Sou Hu Cai Jing·2025-09-11 09:41Core Viewpoint - The report by Zhongyou Securities highlights that the rising gold prices are significantly boosting the performance of Shandong Gold, leading to a "buy" rating for the company [1]. Financial Performance - In H1 2025, Shandong Gold achieved a net profit attributable to shareholders of 2.808 billion yuan, with a total revenue of 56.766 billion yuan, marking a year-on-year increase of 24.01% [2]. - The total profit for H1 2025 was 5.483 billion yuan, reflecting a year-on-year increase of 95.23% [2]. - In Q2 2025, the company reported revenue of 30.83 billion yuan, a year-on-year growth of 14.97% and a quarter-on-quarter increase of 18.87% [2]. Production and Sales - The company produced 24.71 tons of gold in H1 2025, accounting for 17.72% of the domestic gold mining output, with overseas mines contributing 5.67 tons [3]. - The sales volume for H1 2025 was 23.60 tons, indicating a balanced production and sales situation, which, combined with rising gold prices, facilitated the release of company performance [3]. Project Development - In H1 2025, Shandong Gold completed 374,800 cubic meters of engineering work, with ongoing projects such as the deep well construction at Sanshan Island Gold Mine and resource integration projects at Jiaoji Gold Mine and Xincheng Gold Mine [4]. - The company is also advancing the production system testing and ramp-up at the Namutini Gold Mine project in Namibia, which is expected to start production in the first half of 2027 [5]. Profit Forecast - The company forecasts net profits of 6.935 billion yuan, 8.875 billion yuan, and 10.313 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 135%, 28%, and 16% [6].