: Zhongyou Securities - "Buy" Rating for Zangge Mining, Smooth Expansion for Julong Copper Industry

China Post Securities' research report pointed out that Tangge Mining's profit from potassium chloride is stable, and Julong Copper Mine's performance is impressive. In the first half of 2025, Tangge Mining produced 485,200 tons of potassium chloride and sold 535,900 tons, achieving 48.52% and 56.41% of the annual production and sales targets respectively. The lithium carbonate production was 5,170 tons and sales were 4,470 tons, achieving 47.00% and 40.64% of the annual production and sales targets respectively. At the same time, due to the signing of large potassium fertilizer contracts in the first half of this year and the impact of overseas major manufacturers jointly reducing production, the domestic price of potassium chloride has increased significantly year-on-year. The average selling price of potassium chloride is 2,845 yuan/ton, a year-on-year increase of 25.57%, while the average sales cost is 996 yuan/ton, a year-on-year decrease of 7.36%. Due to supply and demand mismatch, the price of lithium carbonate fluctuated in the range of 60,000-80,000 yuan/ton in the first half of 2025. The average selling price of lithium carbonate is 67,470 yuan/ton, and the average sales cost is 41,478 yuan/ton, still maintaining a stable profit capability. With the stabilization of lithium carbonate prices and copper prices fluctuating at high levels, Julong Copper Industry's expansion is going smoothly. It is estimated that the company's net profit attributable to shareholders will be 3.711/5.477/5.958 billion yuan in 2025, with YOY growth rates of 44%, 48%, and 9%, corresponding to PEs of 20.65, 13.99, and 12.86. Therefore, a "buy" rating is recommended based on the above analysis.