Huaan Securities·2024-06-14 03:00Investment Rating - The investment rating for Luoyang Molybdenum Co., Ltd. is "Buy" (maintained) [2] Core Views - Luoyang Molybdenum achieved a revenue of 186.27 billion yuan in 2023, a year-on-year increase of 7.68%, and a net profit attributable to shareholders of 8.25 billion yuan, up 35.98% year-on-year. In Q1 2024, the company reported a revenue of 46.12 billion yuan, a 4.15% increase year-on-year, and a net profit of 2.07 billion yuan, a significant rise of 553.28% year-on-year [5] - The TFM and KFM mixed ore projects have reached full production, accelerating the release of copper and cobalt production capacity. In 2023, the company produced 419,500 tons of copper (up 51% year-on-year) and 55,500 tons of cobalt (up 174% year-on-year), both hitting historical highs. The company is now among the top ten in global copper production and holds the top position in cobalt production [5][6] - The TFM mixed ore project has achieved a copper production capacity of 450,000 tons per year and cobalt capacity of 37,000 tons per year. The company plans to expand its capacity in Africa and initiate further expansion projects for TFM and KFM [6] - The company is expected to see net profits of 11.35 billion yuan, 13.07 billion yuan, and 14.79 billion yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 15.4, 13.4, and 11.8 [6] Financial Summary - In 2023, the company reported total revenue of 186.27 billion yuan, with a year-on-year growth of 7.68%. The net profit attributable to shareholders was 8.25 billion yuan, reflecting a 36.0% increase year-on-year. The gross profit margin was 9.7% [7] - For 2024, the projected revenue is 209.30 billion yuan, with a year-on-year growth of 12.4%, and a net profit of 11.35 billion yuan, indicating a 37.6% increase year-on-year. The expected gross profit margin is 11.6% [7] - The company’s total assets are projected to grow from 172.98 billion yuan in 2023 to 223.24 billion yuan by 2026, while total liabilities are expected to decrease from 101.01 billion yuan to 108.26 billion yuan over the same period [8]