YTG(000975) HTSC·2024-10-22 08:03Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 22.77 [6][9][8] Core Views - The company reported stable production and sales in Q3, with revenue reaching RMB 5.566 billion, a year-on-year increase of 120.65% and a quarter-on-quarter increase of 49.17% [2][3] - The company's net profit attributable to shareholders for Q3 was RMB 652 million, up 69.99% year-on-year and 14.04% quarter-on-quarter [2][3] - The report indicates that gold prices have long-term upward potential, and gold stocks still hold investment value [5][6] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of RMB 12.071 billion, a year-on-year increase of 70.14%, and a net profit of RMB 1.727 billion, up 54.46% year-on-year [2][3] - The production and sales of mined gold remained stable, with Q3 production and sales at 2.12 tons and 2.1 tons respectively [3][4] Cost Analysis - The report notes a continuous decline in costs quarter-on-quarter, with the unit cost for Q1-Q3 being RMB 142.80 per gram, and specific costs for Q1, Q2, and Q3 being RMB 156.32, RMB 136.05, and RMB 134.97 per gram respectively [3][4] Production Goals - The company aims for a total production of around 8 tons for the year 2024, with a long-term goal of reaching 12 tons by the end of the 14th Five-Year Plan [4][6] - The report suggests that achieving these production targets may require further external acquisitions [4] Market Outlook - The report highlights that the upcoming U.S. elections and rising inflation expectations are likely to support gold prices, which have recently reached historical highs [5][6] - The report anticipates that gold prices will continue to show strong fluctuations in the short term due to various economic factors [5]