CHIFENG GOLD(SH:600988) Guoxin Securities·2024-09-02 02:03Investment Rating - The investment rating for the company is "Outperform the Market" [1][3][13] Core Views - The company reported a significant increase in revenue and net profit for the first half of the year, with revenue reaching 4.196 billion yuan, up 24.45% year-on-year, and net profit attributable to shareholders at 710 million yuan, up 127.75% year-on-year [1][5] - The increase in performance is attributed to a notable rise in gold prices during the second quarter, with the average COMEX gold price at 2222.11 USD/ounce, a 6.37% increase quarter-on-quarter [1][5] - The company is focusing on cost reduction and efficiency improvement, achieving a total maintenance cost of 264.67 yuan/gram, a decrease of 0.9% year-on-year [1][8] - The company plans to list on the Hong Kong Stock Exchange, having submitted its application on August 29, 2024 [1][13] Financial Performance Summary - For the first half of 2024, the company achieved a revenue of 4.196 billion yuan, with a net profit of 710 million yuan and a non-recurring net profit of 639 million yuan [1][5] - The company’s gold production reached 7.55 tons, an increase of 9.72% year-on-year, and sales reached 7.59 tons, up 5.14% year-on-year [1][8] - The company’s financial metrics for 2024-2026 are projected to show continued growth, with revenues expected to be 9.185 billion yuan in 2024, 10.853 billion yuan in 2025, and 12.458 billion yuan in 2026, representing year-on-year growth rates of 27.2%, 18.2%, and 14.8% respectively [1][13][14] Cost Management - The company has successfully managed to keep its costs stable despite industry-wide increases, with sales costs at 285.44 yuan/gram, a 1.7% increase year-on-year [1][8] - The domestic mining sales cost was 168.96 yuan/gram, up 9.9% year-on-year, while costs for overseas operations showed a decrease [1][8] Future Outlook - The company is expected to continue its international development strategy, with gold production anticipated to grow further, benefiting from high profit elasticity related to gold prices [1][13]