HY(SH:601020) Hua Xia Shi Bao·2025-07-27 10:47Core Viewpoint - Huayu Mining is increasing its investment in the gold sector by acquiring an additional 11% stake in Guizhou Yatai Mining Co., Ltd., which will make it a controlling subsidiary with a 51% stake after the acquisition [2][5]. Group 1: Acquisition Details - Huayu Mining announced the acquisition of an 11% stake in Guizhou Yatai Mining for 300 million yuan, following a previous acquisition of 40% in 2020 [2]. - The previous acquisition price for the 40% stake was approximately 500 million yuan, which was a 35% reduction from a previously announced price [3]. - An adjustment clause was included in the previous agreement, which has now been triggered due to the completion of necessary mining project approvals [4]. Group 2: Valuation Adjustments - The re-evaluation of Yatai Mining's value has increased significantly, with a new valuation of 2.5229739 billion yuan, necessitating a cash compensation of approximately 509.19 million yuan to be paid to Guangxi Dilun [5]. - The valuation is expected to continue rising, with projections indicating a value of 3.4137652 billion yuan by April 30, 2025 [5]. Group 3: Financial Performance - Huayu Mining reported a total revenue of 1.614 billion yuan in 2024, a year-on-year increase of 85.27%, with a net profit of 253 million yuan, up 242.85% [6]. - The company anticipates a net profit of 173 million to 229 million yuan for the first half of 2025, representing an increase of 58.40% to 109.68% compared to the previous year [6]. Group 4: Market Trends - The mining sector is experiencing a trend of aggressive acquisitions, with other companies like Anning Co. and Yunnan Copper also making significant purchases [7]. - Analysts suggest that the current "frenzied mining" behavior is driven by strategic security, capital arbitrage, and policy pressures, indicating a fear-driven premium on upstream resources [8].