Investment Rating - The report maintains a "Buy" rating for Luoyang Molybdenum (603993.SH) [6] Core Views - Luoyang Molybdenum has announced the acquisition of 100% equity in three gold mining assets in Brazil from Equinox Gold for a total consideration of $1.015 billion, expected to close in Q1 2026, pending regulatory approvals [1][6] - The acquisition includes Aurizona, RDM, and Bahia mining complexes, with a total gold resource of 156 tons and an estimated production of approximately 7.7 tons in 2024 [2][3] - The company is accelerating its gold asset layout, aiming for nearly 20 tons of annual gold production post-acquisition, which is expected to initiate a second growth curve for the company [3] Financial Projections - Revenue is projected to grow from 186.27 billion CNY in 2023 to 241.72 billion CNY by 2027, with a compound annual growth rate (CAGR) of approximately 7.7% [4] - Net profit is expected to increase significantly from 8.25 billion CNY in 2023 to 28.08 billion CNY in 2027, reflecting a CAGR of around 36% [4] - Earnings per share (EPS) are forecasted to rise from 0.39 CNY in 2023 to 1.31 CNY in 2027, with a price-to-earnings (P/E) ratio decreasing from 46.5 to 13.7 over the same period [4][10]

Group 1 - In 2024, the company achieved a revenue of 7.941 billion yuan, a year-on-year increase of 14.86%, and a net profit attributable to shareholders of 410 million yuan, a decrease of 18.62% compared to the previous year due to high investment income in the prior year [1] - The company turned around its net profit after deducting non-recurring items to 220 million yuan, indicating a significant improvement in its core profitability [1] - The company launched various new color and style products to meet the procurement needs of global apparel brands, leading to a record high yarn sales volume of 242,300 tons, an increase of 11.84% year-on-year [1] Group 2 - The gross margin for 2024 was 10.20%, an increase of 1.55 percentage points year-on-year, while the net profit margin decreased by 2.13 percentage points to 5.16% [2] - The company has maintained a unique operational model of "small batch, multiple varieties, and quick response" in the color-spun yarn industry for over 30 years, focusing on providing a full range of reliable quality color-spun yarns primarily made of pure cotton [2] - The company forecasts earnings per share (EPS) for 2025-2027 to be 0.33 yuan, 0.37 yuan, and 0.40 yuan, corresponding to price-to-earnings (PE) ratios of 14.6X, 13.3X, and 12.2X, respectively, and has given an initial investment rating of "Accumulate" [2]