CHIFENG GOLD(SH:600988) Great Wall Securities·2024-09-23 07:38Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [2][18]. Core Views - The company has experienced significant growth in both sales volume and price of gold products, which has enhanced profit margins. The first half of 2024 saw a 24.45% year-on-year increase in revenue and a 127.75% increase in net profit [3][11]. - The company's focus on technological advancements and cost control measures has contributed to its performance, with a notable increase in cash flow from operating activities [3][7]. - The company is actively engaged in resource exploration and development, which is expected to enhance its resource reserves and production capacity in the future [9][10]. Financial Summary - Revenue for 2024 is projected to be CNY 90.13 billion, with net profit expected to reach CNY 16.05 billion, translating to an EPS of CNY 0.96 [2][11]. - The company’s gross profit margin for the first half of 2024 was 39.50%, an increase of 7.64 percentage points compared to the same period in 2023 [3]. - The company’s return on equity (ROE) is projected to be 16.9% in 2024, reflecting strong profitability [2][14]. Operational Highlights - The company has made significant progress in its key mining projects, with the Jiulong Mining's expansion project expected to increase processing capacity by 150% [10]. - The company has implemented various cost-saving measures, resulting in a reduction of operational costs while maintaining production efficiency [7][10]. - The company is enhancing its exploration efforts, including partnerships with geological research institutions to improve resource identification and development [9].