Investment Rating - The investment rating for the company is maintained at "Buy" [1] Core Views - The company reported a year-on-year revenue increase of 7.67% to 10.581 billion RMB in H1 2025, with a net profit of 932 million RMB, reflecting a 3.27% increase [1] - The company has a strong dividend profile and is expected to maintain stable profitability due to high aluminum prices and limited production capacity [1] - The gross margin for H1 2025 increased by 2.03 percentage points year-on-year to 19.77%, while the expense ratio slightly increased [2] - The company has entered the trial production phase for a new zinc ingot project with a capacity of 150,000 tons, which is expected to contribute to future growth [3] - The company has successfully integrated resources, increasing its lead-zinc resource reserves by 280,000 tons in H1 2025, and aims to enhance its market competitiveness [4] - Profit forecasts for 2025-2027 are maintained at 1.938 billion RMB, 2.143 billion RMB, and 2.307 billion RMB respectively, with a target price of 6.95 RMB [5] Summary by Sections Financial Performance - H1 2025 revenue was 10.581 billion RMB, with a net profit of 932 million RMB, and Q2 revenue was 5.437 billion RMB, showing a 5.47% year-on-year increase [1] - The gross margin for H1 2025 was 19.77%, up 2.03 percentage points year-on-year, while the expense ratio for H1 was 6.52%, up 0.76 percentage points [2] Production and Capacity - The company currently has a lead-zinc metal capacity of 420,000 tons per year and has initiated trial production for a new 150,000-ton zinc ingot project [3] - The company has plans for further capacity expansion, including a project expected to add 40,000 tons of lead and 60,000 tons of zinc annually [3] Resource Management - The company achieved a net increase in lead-zinc resource reserves of 280,000 tons in H1 2025, maintaining a total lead-zinc resource of over 32 million tons [4] - Future strategic planning includes deepening its focus on lead, zinc, and germanium resources to enhance resource security and market competitiveness [4] Valuation and Forecast - The company’s net profit forecasts for 2025, 2026, and 2027 are 1.938 billion RMB, 2.143 billion RMB, and 2.307 billion RMB respectively, with an EPS of 0.38, 0.43, and 0.46 RMB [5] - The target price is set at 6.95 RMB, based on a PE ratio of 18.3 for 2025 [5]

Group 1: Company Performance and Strategy - The significant decrease in coal prices positively impacts the company's profitability due to high energy consumption in production costs [2] - As of May 20, 2025, the number of shareholders is 77,223 [3] - The company aims to expand upstream mining resources, increase production scale, and extend downstream silver deep processing projects to enhance the value chain [3] Group 2: Production Goals and Financial Projections - The production targets for 2025 include: 275,000 tons of processed materials, 1,000 tons of silver (including silver nitrate), 4 tons of gold, 100,000 tons of lead, 12,200 tons of zinc oxide, 3,200 tons of antimony ash, 2,000 tons of copper, and 2,500 tons of bismuth, with a total mining volume of 884,000 tons and lead-zinc ore extraction of 450,000 tons [4] - The expected revenue target for 2025 is 10 billion yuan [4] - The company plans to implement various measures to enhance performance, including expanding raw material procurement channels and improving metal recovery rates [4] Group 3: Future Development and Market Position - The company has a strategic plan focusing on "silver as the main product, dual-driven approach, three development paths, and four major sectors" to enhance profitability through capital operations [4] - The subsidiary Baoshan Mining plans to achieve a total mining volume of 884,000 tons and lead-zinc ore extraction of 450,000 tons in 2025 [4] - The company is working on the resumption of operations at two mining sites in Tibet, which are expected to contribute significantly to future profits [4]