Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% against the market benchmark within the next six months [17]. Core Insights - The company reported a revenue of 10.4 billion yuan for H1 2025, representing a year-on-year increase of 14.9%, and a net profit attributable to shareholders of 585 million yuan, up 57.8% year-on-year [2]. - In Q2 2025, the company achieved a revenue of 5.61 billion yuan, a year-on-year increase of 21% and a quarter-on-quarter increase of 17%, with a net profit of 310 million yuan, up 46% year-on-year and 12% quarter-on-quarter [2]. - The report highlights a significant increase in gold and silver prices, with gold prices rising by 32% compared to 2024, and silver prices increasing by 16% [4]. Financial Performance Summary - Zinc product revenue for H1 2025 was 4 billion yuan, down 27.4% year-on-year, with a gross profit of 148 million yuan, down 51.8% year-on-year, and a gross margin of 3.7%, down 1.87 percentage points [3]. - Gold ingot revenue reached 1.451 billion yuan, up 36.5% year-on-year, with a gross profit of 294 million yuan, up 311% year-on-year, and a gross margin of 20.27%, up 13.54 percentage points [3]. - Silver ingot revenue was 1.115 billion yuan, up 26.36% year-on-year, with a gross profit of 207 million yuan, up 8% year-on-year, and a gross margin of 18.59%, down 3.16 percentage points [3]. - Lead product revenue was 818 million yuan, up 0.5% year-on-year, with a gross profit of 48 million yuan, up 17.96% year-on-year, and a gross margin of 5.84%, up 0.86 percentage points [3]. Profit Forecast and Valuation - The company is expected to achieve net profits attributable to shareholders of 1.208 billion yuan, 1.277 billion yuan, and 1.329 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 11, 10, and 10 times, indicating good valuation attractiveness [4].

Investment Rating - The report maintains an "Outperform the Market" rating for the company [4][6][43]. Core Views - The company's net profit attributable to shareholders for the first half of 2025 increased by 57.8% year-on-year, driven by rising gold prices and a recovery in zinc smelting processing fees [1][8]. - The company achieved a revenue of 10.4 billion yuan in 2025H1, representing a 14.9% increase, with a net profit of 585 million yuan, and a non-recurring net profit of 594 million yuan, which is an 88.63% increase [1][8]. - The significant profit growth is attributed to the substantial rise in gold prices and the recovery of zinc concentrate processing fees starting from Q4 2024 [1][9]. Summary by Sections Financial Performance - In 2025H1, the average gold price on the Shanghai Gold Exchange was 722 yuan per gram, up 38.6% year-on-year, while the average silver price increased by 20.3% to 8171 yuan per kilogram [3][9]. - The company reported a gross profit of 1.27 billion yuan in 2025H1, a 44.9% increase from 870 million yuan in 2024H1 [9]. - Research and development expenses rose significantly to 160 million yuan in 2025H1 from 80 million yuan in 2024H1, indicating increased investment in R&D [3][9]. Production Capacity - The company has a production capacity of 860,000 tons for lead, zinc, and copper mining, with 680,000 tons for zinc products and 100,000 tons for lead products [2][8]. - The annual production of lead and zinc metals exceeds 40,000 tons, with gold production estimated at 1.8 to 2 tons and silver at approximately 60 tons [2][8]. Profit Forecast - The company is expected to achieve net profits of 1.19 billion yuan, 1.38 billion yuan, and 1.49 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 51%, 16%, and 8% [4][44]. - The diluted EPS for the same years is projected to be 1.11 yuan, 1.29 yuan, and 1.39 yuan, with corresponding P/E ratios of 11.0, 9.5, and 8.8 [4][44].

Group 1 - The company participated in the 2025 Investor Online Collective Reception Day on May 22, 2025, to enhance communication with investors regarding its operational status and strategic development plans [1][5] - The company reported that its top five customers contributed sales of 1,628.30 million yuan, accounting for 41.39% of the total sales in 2024 [2] - The company aims to strengthen its upstream resource investment as part of its long-term strategy, focusing on optimizing management and enhancing competitiveness [2][3] Group 2 - In Q1 2025, the company produced 162,700 tons of lead, 43,500 tons of cathode copper, 33.4 tons of gold, and 394.7 tons of silver, with sales figures of 146,600 tons of lead, 41,500 tons of cathode copper, 34 tons of gold, and 335.5 tons of silver [3] - The company achieved a revenue of 10.395 billion yuan in Q1 2025, representing a year-on-year growth of 21.29%, and a net profit of 229 million yuan, up 35.38% year-on-year [3] - The company plans to invest 650 million yuan in a new site for its advanced semiconductor precious metal materials project, which is currently in the preparatory stage [4]

Core Viewpoint - The company emphasizes that stable or rising product prices are beneficial for its operations, and it does not engage in speculative predictions about price levels [1][8]. Financial Performance - In 2024, the company achieved an operating revenue of 39.345 billion yuan, a year-on-year increase of 22.40% [2]. - The net profit attributable to shareholders was 808 million yuan, reflecting a growth of 38.88% compared to the previous year [2]. - Revenue from lead products reached 8.506 billion yuan, up 9.19% year-on-year; copper products generated 10.869 billion yuan, an increase of 11.56%; gold products saw revenue of 8.126 billion yuan, up 52.92%; and silver products brought in 10.012 billion yuan, a 29.16% increase [2]. Production and Capacity - In 2024, the company produced 555,600 tons of lead, 164,900 tons of cathode copper, 15.13 tons of gold, and 1,566.24 tons of silver, with respective year-on-year growth rates of 0.31%, 7.53%, 29.11%, and 2.25% [2]. - For 2025, the company plans to produce 702,000 tons of lead, 15 tons of gold, 1,700 tons of silver, and 155,000 tons of cathode copper [3][4]. Industry Outlook - The company asserts that there is no "oversupply" issue in the lead market, as domestic refined lead production is projected to decline by 6.7% in 2024 [6]. - Despite challenges from lithium batteries, the lead industry has seen production growth, with annual output exceeding 5 million tons in 2024 [7]. - The company maintains a strong market position, with over 70% of its production sold through long-term contracts [7]. Strategic Focus - The company aims to enhance production efficiency and deepen innovation, focusing on high-purity metals and high-value alloys [4]. - The company does not plan to make speculative predictions about gold prices, as it believes such actions could significantly impact finances [8]. - Currently, the company has no immediate plans for overseas expansion, prioritizing its core business and technological advancements [8].

Group 1 - The company achieved a revenue of 39.345 billion yuan in 2024, representing a year-on-year growth of 22.40% [1] - The net profit attributable to shareholders reached 807 million yuan, with a year-on-year increase of 38.88% [1] - The company plans to distribute a cash dividend of 2.25 yuan per 10 shares, totaling 245 million yuan, which accounts for 30.39% of the net profit [1] Group 2 - The company has been leading the advancement of domestic lead smelting technology and is recognized for its international leading position in this field [2] - The company has developed several core technologies, including oxygen bottom-blown oxidation and liquid high-lead slag direct reduction for lead smelting [2] - The company aims to create a "first-class non-ferrous metal new materials high-tech industrial group" and is focused on accelerating its transformation towards high-end, intelligent, and green development [2]