YCC(SZ:000878) Minsheng Securities·2024-04-27 23:30Investment Rating - The report maintains a "Recommended" rating for Yunnan Copper Industry (000878.SZ) [1][2] Core Views - The company's Q1 2024 performance shows stable revenue growth of 4.9% year-on-year, with a revenue of 31.54 billion yuan, while net profit attributable to shareholders decreased by 5.6% year-on-year to 451 million yuan [1] - The report highlights the strategic acquisition of a higher stake in Diqing Nonferrous, increasing resource reserves, and the relocation project of Southwest Copper Industry, which is expected to enhance smelting capacity significantly [1] - The backing of the major shareholder, China Aluminum Group, suggests potential for future resource integration and asset injection [1] Financial Performance Summary - Q1 2024 revenue was 315.4 billion yuan, with a gross margin of 3.87%, reflecting a decrease of 0.77 percentage points quarter-on-quarter and 0.19 percentage points year-on-year [1] - The average price of electrolytic copper in Q1 2024 was 69,400 yuan per ton, showing a 1.9% increase quarter-on-quarter and a 1.2% increase year-on-year [1] - The forecast for 2024-2026 projects net profits attributable to shareholders of 2.256 billion, 2.484 billion, and 2.650 billion yuan respectively, with corresponding PE ratios of 13, 11, and 11 times [2][6]