HTSC·2025-04-29 08:55Investment Rating - The report maintains an "Overweight" rating for the company [8][30]. Core Views - The company reported a Q1 2025 revenue of 25.935 billion RMB, representing a year-over-year increase of 36.81% and a quarter-over-quarter increase of 67.19%. The net profit attributable to shareholders was 1.026 billion RMB, up 46.62% year-over-year and 15.86% quarter-over-quarter [1][2]. - The controlling shareholder, Shandong Gold Group, plans to increase its stake in the company by investing between 500 million RMB and 1 billion RMB over the next 12 months, reflecting confidence in the company's long-term development [3]. - The report emphasizes that gold prices are currently on an upward trend, driven by geopolitical uncertainties and the depreciation of the US dollar, which enhances the asset allocation value of gold [4]. Summary by Sections Financial Performance - In Q1 2025, the company's self-produced gold output was 11.87 tons, with sales of 10.99 tons, showing a slight decrease in production but a significant increase in sales [2]. - The average gold price in Q1 2025 was 672.13 RMB per gram, a year-over-year increase of 37.2%, contributing to the rise in net profit [2]. Shareholder Actions - The controlling shareholder's planned stock purchase is a strategic move to bolster confidence in the company's future performance [3]. Market Outlook - The report anticipates continued appreciation in gold prices, suggesting that gold stocks remain a valuable investment option [1][4]. - The company is projected to achieve an EPS of 1.45 RMB in 2025, with a significant increase in net profit forecasted for the coming years [5][7]. Valuation Metrics - The report adjusts the company's valuation, setting a target price of 36.98 RMB for 2025, based on a price-to-book ratio of 3.82 [5][9].