SCG(SH:600170) Di Yi Cai Jing·2025-09-16 01:58Core Viewpoint - Shanghai Construction's recent stock price surge is primarily driven by market speculation regarding increased gold resources in its subsidiary, Zara Mining, despite the company clarifying that this information is not new [1][2]. Group 1: Stock Performance - Shanghai Construction's stock price reached a high of 3.21 yuan, marking a three-day consecutive increase, with a total market capitalization of 28.524 billion yuan [1]. - The stock has seen significant inflows from institutional investors, with net inflows of 333.6 million yuan on September 16, indicating strong market interest [1][3]. - Historical stock performance shows that since its peak in 2015, the stock has fluctuated between 2 and 3 yuan, with a recent recovery to 2.92 yuan as of September 15 [3]. Group 2: Financial Performance - For the first half of 2025, Shanghai Construction reported revenue of 105 billion yuan, a year-on-year decline of 28.04%, and a net profit of 7.1 million yuan, down 14.07% [4]. - The traditional construction business has faced significant pressure, with a 30% drop in revenue from construction contracting and a 12.5% decline in industrial revenue [4]. - In contrast, the gold sales business generated 403 million yuan in revenue, an 8.44% increase year-on-year, contributing 146 million yuan to gross profit, with a gross margin of 36.25% [4]. Group 3: Gold Resource News - Market speculation about an increase in gold resources at the Koka mine, owned 60% by Zara Mining, suggests an addition of 338,900 ounces, valued at approximately 6.03 billion USD (about 4.272 billion yuan) [2]. - The company clarified that the information regarding the gold resource increase was previously disclosed in 2020 and is not recent [2][4]. - The rising international gold prices, which have increased by 26.4% in 2024 and 26.5% in the first half of 2025, have created positive sentiment around the company's gold business [4].