YTG(000975) Dongxing Securities·2024-10-22 10:31Investment Rating - The report maintains a "Recommended" rating for the company [5][12]. Core Views - The company's mining operation capabilities are continuously improving, with strong growth potential and valuation elasticity yet to be released [5]. - The company achieved a significant increase in revenue and net profit in Q3 2024, with revenue reaching 12.07 billion yuan, up 70.14% year-on-year, and net profit attributable to shareholders at 1.73 billion yuan, up 54.46% year-on-year [2][5]. - The company has made effective breakthroughs in mineral resource exploration, holding 15 exploration rights covering 175.42 square kilometers, with significant metal reserves [2][3]. Financial Performance - For the first three quarters of 2024, the company produced 6.28 tons of gold, with a production-sales ratio of 103.7%, indicating effective resource management [3]. - The gross profit margin for gold production improved to 73.1%, with production costs decreasing to 142.8 yuan per gram [3][5]. - The company is projected to achieve revenues of 13.58 billion yuan, 14.79 billion yuan, and 17.14 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 2.85 billion yuan, 3.42 billion yuan, and 4.13 billion yuan [5][6]. Growth Potential - The company is expected to increase its gold production to 8.6 tons in 2024, with a high probability of reaching a target of 15 tons by 2026 [3][5]. - The acquisition of Osino Resources is anticipated to add 127.2 tons of gold resources, further enhancing the company's resource reserves [2][3]. Market Position - The company ranks sixth in gold production among publicly listed gold mining companies in China and has a high gross profit margin [2][5]. - The company's return on equity (ROE) reached 16.26%, significantly above the industry average of 9.61%, indicating strong profitability and operational management [5].