According to the CICC research report, China Metallurgical's 4Q23 accrued asset impairment losses of 1,392 billion yuan and credit impairment losses of 3,543 billion yuan, which greatly hampered the performance of the whole year. In 2023, the company's engineering contracting business revenue was +9.3% year-on-year, and the amount of new contracts signed was about 1.42 trillion yuan, up 6.0% year on year. At the same time, the amount of new overseas contracts signed was 63.384 billion yuan, an increase of 43.72% over the previous year, a record high. It is believed that the company's core business is still expected to maintain steady growth. It is recommended to focus on subsequent mineral price recovery, as well as the potential price and profit flexibility of the Shandak copper and gold mine project, which benefits from rising copper prices and expansion of mining and production. Considering that the company's P/B valuation is currently at a historically low level, the company's A/H shares outperform the industry rating.