[Headline announcement Nuggets]

BYD Electronics (00285): Profit attributable to shareholders for the first three quarters was 3,044 billion yuan, up 146.11% year on year

According to the Zhitong Finance App, BYD Electronics announced its results for the nine months ended September 30, 2023. The group achieved revenue of 92.144 billion yuan during the period, an increase of 29.5% over the previous year; profit attributable to equity owners of the parent company was 3,044 billion yuan, up 146.11% year on year; and basic profit per share was 1.35 yuan. Recently, the company announced the signing of an acquisition framework agreement to acquire JP's product manufacturing business in Chengdu and Wuxi with about RMB 15.8 billion (about US$2.2 billion) in cash, including parts manufacturing business for existing customers. This business is the largest cash transaction acquisition in the history of the company and even BYD.

Comment:The company came out of a wave of aggressive market aggressions in the early stages, then followed adjustments in the general market. The results announced this time are impressive. The company bought JP for 15.8 billion dollars. JP mainly manufactures Apple, and its production capacity in Chengdu and Wuxi is officially launched, which is expected to bring additional growth to the company. The company spans the two major foundries of Apple and Android. In terms of the fruit chain, there are currently two major products, the iPad and the watch. The iPad has a share of more than 30% this year, and there is a good chance that it will achieve a 50% share in the future. It plans to introduce the assembly of one more core product next year, and will also promote the shipment of parts. On the Android side, this is a big increase. Next year it will be around 40 billion dollars, including the assembly of 20 to 30 billion dollars and 10 billion more structural parts. Android's cooperation with customers is very deep, and it will grow from close to 40 billion next year to 60 billion. In terms of automotive electronics, sales to the BYD brand will increase rapidly starting next year, but external orders will soon catch up, and there should be a chance to reach 5 to 10 billion dollars in 2 to 3 years. New intelligent products: This year it will be close to 10 billion, next year it is expected to reach 15 billion, 20 billion in '22, and 20-25 billion in '23.

[Key Announcements Nuggets]

Zijin Mining (02899): Q3 net profit increased by 45.22% year-on-year, actively entering new energy projects

According to the Zhitong Finance App, Zijin Mining announced that as of October 30, 2023, the company has repurchased a total of 34.888 million A-shares, accounting for 0.13% of the company's total share capital. The maximum purchase price is 12.68 yuan/share, the lowest price is 7.89 yuan/share, and the total amount paid is 412 million yuan (excluding transaction fees). In the third quarter of 2023, the company's operating income was 74.67 billion yuan, up 4.10% year on year; net profit attributable to shareholders of listed companies was 5.86 billion yuan, up 45.22% year on year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 5.55 billion yuan, up 42.41% year on year.

Comment:Net profit growth in 2023Q3 in a single quarter was mainly due to increased production of mineral copper and mineral gold. The company's 2023Q3 copper and gold production reached a record high. The production and operation of the Camoa Copper Mine is normal and has achieved good results. In the first half of 2023, the Camoa Copper Mine produced 197,000 tons of copper. At present, the first and second phases have been completed and put into operation, with a production capacity of 450,000 tons of copper; the third phase and the supporting 500,000 ton copper smelter are expected to be completed and put into operation in the fourth quarter of 2024. At that time, production capacity will increase to more than 600,000 tons of copper; when the processing capacity of the project reaches 19 million tons/year and an annual copper production of more than 800,000 tons, it is expected to become the second largest copper mine in the world. In addition, the company is actively entering new energy projects, a series of landscape projects have been launched, and construction of a “zero carbon lithium extraction” source network load storage demonstration project for Lagocuo Lithium Salt Lake has commenced. It will achieve 100% renewable energy supply in 2025. In terms of lithium mining, we were invited to participate in the development of the Congolese gold Manono lithium mine. The Manono lithium mine is in a good lithium resource metering belt, and has huge prospecting potential, which will provide long-term growth for the company's lithium carbonate business. The large increase in the company's holdings highlights optimism about the future.

[List of important Hong Kong stock announcements]