Core Viewpoint - The company has experienced significant performance growth in Q2 2025, driven by its tungsten-molybdenum and cathode businesses, with multiple projects underway across various segments, indicating a potential for diversified growth as demand recovers [1]. Financial Performance - In H1 2025, the company achieved a net profit attributable to shareholders of 972 million yuan, a year-on-year decrease of 4.37%. In Q2 2025, the net profit was 581 million yuan, down 1.41% year-on-year but up 48.65% quarter-on-quarter, aligning with expectations [2]. - The company adjusted its EPS forecasts for 2025-2027 to 1.22, 1.31, and 1.42 yuan respectively, reflecting potential impacts from international trade tensions and declining photovoltaic demand [2]. - The target price was raised to 36.6 yuan, based on a 30x PE for 2025, up from the previous 24.11 yuan [2]. Segment Performance - In H1 2025, profits from the tungsten-molybdenum, energy new materials, rare earth, and real estate segments were down 10.94%, up 35.47%, up 6.71%, and down 1.35 million yuan respectively, with total profits of 1.268 billion, 339 million, 125 million, and a loss of 41 million yuan [2]. - The decline in tungsten-molybdenum performance was attributed to resource tax payments and decreased revenue and margins from fine tungsten wire [2]. - The energy new materials segment saw significant profit growth due to increased demand for lithium iron phosphate and lithium cobalt oxide products [2]. - The rare earth business benefited from overseas market expansion and optimized customer structure, leading to substantial profit increases [2]. Q2 Segment Highlights - In Q2 2025, profits from the tungsten-molybdenum, energy new materials, rare earth, and real estate segments increased by 40.2%, 73.4%, decreased by 10.6%, and a slight profit of 1 million yuan respectively, totaling 740 million, 215 million, 59 million, and a loss of 20 million yuan [3]. - Despite a decrease in fine tungsten wire sales, the tungsten products' prices rose, and the output of smelting products increased, contributing to profit growth in the tungsten-molybdenum segment [3]. - The energy new materials segment saw high growth in sales of lithium cobalt oxide and ternary materials, leading to significant profit increases [3]. - The rare earth segment experienced a slight decline in performance due to rising raw material prices, despite increased sales of magnetic materials [3]. Future Outlook - The company is actively developing multiple projects from resource extraction to deep processing, indicating a strong potential for diversified growth across its business segments [1][3]. - The Ninghua Hangluokeng tungsten mine is undergoing resource verification and deep exploration, with potential for increased reserves, while the oil mapo tungsten-molybdenum mine is under construction with an expected output of 3,200 tons of tungsten concentrate upon completion [3].

Core Viewpoint - The company experienced a decline in revenue in 2024, but its gross margin improved due to lower raw material costs, while the tungsten-molybdenum segment showed resilience with increasing profit contribution [2][4]. Group 1: Sales Performance - In 2024, the company sold 7,352 tons of hard alloys, an increase of 8.35% year-on-year. Cutting tools sales reached approximately 51.3 million units, up 2.22% [1]. - The sales of fine tungsten wire reached 135.4 billion meters, a significant increase of 55.97%, driven by market demand growth and optimized marketing strategies [1]. - Lithium cobalt oxide sales were 46,200 tons, up 33.52%, attributed to the recovery in the 3C industry and the launch of new 4.5V high-voltage lithium cobalt oxide products [1]. - Sales of ternary materials reached 51,400 tons, an increase of 37.45%, due to accelerated demand in the new energy sector [1]. - In Q1 2025, fine tungsten wire sales dropped to 32.5 billion meters, a year-on-year decrease of 5%, with revenue declining by 28% due to reduced demand in downstream photovoltaic applications [1]. Group 2: Financial Performance - The company achieved operating revenue of 35.196 billion yuan in 2024, a decrease of 10.66%. Tungsten-molybdenum revenue was 17.414 billion yuan, up 5.78%, while energy new materials revenue fell by 23.19% to 13.297 billion yuan [2]. - The overall gross margin for 2024 was 18.03%, an increase of 1.51 percentage points, primarily due to lower costs of energy new materials and rare earth raw materials [2]. - In Q1 2025, the company reported operating revenue of 8.376 billion yuan, a year-on-year increase of 1.29%, with rare earth revenue rising by 46.36% due to increased sales of deep-processing magnetic materials [2]. - The gross margin for Q1 2025 was 16.47%, a decrease of 0.22 percentage points compared to the previous year [2]. Group 3: Cost and Profitability - The company's expense ratio increased to 9.04% in 2024, with selling expenses rising to 1.17% and management expenses to 2.86% due to higher employee compensation and depreciation [3]. - The net profit attributable to shareholders for 2024 was 1.728 billion yuan, an increase of 7.88%. However, in Q1 2025, net profit decreased by 8.46% to 391 million yuan [3]. - The cash flow remained stable, with a cash collection ratio of 0.8545, down 1.45 percentage points, and a cash payment ratio of 0.7924, down 0.73 percentage points [3]. - The company's asset-liability ratio decreased to 46.44%, down 5 percentage points, due to a significant increase in cash and cash equivalents [3]. Group 4: Investment Outlook - The company has a significant advantage in the tungsten-molybdenum sector, with a continuous increase in profit contribution, indicating a long-term positive trend [4]. - Projected net profits for 2025-2027 are 1.984 billion, 2.301 billion, and 2.531 billion yuan, respectively, maintaining a "strongly recommended" rating [5].