Investment Rating - The report assigns a "Buy" rating to the company, with a target price of HKD 2.67 per share, based on the company's strong growth potential in gold mining and favorable market conditions [3][6]. Core Insights - The company has shown significant growth in gold production and profitability, with a projected increase in gold output to 2.5 tons in 2024, marking a historic high for the company [1][3]. - The company benefits from high-grade gold mines, with a total gold resource of 55 tons and an average grade of 8.26 g/t, indicating strong potential for both organic and external growth [2][28]. - The company's revenue is expected to grow significantly, with forecasts of net profit reaching HKD 681 million in 2025, driven by increased gold production and favorable gold prices [3][5]. Summary by Sections Company Overview - The company has been in operation for nearly ten years, officially entering the gold mining business in 2017 through acquisitions of several mining companies [1][9]. - The company completed a significant acquisition in July 2023, which is expected to lead to a leap in gold production [1][9]. Financial Performance - In 2024, the company achieved revenue of HKD 1.513 billion, a year-on-year increase of 7.19%, primarily due to a reduction in gold recycling business [3][17]. - The gold mining segment saw revenue growth from HKD 582 million to HKD 1.229 billion, contributing significantly to overall profits [3][17]. - The net profit for 2024 is projected to increase by 250% to HKD 198 million, driven by higher gold prices and production [3][17]. Resource and Growth Potential - As of the end of 2024, the company holds a total gold resource of 55 tons, with the highest grade found in the Subei County mine at 10.21 g/t [2][28]. - The company has significant exploration potential in both the Tongguan and Subei mining areas, with ongoing efforts to convert exploration licenses into production [2][28]. - The company is positioned to benefit from local government initiatives aimed at consolidating mining resources and promoting efficient mining practices [51][52]. Future Outlook - The company is expected to continue its growth trajectory, with forecasts indicating net profits of HKD 681 million, HKD 843 million, and HKD 1.085 billion for 2025, 2026, and 2027 respectively [3][5]. - The anticipated increase in gold production and favorable market conditions are expected to drive revenue growth, with a projected increase in earnings per share (EPS) from HKD 0.15 in 2025 to HKD 0.25 in 2027 [3][5].
潼关黄金（00340）：深度报告：厚积薄发，初露锋芒