SD-GOLD(SH:600547) Huaxin Securities·2024-09-01 08:17Investment Rating - The report maintains a "Buy" investment rating for Shandong Gold [1] Core Views - The significant year-on-year increase in performance is attributed to quality improvement, efficiency enhancement, and rising gold prices [1] - The company achieved substantial revenue growth in the first half of 2024, with operating income reaching 457.73 billion yuan, up 66.90% year-on-year, and net profit attributable to shareholders at 13.83 billion yuan, up 57.24% year-on-year [3][4] Financial Performance - In Q1 and Q2 of 2024, the company reported revenues of 189.57 billion yuan and 268.16 billion yuan respectively, with Q2 revenue showing a 41.46% increase quarter-on-quarter and an 87.17% increase year-on-year [4] - The net profit attributable to shareholders for Q1 and Q2 was 7.00 billion yuan and 6.83 billion yuan respectively, with Q2 showing a 54.88% increase year-on-year [4] - The company’s gold production in the first half of 2024 was 24.52 tons, a 25.28% increase year-on-year [4][5] Project Development - The company is accelerating project construction, achieving significant milestones in various mining projects, including the completion of deep shaft construction at the Sanshan Island gold mine [4][6] - The company invested 310 million yuan in exploration, resulting in an additional gold metal amount of 21.9 tons [6] Mergers and Acquisitions - The company completed the acquisition of 70% of Baotou Changtai Mining, adding over 16 tons of gold metal to its reserves [6] - The integration of mining rights at the Sanshan Island gold mine has been successfully completed, enhancing resource growth prospects [6] Earnings Forecast - The forecast for the company's revenue from 2024 to 2026 is 654.00 billion yuan, 680.00 billion yuan, and 706.00 billion yuan respectively, with net profits projected at 36.95 billion yuan, 45.15 billion yuan, and 53.35 billion yuan [7] - The current stock price corresponds to a price-to-earnings ratio (PE) of 32.7, 26.8, and 22.6 for the years 2024, 2025, and 2026 respectively [7]