NNCI(SH:600301) Huaxin Securities·2024-05-07 01:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [2][17]. Core Insights - The company has experienced significant growth in tin metal production, with expectations for continued price increases in tin, leading to enhanced production capabilities [2][17]. - In 2023, the company's operating revenue reached 2.924 billion yuan, a year-on-year increase of 5.66%, while the net profit attributable to shareholders was 314 million yuan, up 43.39% year-on-year [2]. - The first quarter of 2024 saw a substantial increase in operating revenue to 964 million yuan, representing a year-on-year growth of 61.61% [2]. - The company has rich resource reserves, with significant potential for production increases from its operating mines [2][33]. Summary by Sections Financial Performance - In 2023, the company reported an operating revenue of 2.924 billion yuan and a net profit of 314 million yuan, with a remarkable growth rate of 1629.8% expected for 2024 [19]. - The projected operating revenues for 2024, 2025, and 2026 are 3.742 billion yuan, 3.875 billion yuan, and 4.010 billion yuan, respectively [19]. - The diluted earnings per share (EPS) are forecasted to be 0.50 yuan for 2023, increasing to 0.92 yuan in 2024 [19]. Production and Resource Insights - The company achieved a significant increase in tin production, with a total output of 6,500.19 tons of tin concentrate in 2023, a year-on-year increase of 22.91% [2]. - The company operates two main mines, with substantial reserves and production capabilities for tin, zinc, lead, and antimony [3][33]. - The company is focusing on developing its copper and zinc resources, with projects aimed at enhancing production capacity [33]. Market Conditions - The report notes that the price of tin is expected to remain strong due to ongoing supply constraints, particularly from Myanmar's tin mines [40]. - The average price of tin in Q1 2024 was reported at 217,100 yuan per ton, reflecting a year-on-year increase of 3.92% [2].