Minsheng Securities·2024-04-23 12:00Investment Rating - The report maintains a "Recommended" rating for the company [2][7]. Core Views - The company reported a Q1 2024 revenue of 74.777 billion yuan, a year-on-year decrease of 0.2% but a quarter-on-quarter increase of 9.3%. The net profit attributable to shareholders was 6.261 billion yuan, representing a year-on-year increase of 15.1% and a quarter-on-quarter increase of 26.4% [1][7]. - The growth in net profit is primarily attributed to an increase in gross profit driven by rising prices and volumes of copper and gold [1][11]. - The company is expected to see continued growth in copper and gold production, with projected net profits of 28 billion yuan, 33.9 billion yuan, and 36.6 billion yuan for 2024, 2025, and 2026 respectively [2][11]. Summary by Sections 1. Event - The company released its Q1 2024 report, showing a revenue of 74.777 billion yuan and a net profit of 6.261 billion yuan, exceeding expectations [1][7]. 2. Copper and Gold Product Performance - The company experienced a year-on-year increase in net profit of 8.2 billion yuan, mainly due to a gross profit increase of 7.8 billion yuan from copper and gold [11][19]. - The production volumes for gold and copper increased by 5% each, while zinc production decreased by 9% [1][11]. 3. Gross Profit Analysis - The gross profit for Q1 2024 was 12.417 billion yuan, with a gross margin of 16.61%. The main contributors to gross profit growth were the copper and gold segments [14][19]. - The gross profit margin for gold and copper improved due to price increases outpacing cost increases [22][28]. 4. Expense Management - Total expenses decreased by 6.91 billion yuan in Q1 2024, with management and financial expenses showing significant reductions [30][33]. - The asset-liability ratio improved from 59.66% at the end of 2023 to 58.30% at the end of Q1 2024 [30][33]. 5. Non-Recurring Profit - Non-recurring profits increased due to a significant rise in income from funds occupied, contributing to an overall profit increase of 5.20 billion yuan [36][38]. 6. Cash Flow - The company reported a net cash inflow from operating activities of 8.172 billion yuan, indicating strong cash flow management [42][44]. - The financing activities generated a net cash inflow of 2.403 billion yuan, reflecting an increase in financing scale [42][44].