Kings(603505)2024-11-07 05:44Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage [1][9]. Core Insights - The company has achieved a significant revenue increase of 58.50% year-on-year for the first three quarters of 2024, reaching 1.83 billion yuan, primarily due to the production launch of the Baotou "selection and processing" project and increased sales of anhydrous hydrofluoric acid and fluorite powder [3]. - The net profit attributable to shareholders for the first three quarters of 2024 was 250 million yuan, reflecting a year-on-year increase of 1.70% [3]. - The company is actively advancing its global layout, with a focus on resource and technology integration, and has established a strong production capacity in the industry [8]. Financial Performance Summary - For Q3 2024, the company reported a revenue of 711 million yuan, a year-on-year increase of 19.39% and a quarter-on-quarter increase of 6.05% [4]. - The net profit attributable to shareholders for Q3 2024 was 83 million yuan, showing a year-on-year decline of 30.88% and a quarter-on-quarter decline of 22.71% [4]. - The company’s gross profit margin for the first three quarters of 2024 was 25.02%, down 17.40 percentage points year-on-year, while the net profit margin was 14.54%, down 8.91 percentage points year-on-year [3]. Production and Capacity - The company produced approximately 280,000 tons of fluorite products from its single mining operation from January to September 2024, with sales of about 250,000 tons, indicating a decline compared to the previous year [5]. - The Baotou project has successfully commenced production, with the company expecting to gradually release production capacity based on market conditions [7]. Earnings Forecast - The company is projected to achieve revenues of 2.755 billion yuan, 3.892 billion yuan, and 5.052 billion yuan for the years 2024, 2025, and 2026, respectively [9][10]. - The net profit attributable to shareholders is expected to be 358 million yuan, 599 million yuan, and 779 million yuan for the same years [9][10]. - The report anticipates a gradual improvement in the company's price-to-earnings (P/E) ratio, with estimates of 49, 29, and 22 times for 2024, 2025, and 2026, respectively [9].