Humon Share(SZ:002237) HTSC·2024-10-23 06:03Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 11.97 [7][8]. Core Views - The company's Q3 revenue was RMB 17.19 billion, a year-over-year decrease of 6.91% and a quarter-over-quarter decrease of 14.74%. However, the net profit attributable to the parent company was RMB 166 million, showing a year-over-year increase of 40.19% and a quarter-over-quarter increase of 5.82% [1]. - The company has a gold smelting capacity of 98.33 tons and is actively promoting the equity transfer of the Shiwuk gold mine [3]. - The report indicates that gold prices have long-term upward potential, and gold stocks still hold investment value [4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of RMB 58.16 billion, a year-over-year increase of 14.73%, and a net profit of RMB 465 million, a year-over-year increase of 13.23% [1]. - The company's Q3 gross margin was 2.10%, down 1.04 percentage points quarter-over-quarter, primarily due to a decline in profitability from gold smelting and a drop in prices of non-ferrous metals [2]. - The company reported non-recurring gains of RMB 83.55 million in Q3, mainly from hedging gains [2]. Earnings Forecast - The forecast for net profit attributable to the parent company for 2024-2026 is RMB 606 million, RMB 1.087 billion, and RMB 1.384 billion, respectively. The expected EPS for the same period is RMB 0.53, RMB 0.95, and RMB 1.21 [5][11].