Yulong Gold(SH:601028) Xinda Securities·2024-07-15 09:30Investment Rating - The report maintains a positive outlook on Yulong Co., Ltd. with a focus on its strategic partnership with Bato Gold for operational management and future restructuring of the Bato Gold Mine [22]. Core Viewpoints - Yulong Co., Ltd.'s subsidiary, Yuxin Holdings, has signed a management agreement with Bato Gold to assist in the operation of the Bato Gold Mine, which is expected to enhance economic efficiency and resource integration capabilities [22]. - Bato Gold holds a significant gold resource of 3.37 million ounces (approximately 104.82 tons) according to JORC standards, indicating substantial mining potential [22]. - The company plans to divest from trading operations and concentrate on its core mining business, focusing on gold and new energy materials, to reinvest funds into mining construction and acquisitions [22]. Financial Summary - The projected net profit for Yulong Co., Ltd. for 2024-2026 is estimated at 631 million, 689 million, and 755 million CNY, respectively, with corresponding P/E ratios of 18.4, 16.9, and 15.4 [15][23]. - The total revenue for 2023 is projected at 2.424 billion CNY, with a significant decline of 77.8% year-on-year, but expected to recover to 2.150 billion CNY in 2024 [23]. - The gross profit margin is anticipated to improve from 40.8% in 2023 to 57.5% in 2026, reflecting enhanced operational efficiency [23].