAIYUAN SECURITIES·2024-04-02 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][4] Core Views - The company benefits from high molybdenum prices, leading to continuous profit growth [4] - In 2023, the company achieved a revenue of 11.53 billion yuan, a year-on-year increase of 20.99%, and a net profit attributable to shareholders of 3.10 billion yuan, a significant increase of 132.19% year-on-year, marking the best performance since its listing [4] - The report anticipates a short-term decline in molybdenum prices for 2024, leading to revised profit forecasts for 2024-2026 [4] Financial Performance Summary - In 2023, the company's main mines processed 23.08 million tons of ore, a 4.37% increase year-on-year, with molybdenum products' annual production rising by 2.75% for molybdenum iron, 4.60% for ammonium molybdate, and 5.66% for molybdenum powder [5] - The revenue from molybdenum mining, smelting, and deep processing increased by 21.33% to 10.47 billion yuan, with a gross margin improvement of 14.28 percentage points to 52.55% [5] - The company forecasts net profits of 2.56 billion yuan, 2.73 billion yuan, and 2.88 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.79 yuan, 0.85 yuan, and 0.89 yuan [4][7] Market Outlook - The report indicates that the supply of molybdenum is expected to remain limited due to declining ore grades in existing mines, while demand is anticipated to grow due to the recovery in high-end manufacturing [6] - The structural support from stable supply and strong demand is expected to sustain molybdenum prices in the future [6]