Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [6][18]. Core Views - The company's performance in Q1 2024 was impacted by a decline in zinc prices and an increase in management expenses, but future growth potential remains promising [2][3]. - The company achieved a revenue of 4.672 billion yuan in Q1 2024, a year-on-year decrease of 19.6%, and a net profit attributable to shareholders of 488 million yuan, down 22.6% year-on-year [2][3]. - The production of core products showed steady growth, with zinc metal production increasing by 16.9% year-on-year [3]. Financial Performance Summary - Q1 2024 revenue: 4.672 billion yuan, down 19.6% YoY [2][3]. - Q1 2024 net profit: 488 million yuan, down 22.6% YoY [2][3]. - Management expenses increased by 40.5% YoY to 251 million yuan, primarily due to asset losses from the suspension of operations at Chihong Ronda Mining [3]. - Operating cash flow decreased by 45.67% YoY to 712 million yuan, attributed to falling product prices and increased procurement of quality raw materials [3]. Production and Growth Outlook - The company produced 67,000 tons of zinc metal in Q1 2024, a 16.9% increase YoY, and aims for a total metal production of 330,000 tons in 2024 [3]. - The integration of resources from Jinding Zinc Industry and Yunnan Copper Zinc Industry is progressing, with expectations for timely asset injections [3]. - The company is also focusing on internal resource accumulation and external acquisitions to enhance resource reserves [3]. Financial Forecast - Expected net profits for 2024-2026 are projected at 2.021 billion yuan, 2.188 billion yuan, and 2.292 billion yuan, representing year-on-year growth rates of 41.1%, 8.3%, and 4.8% respectively [4][3]. - The target price for the company's stock is set at 6.75 yuan, with a current price of 5.41 yuan [6].
2024年一季度点评:锌价下跌和管理费用增加拖累公司业绩,看好未来成长性