Hainan Mining(SH:601969) Xinda Securities·2024-05-05 08:06Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [8]. Core Views - The company reported a steady growth in performance for Q1 2024, with a year-on-year increase in net profit attributable to shareholders of 53.21% and a quarter-on-quarter increase of 70.43% [8]. - The company is progressing well with its projects, including the completion of significant mining and lithium hydroxide production facilities, which are expected to contribute positively to future revenues [8]. - The financial health of the company is solid, with a low debt-to-asset ratio of 39.01% in Q1 2024, indicating manageable financial risk [8]. Financial Summary - Total revenue for 2022 was 4,830 million, with a projected increase to 8,578 million by 2026, reflecting a compound annual growth rate (CAGR) of approximately 11.6% [1]. - Net profit attributable to the parent company is expected to grow from 625 million in 2023 to 1,204 million by 2026, with a notable increase of 30.6% in 2024 [1]. - The gross margin is projected to stabilize around 28.5% to 28.9% from 2024 to 2026, indicating consistent profitability [1]. - The company's return on equity (ROE) is expected to improve from 9.3% in 2023 to 14.8% by 2026, suggesting enhanced efficiency in generating profits from shareholders' equity [1]. - Earnings per share (EPS) is projected to rise from 0.31 in 2023 to 0.59 by 2026, reflecting strong earnings growth [1]. - The price-to-earnings (P/E) ratio is expected to decrease from 21.47 in 2023 to 12.22 by 2026, indicating a potentially undervalued stock as earnings grow [1].