Core Viewpoint - The company reported strong financial performance for the first half of 2025, exceeding expectations with significant year-on-year growth in revenue and net profit [1][3]. Financial Performance - In H1 2025, the company achieved revenue of 21.09 billion yuan, a year-on-year increase of 12.35%, and a net profit attributable to shareholders of 1.06 billion yuan, up 32.76% year-on-year [1]. - For Q2 2025, the company reported revenue of 11.37 billion yuan, a year-on-year increase of 9.53% and a quarter-on-quarter increase of 16.82%. The net profit attributable to shareholders was 562 million yuan, reflecting an 18.76% year-on-year increase and a 12.61% quarter-on-quarter increase [1]. Production Volume - In H1 2025, the company maintained stable production levels, producing a total of 181,300 tons of non-ferrous metals, including 48,100 tons of tin, 69,800 tons of zinc, 62,500 tons of copper, and 937 tons of lead [1][2]. Resource Development - The company has received a quota of 688 tons for tungsten mining in 2025 and plans to enhance resource exploration and utilization, particularly in the Karafang mining area [2][3]. Price Trends - In Q2 2025, tin prices remained stable, while zinc and copper processing fees decreased. The average closing price for tin futures was 263,300 yuan per ton, a slight increase of 250 yuan per ton [2]. - The average processing fee for tin concentrate was 12,237 yuan per ton, down 947 yuan per ton, while the average processing fee for domestic zinc concentrate increased by 801 yuan per ton to 3,535 yuan per ton [2]. Market Outlook - The slow recovery of production in Myanmar is exacerbating the tight supply situation for tin, while the demand for consumer electronics is expected to increase, potentially leading to a rise in tin prices [3]. - The company is positioned to benefit from the anticipated increase in tin prices due to supply-demand imbalances [3].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [6]. Core Views - The company has significantly exceeded expectations in its non-recurring performance, with a net profit of approximately 1.062 billion yuan for the first half of 2025, representing a year-on-year growth of 32.76% [1]. - The company is a global leader in the tin and indium industries, benefiting from favorable resource endowments and expected increases in tin prices due to supply-demand imbalances [4]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a 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 [1]. - For Q2 2025, the company reported a revenue of 11.365 billion yuan, a year-on-year increase of 9.53% and a quarter-on-quarter increase of 16.82% [1]. Production and Resource Management - The company maintained stable production levels, with a total output of non-ferrous metals reaching 181,300 tons in the first half of 2025, including 48,100 tons of tin and 69,800 tons of zinc [2]. - The company plans to enhance resource exploration and utilization, particularly in the Kafang mining area, to improve its resource security and sustainable development [2]. Market Conditions - Tin prices remained stable in Q2 2025, with the average closing price for tin futures at 263,300 yuan per ton, reflecting a slight increase [3]. - The report highlights a potential strengthening of tin prices due to slow recovery in Myanmar's production and increasing demand from the consumer electronics sector [4]. Profit Forecast - The company is projected to achieve net profits of 2.317 billion yuan, 2.645 billion yuan, and 2.754 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 14X, 12X, and 12X [5].