Xin Lang Cai Jing·2025-04-22 10:40Core Viewpoint - The company reported strong financial performance in Q1 2025, driven by rising gold prices and effective cost management, maintaining a "buy" rating. Financial Performance - In Q1 2025, the company achieved revenue of 4.321 billion yuan, a year-on-year increase of 55.84% - The net profit attributable to shareholders was 694 million yuan, up 37.91% year-on-year - The net profit excluding non-recurring items was 704 million yuan, reflecting a year-on-year growth of 40.87% [1] Production and Cost Analysis - The company's gold production and sales volumes were 1.77 tons and 2.03 tons respectively, showing a year-on-year decline of 10.6% and 11.0% - The sales cost (after consolidation) was 147.87 yuan per gram, down 5.4% from 156.32 yuan per gram in the same period last year - Despite the decline in production and sales, the decrease in costs and the rise in gold prices contributed positively to the overall performance [1] Strategic Development - The company has a clear production plan, aiming for a gold output of 12 tons by the end of the 14th Five-Year Plan, with gold resources and reserves reaching 240 tons - In January 2025, the company signed an agreement to acquire a 52.0709% stake in Yunnan Western Mining Co., which holds exploration rights for gold mines in Yunnan Province - The integration of the Mangshi mining area is expected to enhance the company's production capacity [2] Market Outlook - The current upward trend in gold prices is expected to continue, with recent tariffs impacting the dollar's stability and increasing the appeal of gold as an asset - The uncertainty in the global political and economic landscape is likely to boost demand for gold as a safe-haven asset [2] Earnings Forecast and Valuation - Due to the better-than-expected performance of gold prices, the company has revised its EPS forecasts for 2025-2027 to 1.19, 1.36, and 1.84 yuan respectively, reflecting increases of 4.4%, 5.4%, and 12.2% - The target price for the company is set at 25.53 yuan, based on a PE ratio of 21.45 for 2025, maintaining a "buy" rating [3]