Shanghai Securities·2024-05-03 04:00Investment Rating - The report assigns a "Buy" rating for the company [4][52]. Core Views - Zijin Mining is a leading global provider of copper and gold ore, with significant mining investments in China and 15 other countries. The company is expanding into the new energy and materials industry, holding substantial lithium resources [4][13]. - The copper segment has seen a remarkable production increase, making Zijin Mining the only company in China and Asia to surpass one million tons of copper production in 2023, ranking it among the top five globally [4][26]. - The gold segment has also shown strong growth, with a significant increase in gold production due to acquisitions and the resumption of operations at key mines [4][38]. Summary by Sections Company Overview - Zijin Mining operates in the exploration, development, and engineering design of various metal resources, including copper, gold, zinc, lithium, silver, and molybdenum. The company has major projects in 17 provinces in China and 15 countries abroad [4][13]. Financial Performance - In 2023, the company achieved a revenue of 2934.03 billion yuan, a year-on-year increase of 8.54%, and a net profit attributable to shareholders of 211.19 billion yuan, up 5.38% year-on-year [14][50]. - The company’s copper-related business contributed 47.19% to gross profit, while gold contributed 25.35% [16]. Copper Segment - The copper production reached 1,007,300 tons in 2023, a year-on-year increase of 11.13%. The company accounted for approximately 62% of China's total copper production [4][26]. - The report highlights the positive supply-demand dynamics in the copper market, driven by production disruptions and strong demand from the new energy sector [24]. Gold Segment - The company’s gold production increased to 67.73 tons in 2023, a rise of 20.17% year-on-year, positioning it among the top gold producers in China and Asia [4][38]. - The report notes that the gold market is entering a bullish phase due to rising inflation expectations and geopolitical instability [34]. Profit Forecast and Investment Recommendations - The forecast for net profit attributable to shareholders for 2024-2026 is 235.50 billion yuan, 300.80 billion yuan, and 356.13 billion yuan, representing year-on-year growth rates of 11.51%, 27.73%, and 18.39% respectively [5][52]. - The report anticipates that the company’s rapid expansion in the copper and gold sectors, combined with high commodity prices, will drive significant revenue growth [52].