SDR(000603) Minsheng Securities·2025-04-30 04:35Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 14.25 yuan [7]. Core Insights - The company reported a significant increase in profitability despite a decrease in revenue for 2024, with a net profit of 3.90 billion yuan, up 163.56% year-on-year [3]. - The mining operations have resumed normal production, leading to a substantial increase in profit margins due to rising commodity prices [2][4]. - The company is expected to see a steady growth in net profit from 5.49 billion yuan in 2025 to 12.93 billion yuan in 2027, reflecting a strong growth trajectory [5]. Summary by Sections Financial Performance - In 2024, the company achieved an operating income of 20.13 billion yuan, a decrease of 10.66% year-on-year, while the net profit attributable to shareholders was 3.90 billion yuan, an increase of 163.56% [3]. - The first quarter of 2025 saw an operating income of 3.53 billion yuan, a year-on-year increase of 33.92% [3]. - The average price of silver in 2024 was 28 USD/ounce, up 21.0% year-on-year, while the first quarter of 2025 saw an average price of 31.7 USD/ounce, up 39.1% [4]. Production and Cost Analysis - The company produced 138.6 tons of silver in 2024, a slight decrease of 4.48% year-on-year, primarily due to technical upgrades at the Jinshan Mining [4]. - The cost per ton for silver-lead concentrate was 9,569 yuan, reflecting a year-on-year increase of 34.2% [4]. - The gross profit margin for silver ingots was 51.45%, an increase of 3.48 percentage points year-on-year [4]. Future Outlook - The company is progressing well with new mining projects, including the Caiyuanzi gold mine, which is expected to commence production soon [5]. - Forecasts indicate that the company will achieve net profits of 5.49 billion yuan in 2025, 8.01 billion yuan in 2026, and 12.93 billion yuan in 2027, with corresponding PE ratios of 18, 12, and 8 [6][5].