ZHONGJIN GOLD(SH:600489) China Post Securities·2025-05-26 14:28Investment 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 [10][16]. Core Insights - The company plans to acquire stakes in four subsidiaries from its controlling shareholder, China Gold Group, which is expected to enhance its gold production capacity and profitability [3][10]. - The projected net profit for the company is expected to grow significantly, with estimates of 47.45 billion, 62.45 billion, and 73.51 billion for the years 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 40.13%, 31.61%, and 17.71% [10][12]. Company Overview - The latest closing price of the company's stock is 13.90 yuan, with a total market capitalization of 674 billion yuan [2]. - The company has a total share capital of 4.847 billion shares, with a debt-to-asset ratio of 41.5% and a price-to-earnings ratio of 19.86 [2]. Acquisition Details - The company intends to acquire a 49.33625% stake in Inner Mongolia Jintao, which produced 1.37 tons of gold in 2024, and has total audited assets of 747 million yuan [4]. - The acquisition of an 80% stake in Hebei Dabaoyang, which produced 0.28 tons of gold in 2024, is also planned, with total audited assets of 235 million yuan [5]. - Additionally, the company aims to acquire a 70% stake in Liaoning Tianli, which produced 1.23 tons of refined gold in 2024, with total audited assets of 490 million yuan [6]. - Lastly, a 70% stake in Liaoning Jinfeng, which produced 0.28 tons of gold in 2024, is included in the acquisition plan, with total audited assets of 149 million yuan [9]. Financial Projections - The company’s revenue is projected to grow from 65.56 billion yuan in 2024 to 77.40 billion yuan in 2027, with a compound annual growth rate of approximately 6.88% [12][15]. - The expected earnings per share (EPS) are forecasted to increase from 0.70 yuan in 2024 to 1.52 yuan in 2027 [12][15]. - The price-to-earnings ratio is anticipated to decrease from 19.90 in 2024 to 9.17 by 2027, indicating improved valuation as earnings grow [12][15].