ZHUYE GP(600961) 华福证券·2024-05-19 08:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 13.87 CNY per share, indicating a potential upside from the current price of 10.89 CNY [15]. Core Views - The company reported a revenue of 19.41 billion CNY in 2023, a decrease of 4.9% year-on-year, primarily due to a decline in zinc prices and revenues from zinc and zinc alloy [12]. - The net profit attributable to shareholders for 2023 was 611 million CNY, reflecting a significant increase of 24% year-on-year [12]. - In Q1 2024, the company achieved a revenue of 4.43 billion CNY, a slight increase of 1.6% year-on-year, with a net profit of 159 million CNY, up 13.4% quarter-on-quarter [12]. Financial Summary - Revenue and Profitability: - 2023 revenue: 19,406 million CNY, with a growth rate of 24% expected in 2024 [2]. - 2023 net profit: 611 million CNY, with a projected increase to 708 million CNY in 2024 [2]. - EPS for 2023 was 0.57 CNY, expected to rise to 0.66 CNY in 2024 [2]. - Valuation Ratios: - P/E ratio for 2023 is 19.1, expected to decrease to 16.5 in 2024 [2]. - P/B ratio for 2023 is 3.2, projected to decline to 2.7 in 2024 [2]. - Production and Sales: - Zinc and zinc alloy production in 2023 was 662,000 tons, a year-on-year increase of 2.2% [13]. - Gold production increased significantly by 122.6% to 3.4 tons in 2023 [13]. - Cost and Margin Analysis: - The gross profit margin for 2023 was 8.5%, with gold contributing a gross profit margin of 21.2% [13]. - The company aims to leverage its full industrial chain advantages in lead and zinc mining and processing for future growth [14]. - Future Projections: - The company expects to achieve net profits of 710 million CNY in 2024, 830 million CNY in 2025, and 820 million CNY in 2026 [14]. - The target production for zinc products in 2024 is set at 642,000 tons, with a focus on increasing profitability through rising gold and silver prices [14].