Investment Rating - The report gives a "Buy" rating for Tongling Nonferrous Metals Group Co., Ltd. with a target price of 6.14 CNY per share based on a 15x PE for 2026 [1][4]. Core Views - The company is expected to see significant growth in its resource self-sufficiency rate due to the production ramp-up of the Mirador Phase II project, enhancing profitability [2][14]. - The processing segment is targeting high-end markets, with a product structure moving towards high-end development, supported by five major copper processing bases [2][67]. Summary by Sections Financial Performance - Revenue is projected to grow from 137.45 billion CNY in 2023 to 182.07 billion CNY in 2027, with a CAGR of approximately 18.7% from 2024 to 2025 [3]. - Net profit is expected to increase from 26.99 billion CNY in 2023 to 57.32 billion CNY in 2027, reflecting a significant growth rate of 54.1% in 2026 [3][13]. Resource Segment - The self-sufficiency rate is expected to rise to 10.3% in 2025, 12.0% in 2026, and 15.4% in 2027, driven by the Mirador Phase II project [10]. - The company produced 176.80 thousand tons of cathode copper in 2024, with a self-sufficiency rate of 8.8%, a notable increase from 2022 [2][49]. Processing Segment - The company has established a comprehensive processing capability for copper materials, including rods, wires, cables, sheets, and foils, with a focus on high-end markets [2][67]. - The production capacity for electronic copper foil is projected to reach 80 thousand tons per year by the end of 2024, with specific capacities for PCB and lithium battery copper foils [2][67]. Valuation and Target Price - The report compares Tongling Nonferrous with peers like Zijin Mining and Luoyang Molybdenum, concluding a target price of 6.14 CNY per share based on a 15x PE for 2026 [17].

Core Viewpoint - Baoding Technology (002552) reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit compared to the previous year [1] Financial Performance Summary - Total revenue for the first half of 2025 was 1.395 billion yuan, a decrease of 5.77% year-on-year [1] - Net profit attributable to shareholders was 21.98 million yuan, down 78.29% year-on-year [1] - The gross profit margin was 14.23%, an increase of 2.35% year-on-year, while the net profit margin plummeted to 0.72%, a decrease of 90.43% [1] - Total operating expenses (sales, management, and financial expenses) amounted to 110 million yuan, representing 7.87% of revenue, an increase of 13.83% year-on-year [1] - Earnings per share dropped to 0.05 yuan, a decline of 79.17% year-on-year [1] Accounts Receivable and Cash Flow - Accounts receivable accounted for 337.19% of the latest annual net profit, indicating a large volume of outstanding payments [1] - Operating cash flow per share was -0.48 yuan, a decrease of 229.76% year-on-year, highlighting cash flow challenges [1] Changes in Key Financial Metrics - Cash and cash equivalents decreased by 5.31% due to a reduction in bank deposits [11] - Accounts receivable increased by 15.48% primarily due to an increase in receivables from Jinbao Electronics [2] - Inventory rose by 12.68%, also attributed to Jinbao Electronics [2] - Interest-bearing liabilities increased by 31.61%, with short-term borrowings up by 7.61% and long-term borrowings up by 33.84% [4] Revenue Breakdown - Revenue from copper-clad laminate business decreased by 8.97%, while electronic copper foil revenue increased by 5.74% and finished gold business revenue grew by 20.18% [6] Expense Analysis - Sales expenses surged by 39.69%, driven by increased costs at Jinbao Electronics [7] - Financial expenses rose by 21.02%, while management expenses decreased by 4.68% [8] Tax and Investment Insights - Income tax expenses decreased by 45.51% due to reduced tax liabilities at the parent company [9] - Research and development expenses increased by 7.27%, reflecting higher direct material costs [9] Historical Performance Context - The company's historical financial performance has been weak, with a median Return on Invested Capital (ROIC) of 2.21% over the past decade and two years of losses since its listing [12]

Group 1 - The stock price of Tongguan Copper Foil is 30.57 yuan, down 2.11 yuan from the previous trading day [1] - The stock opened at 32.40 yuan, reached a high of 33.42 yuan, and a low of 30.31 yuan, with a trading volume of 486,438 hands and a transaction amount of 1.526 billion yuan [1] - Tongguan Copper Foil is primarily engaged in the research, production, and sales of electronic copper foil, which is widely used in the electronic information and new energy sectors [1] Group 2 - On August 21, the stock experienced rapid fluctuations, with a rebound of over 2% within 5 minutes at 9:35 AM, followed by a decline of over 2% within 5 minutes at 9:40 AM [1] - Data shows that on August 21, the net outflow of main funds from Tongguan Copper Foil was 161.18 million yuan, accounting for 0.64% of the circulating market value [1] - Over the past five trading days, the cumulative net outflow of main funds reached 233.06 million yuan, representing 0.92% of the circulating market value [1]

Fundraising Overview - The company raised a total of RMB 357,927.46 million by issuing 20,725.39 million shares at a price of RMB 17.27 per share, with actual funds received amounting to RMB 343,012.47 million after deducting issuance costs of RMB 14,914.99 million [1][2] - As of June 30, 2025, the company has utilized RMB 283,923.15 million of the raised funds, leaving a balance of RMB 60,389.39 million [2][5] - The company earned a total of RMB 5,183.21 million in interest and RMB 5,213.50 million in investment income from the special account for the raised funds, with a total balance of RMB 70,786.10 million in the account as of June 30, 2025 [2][5] Fund Management - The company has established a fundraising management system to ensure the proper storage, use, and supervision of the raised funds, adhering to principles of regulation, safety, efficiency, and transparency [3][4] - The company signed tripartite and quadripartite supervision agreements with its sponsor and banks to manage the raised funds in dedicated accounts [4] Fund Utilization - The company has invested RMB 263,923.15 million into relevant projects as of June 30, 2025, with no changes in the implementation location or method of the fundraising projects [5][6] - The company approved the use of RMB 5,636.08 million of raised funds to replace pre-invested self-raised funds for fundraising projects [7] - As of June 30, 2025, the company has not used idle raised funds to temporarily supplement working capital [8] Surplus and Excess Fund Usage - The company has permanently supplemented working capital with surplus funds amounting to RMB 25,419.90 million from a completed project [8] - The company has used part of the excess funds, totaling RMB 66,900.00 million, to permanently supplement working capital and for electronic copper foil construction projects [9][10] Profit Distribution - The company proposed a mid-year profit distribution plan to distribute cash dividends of RMB 0.2 per 10 shares, totaling RMB 16,520,312.88 million, with no stock dividends or capital reserve transfers [26][49] - The company reported a net profit of RMB 3,495.40 million for the first half of 2025, with retained earnings of RMB 36,088.38 million [53][54] Board and Supervisory Meetings - The company held board and supervisory meetings on August 15, 2025, to review and approve the mid-year report, profit distribution plan, and fundraising usage report [21][41][47] - All resolutions were passed unanimously, indicating strong support from the board and supervisory committee [24][43][31]

Financial Performance - The company reported a revenue of 299.72 million yuan, representing a year-on-year increase of 44.80% [1] - The net profit attributable to shareholders reached 34.95 million yuan, a significant increase of 159.47% compared to the previous year [1] - The net profit after deducting non-recurring gains and losses was 24.27 million yuan, up 135.43% year-on-year [1] - Basic and diluted earnings per share improved to 0.04 yuan, compared to a loss of 0.07 yuan in the same period last year, marking a 157.14% increase [1] - The weighted average return on equity rose to 0.65%, an increase of 1.71 percentage points from the previous year [1] Operational Highlights - The increase in revenue was primarily driven by the release of new production capacity and increased sales [2] - The company produced 35,078 tons of copper foil during the reporting period, with steady growth in the production of lithium battery copper foil of 5μm and below [2] - High-frequency and high-speed substrate copper foil experienced a supply-demand imbalance, with its production accounting for over 30% of the total PCB copper foil output [2] - The production of high-end HVLP copper foil grew rapidly, surpassing the total production level expected for the entire year of 2024 in the first half of the year [2] - As of the report date, the company has a total production capacity of 80,000 tons per year for electronic copper foil products [2] - The company has established long-term partnerships with well-known enterprises in the PCB copper foil and lithium battery copper foil sectors, obtaining supplier certifications from these companies [2]

Core Viewpoint - The significant increase in the stock price of Copper Crown Copper Foil is driven by the rapid growth in the electric vehicle and consumer electronics markets, which boosts the demand for lithium batteries and PCB copper foil [1] Group 1: Market Performance - As of 14:40, Copper Crown Copper Foil's stock price increased by 20.02%, reaching 29.92 yuan, with a total market capitalization of 24.804 billion yuan [1] - The stock has a sealing fund of 578 million yuan, a trading volume of 2.451 billion yuan, and a turnover rate of 11.02% [1] Group 2: Industry Drivers - The demand for lithium batteries and PCB copper foil is continuously rising due to the rapid development of the electric vehicle and consumer electronics markets, linking to the new energy materials industry and lithium battery supply chain themes [1] - The global transition to green energy is accelerating, expanding the application scenarios for electronic copper foil, benefiting from the high prosperity in the 5G communication and energy storage sectors [1] Group 3: Company Involvement - Copper Crown Copper Foil is primarily involved in sectors related to PCB concepts, new energy materials, AI concepts, lithium batteries, and power equipment [1]

Group 1 - The stock of Copper Crown Copper Foil reached a limit increase of 20.02% on August 13, trading at 29.66 yuan per share with a transaction volume of 2.36 billion yuan and a turnover rate of 10.65%, resulting in a total market capitalization of 24.589 billion yuan [1] - Copper Crown Copper Foil is a high-tech enterprise located in Chizhou, Anhui Province, primarily engaged in the production of electronic copper foil, holding a significant position and reputation in the industry [1] - As of the end of 2021, the company's electronic copper foil production capacity was 45,000 tons per year, with an additional 10,000 tons under construction, making it one of the largest electronic copper foil producers in China [1] Group 2 - As of July 18, the number of shareholders for Copper Crown Copper Foil was 48,500, with an average of 4,724 circulating shares per person [2] - For the first quarter of 2025, Copper Crown Copper Foil achieved an operating income of 1.395 billion yuan, representing a year-on-year growth of 56.29%, and a net profit attributable to shareholders of 4.7515 million yuan, which is a year-on-year increase of 117.16% [2]

Company Overview - Copper Crown Copper Foil's stock price as of August 6, 2025, is 24.10 yuan, down 2.19% from the previous trading day [1] - The stock opened at 24.50 yuan, reached a high of 25.15 yuan, and a low of 23.76 yuan, with a trading volume of 481,158 hands and a transaction amount of 1.166 billion yuan [1] - The company specializes in the research, production, and sales of electronic copper foil, which is widely used in electronic components and lithium batteries [1] Industry Context - The company operates within the electronic component manufacturing industry, with business activities spanning PCB and energy storage sectors [1] Market Activity - On the morning of August 6, the stock experienced a rapid rebound, reaching 24.85 yuan at 9:39 AM, with a rise of over 2% within 5 minutes and a transaction amount of 139 million yuan [1] - However, there was a net outflow of main funds amounting to 92.349 million yuan on that day, with a cumulative net outflow of 109.321 million yuan over the past five trading days [1]

Group 1: Dongwei Technology - Dongwei Technology's VCP equipment has been successfully developed since 2009 and was first applied in the iPhone 4 in 2010, achieving over 50% market share in PCB electroplating equipment [1] - The company anticipates increased demand for high-end electroplating equipment due to the investment boom in Southeast Asia and the growth of big data storage [1] - The profit margin for pulse electroplating equipment is approximately 40%, with potential for higher margins through large-scale production [1] - Orders for PCB electroplating equipment typically take 6 to 9 months from order to receipt, with smaller orders taking around 6 months and larger orders potentially extending to 1 to 1.5 years [1] - The company reported over 100% year-on-year growth in order value for vertical continuous electroplating equipment in the first half of this year [1] Group 2: Baoding Technology - Baoding Technology's main business includes electronic copper foil, copper-clad laminates, and gold mining, with its small loan company experiencing poor performance [2] - The operating performance of Jinbao Electronics is declining, with revenue and gross margin expected to continue decreasing in the first half of 2025 [2] - The company plans to develop high-quality customers for copper-clad laminate products and increase customer acquisition for copper foil products [2] - The first phase of the expansion project at Hexi Gold Mine is on schedule for completion in August, which will increase finished gold output [2] - The company has no current plans for equity incentive programs and operates without hedging business [2] Group 3: Investment Firm Overview - Juming Investment is a new private equity fund manager in China, focusing on "contrarian investment" and "growth investment" with a management scale exceeding 30 billion [3] - The core team consists of professionals from top public funds and asset management industries, with a strong academic background from prestigious institutions [3] - The firm has received multiple industry awards for its performance, including the Golden Bull Award and Yinghua Award, demonstrating its successful investment track record [3]

Company Overview - Baoding Technology Co., Ltd. was listed on the Shenzhen Stock Exchange in February 2011, initially on the SME board and now on the main board [1] - The company specializes in large castings and forgings, with a significant shift in control to Shandong Zhaojin Group in 2019 [1] - In 2022, the company underwent a major asset restructuring, acquiring 63.87% of Shandong Jinbao Electronics Co., Ltd., expanding into copper-clad laminates and copper foil business [1] - In 2023, the company transferred control to Shandong Jindu State Capital Investment Group and acquired 100% of Zhaoyuan Hexi Gold Mine Co., Ltd., entering the gold mining sector [1] Business Structure - The current main business segments are electronic copper foil, copper-clad laminates, and gold mining [1][2] - Jinbao Electronics, acquired in 2022, has seen a decline in performance due to increased competition and cyclical industry impacts [2] - For 2024, Jinbao Electronics is projected to produce 19.09 million sheets of copper-clad laminates and 1.56 million tons of copper foil, with a capacity utilization rate that is considered sufficient [2] Future Plans - The company aims to enhance market share for copper-clad laminates and develop high-quality customers for copper foil products, particularly targeting 5G communication applications [3] - Expansion at Hexi Gold Mine is ongoing, with completion expected in August 2025 [3] - The company has no current plans for stock incentive programs [5] Financial and Operational Insights - The tax rate for Hexi Gold Mine is set at 25%, and the company does not engage in hedging activities [5] - The cost of gold production is expected to remain stable post-expansion [5] Governance and Strategic Direction - The controlling shareholder, Jindu State Capital Investment Group, aims to position Baoding Technology as a state-owned asset management entity [3][4] - Conditions for the potential injection of assets from Zhongkuang Group include ensuring normal operations and clear ownership of the underlying businesses [4]