ZANGGE MINING(000408) 国泰君安·2024-03-23 16:00Investment Rating - The report maintains a "Buy" rating for Zangge Mining [1][2] - Previous rating was also "Buy" [1] Core Views - The company is expected to generate significant investment returns, with cost advantages becoming more apparent [1] - The target price has been raised to 34.65 CNY from the previous forecast of 31.05 CNY [1] - The company's performance in 2023 is impacted by declining prices of potassium and lithium salts, but the Jilong Copper Mine is expected to provide substantial investment returns [1][2] - The cost advantage in lithium extraction from lakes is notable, with a continuous increase in resource self-sufficiency [1] Summary by Sections Financial Performance - In 2023, the company achieved revenue of 52.26 billion CNY, a year-on-year decrease of 36.22% [1] - The net profit attributable to shareholders was 34.20 billion CNY, down 39.52% year-on-year [1] - The company has adjusted its EPS forecasts for 2024-2025 to 1.65 CNY and 1.91 CNY respectively, with a projected EPS of 2.53 CNY for 2026 [1] Production and Sales - The production and sales of potassium chloride were 1.0942 million tons and 1.2934 million tons respectively, with a year-on-year change of -16.26% and +17.43% [1] - The average selling price of potassium chloride was 2709.64 CNY per ton, down 28.60% year-on-year, with a gross margin of 56.20% [1] Investment Projects - The company is progressing well with its potassium fertilizer projects, and the Jilong Copper Mine expansion has been approved [1] - The Jilong Copper Mine is expected to contribute significantly to the company's investment returns, with a projected annual output increase post-expansion [1] Market Outlook - The report indicates that the upward trend in copper prices is likely to enhance the company's investment returns [1] - The company is also focusing on enhancing resource self-sufficiency through strategic investments in lithium projects [1]