Kings(603505)2024-11-01 07:19Investment Rating - The report gives an "Accumulate" rating for the company, indicating a positive outlook for future performance [5]. Core Viewpoints - Jinshi Resources is the largest specialized mining company in China's fluorite industry, with significant resource reserves and production capabilities. The company has expanded its business into downstream fluorochemical and lithium-containing materials sectors, leveraging technology for resource utilization [1][11]. - The company reported a total revenue of 1.119 billion yuan in the first half of 2024, a year-on-year increase of 100.2%, and a net profit of 176 million yuan, up 33.03% year-on-year [1]. - The company is positioned to benefit from the rising prices of fluorite and an expanding market for fluorochemical products, driven by its innovative low-grade fluorite processing technology [4][25]. Summary by Sections Company Overview - Jinshi Resources has developed into a leading player in the fluorite industry since its establishment in 2001, focusing on fluorite mining and sales. The company went public in 2017 and has since expanded into fluorochemical and lithium material sectors [11][12]. Business Development - The company is advancing into the second phase of fluorite development by utilizing low-grade fluorite resources, particularly through the Baiyun Obo project, which has a resource potential of 130 million tons [2][3]. - The company has established a flexible production line for aluminum fluoride, with an annual capacity of 300,000 tons, enhancing its operational efficiency [2][20]. Financial Performance - For the first three quarters of 2024, the company reported total revenue of 1.83 billion yuan, a year-on-year increase of 58.5%, while net profit was 266 million yuan, a slight decrease of 1.7% [25][27]. - The gross profit margin for self-produced fluorite concentrate was 51.9%, an increase of 4.6 percentage points compared to 2023, reflecting improved pricing dynamics in the market [28][29]. Future Outlook - The company aims to double its fluorite production capacity in Mongolia within 3-5 years, targeting an annual output of 500,000 tons [3][21]. - The projected net profits for 2024-2026 are estimated at 386 million, 598 million, and 876 million yuan, respectively, with significant growth rates anticipated [4].