CGN MINING(HK:01164) Guoxin Securities·2024-05-14 01:32Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Insights - The company holds significant uranium resources, being a natural uranium supplier with a 49% stake in two uranium companies in Kazakhstan and a 13.3% stake in Fission Uranium Corp [2]. - The demand for uranium is steadily increasing due to the company's supply to nuclear power plants operated by China General Nuclear Power Group, which has a substantial operational capacity [2][5]. - A strong global recovery in nuclear power is anticipated, with a projected increase in uranium demand to 188,000 tons by 2050, while the current supply is only 49,000 tons [2]. - The company is expected to see revenue growth driven by rising uranium prices, with forecasts indicating significant increases in revenue and net profit from 2024 to 2026 [2]. Summary by Sections Section 1: Uranium Resource Holdings - The company possesses "4+1" uranium resources, with a total equity resource of 39,000 tons of uranium and an equity production of 1,227 tons in 2023 [2][6]. Section 2: Supply and Price Outlook - The global uranium supply is expected to remain tight, with prices projected to stay high due to various geopolitical factors and production challenges [2][10]. Section 3: Competitive Position - The company ranks among the top producers globally, with production costs lower than comparable companies, enhancing its competitive edge [2][3]. Section 4: Financial Projections - Revenue forecasts for 2024-2026 are projected at HKD 12.38 billion, HKD 13.65 billion, and HKD 15.16 billion, respectively, with net profits expected to grow significantly during the same period [2][10].