CHIFENG GOLD(SH:600988) Dongxing Securities·2024-09-03 00:00Investment Rating - The report maintains a "Recommended" rating for Chifeng Gold (600988.SH) [1][2] Core Views - The company achieved significant improvements in gold mining efficiency and effective cost reduction strategies, leading to a substantial increase in revenue and profit [1][2] - For the first half of 2024, the company reported a revenue of 4.196 billion yuan, a year-on-year increase of 24.45%, and a net profit attributable to shareholders of 710 million yuan, a year-on-year increase of 127.75% [1][2] - The report anticipates that the company's gold production will benefit from a trend of rising gold prices, with a projected increase in gold output from 14.35 tons in 2023 to 20.26 tons by 2026 [2] Financial Performance Summary - Revenue projections for 2024-2026 are 9.574 billion yuan, 10.442 billion yuan, and 12.269 billion yuan, respectively, with corresponding net profits of 1.610 billion yuan, 1.888 billion yuan, and 2.184 billion yuan [2][3] - The company's earnings per share (EPS) are expected to be 0.97 yuan, 1.13 yuan, and 1.31 yuan for the years 2024, 2025, and 2026, respectively [2][3] - The report indicates a compound annual growth rate (CAGR) of 12.7% for gold production from 2024 to 2026 [1][2] Cost Efficiency and Production Optimization - The company has successfully reduced its all-in sustaining costs for gold production to 264.67 yuan per gram, a decrease of 0.9% year-on-year [1] - Significant cost savings were achieved through continuous optimization of production processes and technological innovations, with procurement savings exceeding 5.4 million USD in the first half of 2024 [1][2] - The report highlights that the Sepon mine's full sustaining costs decreased by 7.95% year-on-year to 1,225.85 USD per ounce, indicating substantial improvements in mining efficiency [1][2] Growth Potential - The report suggests that the company will benefit from a structural tightening in gold supply and demand, leading to a trend of rising gold prices [2] - The anticipated increase in gold production and the company's resource advantages position it well for future growth [2][3]