Huaan Securities·2024-06-19 03:00Investment Rating - The investment rating for Shandong Gold is "Buy" (maintained) [1] Core Views - Shandong Gold reported a revenue of 59.275 billion yuan in 2023, an increase of 18% year-on-year, and a net profit attributable to shareholders of 2.328 billion yuan, up 86.84% year-on-year. For Q1 2024, the revenue was 18.957 billion yuan, a year-on-year increase of 44.73%, with a net profit of 700 million yuan, up 59.48% year-on-year [2] - The company's performance growth in 2023 was primarily driven by rising gold prices and continuous capacity release. The average international gold price in 2023 was 1940.54 USD/ounce, an increase of 8.0% year-on-year. The company managed to sell its gold at an average price 2.79 yuan/kg higher than the market average [2] - In Q1 2024, the average international gold price reached 2070 USD/ounce, a year-on-year increase of 10%, marking a historical high. The company's self-produced gold output in Q1 2024 was 11.91 tons, up 26.89% year-on-year [2] Summary by Sections Financial Performance - In 2023, Shandong Gold achieved a revenue of 59.275 billion yuan and a net profit of 2.328 billion yuan, with a year-on-year growth of 18% and 86.84% respectively. For 2024, the expected revenue is 69.567 billion yuan, with a net profit of 3.731 billion yuan [6] - The gross margin for 2023 was 16.6%, expected to rise to 19.1% in 2024. The return on equity (ROE) is projected to increase from 7.0% in 2023 to 10.1% in 2024 [6][7] Production and Capacity Expansion - The company is accelerating the development of several projects, including the Namutini mine project in Ghana and the expansion of the Linglong mining area. The expected gold production for 2024 is no less than 47 tons [4] - The company has successfully integrated mining rights for the Sanshandao gold mine and is actively advancing its construction, with production from this mine expected to contribute significantly to future output [4] Cost Management and Efficiency - In Q1 2024, the company achieved a gross margin of 14.56% and a net margin of 5.57%, with a notable reduction in management expenses [3] - The company continues to implement cost reduction and efficiency improvement measures, standardizing production and management processes [3]