SDR(000603) 长江证券·2025-03-19 02:25Investment Rating - The investment rating for the company is "Buy" and is maintained [10] Core Views - The report emphasizes the need to reassess the company after two years of challenges, highlighting that the management transition and the shift from old to new growth drivers are crucial for understanding the company's current state. The anticipated start of gold production in 2025 is seen as a pivotal moment for the company's new strategic era [2][8] Summary by Sections Company Challenges - The company faced three main disruptions over the past two years: 1. Main business disruption due to the suspension of silver mining for technical upgrades, leading to a 42% year-on-year revenue decline and a 91% drop in net profit in 2023 [5][20] 2. Incremental disruption from the failure to realize resource reserves due to the termination of the Guizhou project, which, while not resulting in losses, affected capital efficiency [5][20] 3. Side business disruption from adjustments in the environmental business, which faced challenges in the declining new energy cycle, resulting in a nearly 6% negative impact on net profit in 2023 [5][20] Company Layouts - The company has made significant strategic adjustments, including: 1. Completion of technical upgrades at the Jinshan mine, increasing production capacity to 480,000 tons/year and reducing processing costs by 8%-10% [6][40] 2. A strategic focus on precious metals, including the termination of the Ding Sheng Xin lead-zinc project and the acceleration of the Dongshengde mine's production [6][40] 3. The acquisition of the Caiyuanzhi copper-gold mine for a total price of 660 million yuan, expected to contribute 300 million yuan in net profit by 2026, representing a 56% increase in performance contribution [6][40] Management Transition - The report discusses the management transition, indicating a strategic shift from diversification to a focused approach on precious metals. The new management's strategy involves stopping ineffective acquisitions, restructuring operations, and solidifying the company's position in the precious metals sector [7][8] Future Outlook - The company is positioned for a significant transformation starting in 2025 with the anticipated gold production. The report forecasts net profits of 375 million yuan, 646 million yuan, and 1.069 billion yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 29X, 17X, and 10X [8][10]