YTG(000975) 东吴证券·2024-08-11 23:30Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company has rich resource reserves and is set to acquire Namibia's Osino company, officially starting its overseas expansion [3]. - Transitioning from a private to a state-controlled enterprise, the company is expected to benefit from asset injections from Shandong Gold Group, enhancing its resource reserves and production capacity [3]. - The company's gold production cost is among the lowest in the industry, with a net profit margin that leads its peers [3][21]. - The company is highly concentrated in gold business, poised to benefit from rising gold prices, with significant profit elasticity under various price increase scenarios [4]. - The long-term increase in U.S. debt is expected to drive gold into a rising cycle, supported by a weakening dollar and inflationary pressures [4]. Summary by Sections Company Overview - The company transitioned to a state-controlled entity with Shandong Gold as the major shareholder, holding 28.89% of shares by the end of 2023 [11]. - The company focuses on expanding its metal resource base through both internal growth and acquisitions, with a clear development path [12]. Resource and Production Capacity - As of the end of 2023, the company holds a total gold resource of 146.66 tons and plans to significantly increase this through the acquisition of the Twin Hills gold mine, which has a resource of 91.3 tons [3][13]. - The company has five mining enterprises, with a total of 4,553.6 million tons of gold resources and 6,906.4 million tons of polymetallic resources [23]. Financial Performance - The company’s total revenue for 2023 was 81.06 billion yuan, a slight decrease of 3% year-on-year, while net profit rose to 14.24 billion yuan, a 26.79% increase [14]. - The company’s gold business accounted for 77.18% of total revenue in 2023, highlighting its significance in driving overall performance [15]. Profitability and Cost Control - The company's gold production cost was 176.36 yuan per gram in 2023, significantly lower than the industry average of 244.55 yuan per gram [21]. - The net profit margin for 2023 was 19.35%, well above the industry average of 8.66% [21]. Future Growth Prospects - The company has set ambitious production targets, aiming for gold production of 12 tons by the end of the 14th Five-Year Plan and 28 tons by the end of the 15th Five-Year Plan [3]. - The report forecasts revenue growth of 14.71%, 26.51%, and 14.52% for 2024, 2025, and 2026, respectively, with net profit growth of 53.76%, 45.54%, and 18.56% for the same years [4].