megamillionspayouttoday|中矿资源(002738)：多资源布局开花 业绩环比提升

Organization: Guotai Junan

Researcher: Yu Jiayi / Ning Ziwei

This report is read as follows:

The downward price of lithium reduces profits.MegamillionspayouttodayHowever, the company continues to promote the cost reduction of lithium salt, and increase the layout of copper resources to enrich the source of revenue growth.

Main points of investment:

Maintain the "overweight" rating. In 2023, the company's operating income was 6.013 billion yuan (year-on-year-25.22%); the net profit returned to the mother was 2.208 billion yuan (- 32.98% compared with the same period last year); the operating income of Q1 in 2024 was 1.127 billion yuan (year-on-year-45.63%, month-on-month + 11.81%); and the net profit was 256 million yuan (year-on-year-76.63%, month-on-month + 85.51%). Based on the downward price of lithium, the EPS of the revised company in 2024-2025 was 1.75 EPS 1.93 yuan (formerly 4.22 pound 5.00 yuan), and the EPS of the company in 2026 was 2.59 yuan. With reference to the industry average and the valuation premium brought about by the company's production expansion and capital reduction, the company is valued at 25 times PE in 2024, lowering the target price to 43.75 yuan and maintaining the "overweight" rating.

The downward price of lithium affects performance, and cesium rubidium salt business contributes stable revenue. In 2023, the company's output / sales volume of lithium salt products was 1.84 million tons, compared with the same period last year. The output / sales volume of lithium salt products was-19.51% qure 28.09%, cesium-rubidium fine chemical products 0.100 million tons, year-on-year + 21.09% picks 25.92%, cesium formate products output / sales 506.962964.35 bbl, year-on-year-9.86% picks 13.43%. The fall in lithium price led to a decline in revenue and net profit of the company. in addition, changes in the exchange rate between RMB and Jinyuan resulted in exchange gains and losses of 168 million yuan.

The estimated reserves of Bikita resources have been improved and the lithium salt project has been expanded smoothly. The company reevaluates the Bikita mine resources, with a total of 11 in the east and west regions.Megamillionspayouttoday, 3.35 million tons of ore, with an average grade of 1.03%, about 2.8847 million tons of LCE, an increase of 1.0469 million tons of LCE over the same period last year. Chunpeng Lithium Industry has an annual output of 35000 tons of high purity lithium salt, which was put into production in February 2024. At present, the company has a total capacity of 66,000 tons / year of battery-grade lithium salt. We will continue to reduce costs and increase efficiency, and the performance in the first quarter of 2024 increased month-on-month.

Accelerate the distribution of copper resources and enrich the source of revenue growth. In January 2024, the company acquired the Tsumeb copper smelter for US $49 million, and through technology upgrading, it is expected that the concentrate processing capacity will reach 370000 tons per year; in March 2024, the company's wholly-owned subsidiaries intend to acquire 65% of Junction and own 65% of the Kitumba copper project. The proven copper reserves in the mining area are 27.9 million tons, with a copper metal content of 614000 tons and an average grade of 2.20%.

Risk hint. The sales of new energy vehicles are lower than expected, and the progress of production capacity construction is not as expected.