NORINCO International(SZ:000065) GF SECURITIES·2024-04-25 05:32Investment Rating - The investment rating for the company is "Buy" with a current price of 12.46 CNY and a fair value of 14.32 CNY [1]. Core Views - The company reported a significant increase in Q1 performance, driven by high cargo volume at the Mandula port and foreign exchange gains, leading to a decrease in financial expense ratio [4]. - The steel demand outlook is positive, which is expected to support coal prices, indicating potential growth for the company's Mongolian mining business [4]. - The establishment of a wholly-owned subsidiary in Hungary aims to expand into the Central and Eastern European power market, with additional subsidiaries planned in Bosnia, UAE, and South Africa [4]. - Profit forecasts for the company are optimistic, with expected net profits of 1.15 billion CNY, 1.44 billion CNY, and 1.72 billion CNY for 2024, 2025, and 2026 respectively [4]. Financial Summary - In Q1 2024, the company achieved revenue of 5.014 billion CNY, a year-on-year increase of 4.6%, and a net profit attributable to shareholders of 264 million CNY, up 36.1% year-on-year [30]. - The operating cash flow for Q1 2024 was a net inflow of 339 million CNY, which is a decrease of 363 million CNY compared to the previous year [4]. - The company’s integrated coal project in Mongolia saw a throughput of 5.2 million tons in 2023, representing a 70% year-on-year increase, with sales of 5.31 million tons, up 194% year-on-year [4].