Kings(SH:603505) Guolian Securities·2024-04-10 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 34.89 CNY for 2024, based on a PE of 30 times [67]. Core Insights - The company is transitioning towards a technology platform model, leveraging a "light asset technology to leverage heavy asset resources" business model, which is expected to enhance its operational efficiency and profitability [20][34]. - The report highlights that the company's net asset value may be underestimated due to early acquisition of mining rights and a unique business model that conceals some assets [39][95]. - The projected revenue growth for the company is significant, with expected revenues of 39.2 billion CNY in 2024, representing a 107% increase from the previous year [67]. Summary by Sections Financial Performance - The company reported a revenue of 1.896 billion CNY in 2023, with a projected increase to 3.921 billion CNY in 2024, reflecting a growth rate of 106.79% [53]. - The EBITDA is expected to rise from 669 million CNY in 2023 to 1.492 billion CNY in 2024 [53]. - The net profit attributable to shareholders is projected to reach 703 million CNY in 2024, up from 349 million CNY in 2023 [53]. Asset Valuation - The report indicates that the company's non-current assets to total assets ratio is relatively low, suggesting a "light asset" operational characteristic [24][21]. - The estimated PB (Price to Book) ratio is around 3.5, which is lower than the historical average of 5.5 during stable periods [95]. Market Position and Competitive Analysis - The company is compared with other non-metal and metal mining companies, showing superior ROA and ROE metrics, which indicate better operational efficiency [10][11]. - The report emphasizes the company's strategic positioning in the fluorite market, particularly in relation to the rising demand and potential price increases [39][42]. Future Outlook - The company is expected to benefit from rising fluorite prices, with projections indicating that for every 200 CNY increase in fluorite price, the profit from the fluorite segment will increase by 140 million CNY [67]. - The anticipated production from the company's projects in Mongolia is expected to contribute significantly to its revenue and profitability in the coming years [90][97].