Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is positioned as a leader in the tin industry and is expected to benefit from the upward trend in tin prices due to supply vulnerabilities in Myanmar and the Democratic Republic of Congo [3][4] - In the first half of 2025, the company achieved revenue of 21.093 billion yuan, a year-on-year increase of 12.35%, and a net profit attributable to shareholders of 1.062 billion yuan, up 32.76% year-on-year [3] - The company plans to repurchase shares worth 100 to 200 million yuan to enhance investor confidence [4] Financial Performance - In 2025H1, the company produced 48,100 tons of tin, 69,800 tons of zinc, and 62,500 tons of copper, achieving 53%, 53%, and 50% of its annual production targets respectively [4] - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 2.381 billion, 2.624 billion, and 2.905 billion yuan, representing year-on-year growth of 64.9%, 10.2%, and 10.7% respectively [3] - The earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 1.45, 1.59, and 1.77 yuan, with corresponding price-to-earnings (P/E) ratios of 14.1, 12.8, and 11.6 [3][7] Production and Resource Utilization - The company is focusing on enhancing the comprehensive utilization of tailings resources and improving the value creation capability of existing mines [5] - The company has received a quota for tungsten mining in Yunnan, aiming to become a leading supplier of tin and indium products globally [5] Market Position - The company is recognized as a leader in the tin industry and is expected to benefit from the rising price levels of tin [3]

Group 1: Production and Financial Performance - In the first half of 2025, the company achieved a net profit attributable to shareholders of 10.2 billion to 11.2 billion CNY, representing a year-on-year increase of 27.52% to 40.03% [2] - The non-recurring net profit attributable to shareholders was 12.6 billion to 13.6 billion CNY, with a year-on-year growth of 26.20% to 36.22% [2] - The company is the only full-industry chain listed company in the tin industry in China, integrating exploration, mining, selection, smelting, deep processing, and supply chain [2] Group 2: Strategic Focus and Future Plans - The company aims to strengthen its position as a "value creation center" in the non-ferrous metal raw materials sector, focusing on resource expansion, modern mining, and raw material manufacturing [3] - Future plans include enhancing production capacity and cost control, geological exploration, and resource upgrading in existing mining areas [3] - The company will leverage the "Belt and Road" initiative to accelerate resource expansion efforts [3] Group 3: Resource Self-Sufficiency and Supply Chain Management - In 2024, the self-sufficiency rates for tin concentrate, copper concentrate, and zinc concentrate were 30.21%, 15.91%, and 72.72%, respectively [4] - The company plans to increase resource self-sufficiency through geological research and exploration activities [4] - The company will utilize various channels for tin smelting raw materials, including self-mining, domestic procurement, and processing exports [5] Group 4: Market Outlook and Pricing Strategy - The supply of tin raw materials remains tight, impacting smelting profits, with limited new supply expected in the Chinese market [5] - Demand for tin solder in traditional sectors is expected to maintain positive growth, supported by the automotive industry's increasing tin usage [5] - The company anticipates that tin prices will be influenced by cost structures and demand fluctuations [5] Group 5: Operational Efficiency and Cost Management - The company has implemented a "three-year action plan for cost reduction and efficiency enhancement" to ensure stable and optimal smelting operations [6] - Efforts are being made to improve the recovery of valuable metals from tailings, enhancing overall recovery efficiency [6] - The company is conducting technical research on tailings resource utilization, aiming to establish three tailings resource utilization bases [6] Group 6: Dividend Policy and Shareholder Engagement - The company plans to enhance shareholder returns by increasing cash dividend frequency and exploring share buybacks [6] - Future dividend policies will consider operational performance and long-term development while addressing reasonable shareholder demands [6]