JCHX(603979) 浙商证券·2024-12-25 00:23Investment Rating - The report initiates coverage with a "Buy" rating for the company [5][7]. Core Views - The company is transforming into a diversified mining group, driven by a dual strategy of "mining services + resources" [3]. - The mining services segment is expected to benefit from increased capital expenditures by Chinese mining companies going overseas, creating a cluster effect in the industry [25]. Summary by Sections Resource Holdings - As of September 30, 2024, the company holds mineral resources including 249,000 tons of copper, 179 tons of silver, and 19 tons of gold, along with 21.4 million tons of phosphate rock (31% grade) [1]. - The Lonshi copper mine's eastern district has reported an additional resource of 26.048 million tons of ore, containing 104,000 tons of copper at an average grade of 3.99% [1][2]. Financial Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 9.6 billion, 11.8 billion, and 13.6 billion yuan, representing year-on-year growth of 29%, 23%, and 15% respectively [5][7]. - Net profit attributable to shareholders is projected to be 1.55 billion, 2.24 billion, and 2.58 billion yuan for the same years, with growth rates of 50%, 45%, and 15% respectively [5][7]. - Earnings per share (EPS) are expected to be 2.48, 3.59, and 4.14 yuan, with corresponding price-to-earnings (PE) ratios of 15.67, 10.83, and 9.39 [5][7]. Mining Services Business - The company is a leading player in the domestic mining services industry, with a compound annual growth rate (CAGR) of 20% in gross profit from 2018 to 2023, and a gross margin maintained between 26% and 29% [4]. - The mining services segment accounted for approximately 71% of total revenue in the first three quarters of 2024, with a gross profit of 1.4 billion yuan [19]. - The company has secured contracts totaling approximately 16.3 billion yuan, which is expected to support stable growth in the mining services business [25]. Market Outlook - The underground mining services market is expected to continue growing, with high-end service companies likely to increase their market share [26]. - The report highlights that the global copper supply is projected to remain tight, which may elevate copper prices in the medium to long term [58].