HANRUI COBALT(300618) 民生证券·2024-05-12 09:30Investment Rating - The report gives a "Cautious Recommendation" rating for the company [5][81]. Core Views - The company has experienced a decline in performance due to falling cobalt prices, despite an increase in copper profitability. The report highlights that copper sales and profits have significantly improved, while cobalt products have suffered due to price drops [16][44][58]. Financial Performance Summary - In 2023, the company achieved revenue of 4.79 billion yuan, a decrease of 5.9% year-on-year, and a net profit attributable to shareholders of 138 million yuan, down 34.9% year-on-year. The fourth quarter of 2023 saw revenue of 1.07 billion yuan, a year-on-year decline of 4.9% [14][17]. - For 2024, the company is projected to generate revenue of 5.69 billion yuan, with a growth rate of 18.9%, and a net profit of 301 million yuan, reflecting a significant recovery [2][17]. Business Analysis - The copper segment has shown strong performance, contributing significantly to revenue, with copper revenue reaching 2.76 billion yuan in 2023, up 9.3% year-on-year, while cobalt revenue fell to 1.80 billion yuan, down 29.4% [36][44]. - The company has expanded its copper production capacity, with a production increase of 24.6% year-on-year, and expects to benefit from high inventory levels in 2024 [44][58]. Future Outlook - The company is expanding its copper and cobalt production, with new projects in Indonesia for high-nickel production expected to enhance growth potential. The report anticipates that copper prices will remain favorable in the long term, while cobalt prices have likely reached a bottom [58][68]. - The projected net profits for 2024-2026 are 300 million, 530 million, and 720 million yuan, respectively, with corresponding PE ratios of 34, 19, and 14 [81].