Zijin Mining(02899) 第一上海证券·2024-04-08 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.67 HKD, representing a potential upside of 23.2% from the current price of 16.78 HKD [2][4]. Core Insights - The company's performance in 2023 met expectations, with significant increases in copper and gold production, and rising prices for these metals, indicating substantial future growth potential [1]. - The company achieved total revenue of 293.4 billion RMB in 2023, a year-on-year increase of 8.54%, and a net profit attributable to shareholders of 21.12 billion RMB, up 5.38% year-on-year, marking historical highs for both metrics [1]. - The report highlights the expected production plans for 2024, projecting copper production at 1.11 million tons and gold production at 73.5 tons, among other minerals, indicating a sustained growth trajectory [1]. Financial Performance Summary - Revenue for 2023 was 293.4 billion RMB, with a growth rate of 9% compared to 2022 [5]. - The net profit attributable to shareholders for 2023 was 21.12 billion RMB, reflecting a 5.4% increase from the previous year [5]. - The average selling price for copper concentrate was 49,406 RMB per ton, up 3.95% year-on-year, while the average selling price for gold bars was 433 RMB per gram, an increase of 12.28% [1][5]. - The company’s gross margin for 2023 was 15.81%, slightly improved from the previous year, while the mineral product gross margin was 49.09%, down approximately 5 percentage points [1]. Future Outlook - The report anticipates continued price increases for copper and gold due to tightening supply and recovering demand, which will support the company's profitability [1]. - The projected revenue for 2024 is 328.41 billion RMB, with net profit expected to reach 27.75 billion RMB, indicating a growth rate of 31.4% [5][6].