CMOC(603993) 西部证券·2025-02-28 08:25Investment Rating - The report gives a "Buy" rating for Luoyang Molybdenum (603993.SH) with a target price of 9.46 RMB, corresponding to a PE of 43 times and a predicted market value of 2005.94 billion RMB [2][21]. Core Viewpoints - Luoyang Molybdenum is positioned as a world-class resource leader, leveraging strategic acquisitions and a diversified, international approach to enhance its growth in the energy metals sector [1][2]. - The company has successfully completed a cost reduction plan, achieving savings of 500 million USD ahead of schedule, which is expected to accelerate profit release [2][18]. - The intrinsic value of the company's mineral rights is estimated at 1925.47 billion RMB, while its current market capitalization is around 1400 billion RMB, indicating potential for value re-evaluation [2][18]. Summary by Sections Company Overview - Luoyang Molybdenum has transformed from a regional mining company to a global leader through strategic acquisitions, including the purchase of NPM copper-gold mine and TFM copper-cobalt mine, among others [1][24]. - The company is now one of the largest producers of tungsten, cobalt, niobium, and molybdenum globally, with a diversified portfolio that includes significant assets in various countries [1][24]. Growth Strategy - The company focuses on both internal growth and external expansion, particularly in the energy metals sector, which is expected to drive long-term growth [20][22]. - The TFM project is projected to significantly increase copper and cobalt production, with future capacity reaching 40-50 million tons of copper and 3-4 million tons of cobalt annually [18][20]. Financial Performance - The report forecasts revenue growth from 68.68 billion RMB in 2019 to 134.30 billion RMB in 2023, with net profit expected to rise from 1.86 billion RMB to 8.49 billion RMB during the same period [4][2]. - The company's EPS is projected to increase from 0.09 RMB in 2019 to 0.39 RMB in 2023, reflecting strong earnings growth [4][2]. Market Position - Luoyang Molybdenum's strategic partnerships, such as with CATL for resource development, enhance its competitive position in the energy metals market [1][20]. - The company has established a global marketing network across five continents, which is expected to strengthen its influence in the resource industry [29][24].