CHIFENG GOLD(SH:600988) China Post Securities·2025-04-29 02:23Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 20% compared to the benchmark index within the next six months [6][13]. Core Views - The company's Q1 2025 net profit attributable to shareholders reached 483 million yuan, representing a year-on-year increase of 141%. This growth is attributed to a significant rise in gold prices [3]. - The company's Q1 gold production and sales volume both decreased by 7% year-on-year, totaling 3.34 tons and 3.33 tons respectively. This decline is considered normal as the company focuses on increasing mining efforts for future expansion [4]. - The sales cost of gold increased to 355.09 yuan/g in Q1 2025, up from 300.51 yuan/g in Q1 2024. The increase in costs is primarily due to higher costs at the Jin Xing Vasa mine [5]. - The company expects to achieve its annual production and sales target of 16.70 tons of gold, with no adjustments made to this guidance despite the Q1 decline [4]. - Profit forecasts for 2025-2027 indicate a steady increase in net profit, with estimates of 3.28 billion yuan, 3.87 billion yuan, and 4.26 billion yuan respectively, reflecting year-on-year growth rates of 86.02%, 17.94%, and 10.01% [6][9]. Financial Summary - As of the latest report, the company's total market capitalization is 50.7 billion yuan, with a total share capital of 1.9 billion shares [2]. - The company's earnings per share (EPS) for 2025 is projected to be 1.76 yuan, with a price-to-earnings (P/E) ratio of 15.20 [9][12]. - The company's debt-to-asset ratio stands at 47.3%, indicating a moderate level of leverage [2][12].