SD-GOLD(SH:600547) Guotou Securities·2024-09-01 00:03Investment Rating - The investment rating for Shandong Gold is "Buy - A" with a target price of 34.8 CNY per share [4]. Core Views - The company has shown steady progress in gold production, with a significant increase in revenue and net profit in the first half of 2024 compared to the previous year [1][2]. - The rise in gold prices has positively impacted profit levels, and the company is on track to meet its production targets [2][9]. - The company is actively expanding its mining projects and has made strategic acquisitions to enhance its gold reserves [3][7]. Financial Performance - In the first half of 2024, Shandong Gold achieved operating revenue of 457.73 billion CNY, a year-on-year increase of 66.90%, and a net profit attributable to shareholders of 13.83 billion CNY, up 57.24% [1]. - The second quarter of 2024 saw operating revenue of 268.16 billion CNY, a quarter-on-quarter increase of 41.46%, while net profit decreased slightly by 2.33% to 6.84 billion CNY [1]. - The average gold price in the first half of 2024 was 523.30 CNY per gram, reflecting a year-on-year increase of 20.5% [2]. Production and Projects - The company produced 24.52 tons of gold in the first half of 2024, an increase of 4.95 tons year-on-year, achieving 52.17% of its annual production target of at least 47 tons [2]. - Key projects such as the Katino project in Ghana and the acquisition of the Changtai Mining have progressed ahead of schedule, contributing to the company's growth strategy [3][7]. Dividend Policy - Shandong Gold plans to distribute a mid-term cash dividend of 0.80 CNY per 10 shares, totaling 3.58 billion CNY, which represents 30.23% of the net profit attributable to shareholders for the period [8]. Future Projections - Revenue projections for 2024-2026 are estimated at 767.31 billion CNY, 824.43 billion CNY, and 864.36 billion CNY, with net profits expected to reach 36.95 billion CNY, 55.44 billion CNY, and 65.93 billion CNY respectively [9].