ZHONGJIN GOLD(SH:600489) Xin Lang Cai Jing·2025-08-29 04:28Core Viewpoint - The company reported strong financial performance in H1 2025, driven by rising gold prices, with a significant year-on-year increase in both revenue and net profit [1][5]. Financial Performance - In H1 2025, the company achieved revenue of 35.067 billion yuan, a year-on-year increase of 22.90%, and a net profit attributable to shareholders of 2.695 billion yuan, up 54.64% year-on-year [1]. - Q2 2025 saw revenue of 20.208 billion yuan, reflecting a year-on-year increase of 31.49% and a quarter-on-quarter increase of 36.00%. The net profit for Q2 was 1.656 billion yuan, marking a year-on-year increase of 72.57% and a quarter-on-quarter increase of 59.50% [1]. Production and Sales - The company produced 9.13 tons of mined gold and 19.32 tons of refined gold in H1 2025, representing year-on-year increases of 2.35% and 1.47%, respectively. Copper production was 38,100 tons, with a year-on-year decrease of 8.63% for mined copper and an increase of 13.09% for refined copper [2]. - Sales figures included 8.87 tons of mined gold and 18.10 tons of refined gold, with year-on-year increases of 5.97% and a slight decrease of 0.49%, respectively. Mined copper sales were 40,000 tons, down 7.62%, while refined copper sales were 19,060 tons, up 14.75% [2]. Exploration and Incident Impact - The company has intensified exploration efforts, achieving an increase in gold reserves of 13.82 tons in H1 2025, strengthening its resource base [3]. - An accident occurred at the company's subsidiary in Inner Mongolia on July 23, 2025, affecting production. The impact on H2 2025 performance is uncertain and will depend on the timeline for resuming operations [3]. Market Outlook - The company maintains a positive outlook on gold prices, anticipating that potential interest rate cuts could drive down real interest rates, benefiting gold [4]. - The Federal Reserve's signals for potential rate cuts are seen as favorable for gold, with expectations of continued upward trends in gold prices unless economic conditions change significantly [4]. Profit Forecast and Valuation - The company has revised its net profit forecasts for 2025-2027 upwards by 11.79%, 21.77%, and 28.18%, respectively, resulting in projected profits of 5.076 billion yuan, 7.022 billion yuan, and 8.383 billion yuan [5]. - The target price has been adjusted to 17.97 yuan, reflecting a price-to-earnings ratio of 17.11 for 2025, based on anticipated production increases from new mining projects [5].