SJI(SZ:000975) Minsheng Securities·2024-08-21 16:37Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching 6.505 billion yuan, up 42.27% year-on-year, and net profit attributable to shareholders at 1.075 billion yuan, up 46.35% year-on-year [1]. - The increase in performance is attributed to both volume and price growth, with gold production rising by 36.7% to 4.16 tons in H1 2024, and gold prices increasing by 12% during the same period [1]. - The company is set to enhance its gold production capacity through the acquisition of a large gold mine in Namibia, which is expected to add 5 tons of gold annually starting in 2026 [1]. Financial Forecasts - The company is projected to achieve net profits of 2.018 billion yuan, 2.483 billion yuan, and 2.826 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding PE ratios of 24, 19, and 17 [2][5]. - Revenue is expected to grow from 8.106 billion yuan in 2023 to 12.840 billion yuan by 2026, reflecting a compound annual growth rate [2][5]. Production and Strategic Developments - The company plans to increase its gold production to 12 tons by the end of the 14th Five-Year Plan and aims for 15 tons by the end of 2026, with a long-term target of 28 tons by the end of the 15th Five-Year Plan [1]. - The strategic acquisition of the Osino company is a key move to secure additional gold resources, with the Twin Hills gold mine holding a resource of 99 tons [1].