Core Viewpoint - Guangdong Mingzhu (600382.SH) is expected to report a significant increase in net profit for the first three quarters of 2025, driven by the "Expansion Project" which has boosted its iron concentrate business, with net profit projected to exceed 215 million yuan, representing a year-on-year growth of 8 to 10 times [1] Group 1: Financial Performance - The company anticipates a net profit attributable to shareholders of 215 million to 263 million yuan for the first three quarters of 2025, reflecting a year-on-year increase of 858.45% to 1071.44% [1] - The net profit after deducting non-recurring gains and losses is also expected to be in the range of 215 million to 263 million yuan, showing a year-on-year growth of 428.49% to 545.93% [1] - Mingzhu Mining's net profit is projected to reach 244 million to 298 million yuan, indicating a year-on-year increase of approximately 280.43% to 364.98% [1] Group 2: Business Operations - The increase in production and sales of iron concentrate is attributed to the new mining output from the Expansion Project and the completion of a technical upgrade of the washing stone production line, which has enhanced iron concentrate output [1] - The iron concentrate sales volume for Mingzhu Mining is expected to increase by approximately 212.49% year-on-year [1] - The overall growth in the iron ore business is supported by the recovery in the iron ore industry during the third quarter, contributing to the explosive growth in Guangdong Mingzhu's performance [1] Group 3: Market Context - Analysts note that the iron ore futures market experienced a strong upward trend in July, supported by "anti-involution" policies and a tight supply-demand balance, with continued strong performance into August and September [2] - The slight positive growth in terminal steel demand has shifted industry sentiment from pessimism to a more moderate outlook, leading steel mills to replenish their iron ore and coke inventories, which has bolstered mineral prices [2] - The pre-announced performance for the third quarter validates Guangdong Mingzhu's strategic foresight in its industry chain layout and highlights the value of upgrading subsidiary operations to strengthen its core business [2]

Core Insights - The company reported a revenue of 55.673 billion RMB for the six months ending June 30, 2025, representing a year-on-year increase of 1.99% [1] - Shareholder profit decreased by 5.6% to 2.429 billion RMB, with basic earnings per share at 2.19 RMB and an interim dividend of 0.65 HKD per share proposed [1] Group Performance - The company is focused on becoming a service provider based on natural gas, aiming to create multi-value for customers through smart innovation [1] - Natural gas retail volume reached 12.953 billion cubic meters, up 1.9% year-on-year [1] - The gross profit from the diversified energy business grew by 2.1%, while the smart home business gross profit increased by 4.9% [1] - The gross profit margin from diversified energy and smart home businesses rose by 1.4% to 39.6% [1] Customer Development - The company implemented differentiated development strategies to grow its customer base, focusing on cost reduction and stable gas supply for industrial clients [2] - New gas volume for industrial clients increased by 4.682 million cubic meters per day, while commercial clients added 1.604 million cubic meters per day [2] - The company developed 174,000 existing residential customers to counteract the decline in the new housing market, achieving a total of 692,000 residential installations [2] Resource Optimization - The company enhanced its resource structure, with resource volume increasing by 1.3 billion cubic meters year-on-year [3] - The company secured long-term resources from Sinopec, improving resource assurance capabilities [3] - To mitigate procurement foreign exchange risks, the company signed forward foreign exchange contracts, with a hedged amount of 624 million USD and a hedging ratio of 25.6% [3]