Dongxing Securities: Western Mining's profitability remains stable, maintaining a "Recommended" rating

Dongxing Securities Co., Ltd. research report points out that Western Mining achieved a net profit attributable to shareholders of 1.869 billion yuan in the first half of the year, a year-on-year increase of 15.35%; basic earnings per share increased by 15% to 0.78 yuan. Among them, the company's Q2 revenue and net profit attributable to shareholders were 15.078 billion yuan and 1.062 billion yuan, respectively. The company's mining capacity has steadily increased, the smelting system has been fully optimized, and the actions to improve quality and efficiency have been effectively executed, leading to continuous growth in the output of mineral and smelting products, driving stable expansion of the company's performance. Due to the fact that the two smelting units for smelting zinc and smelting lead are scheduled to be put into production in the fourth quarter of 2024, and are currently still in the capacity ramp-up phase, the planned output has not yet been achieved, and there is still room for improvement in the actual output at the company's smelting end. The company's profitability remains stable, and R&D investment has significantly increased. Maintain a "recommend" rating