SD-GOLD(SH:600547) Shenwan Hongyuan Securities·2025-06-27 08:44Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][7]. Core Views - The company is expected to benefit significantly from the rising gold prices, with a projected net profit of 6.87 billion, 8.50 billion, and 9.48 billion yuan for the years 2025 to 2027, respectively, corresponding to PE ratios of 21, 17, and 15 [7]. - The company has a strong resource endowment, with a total gold resource of approximately 2,058 tons, and has been actively expanding its resource base through acquisitions and internal exploration [6][47]. - The ongoing projects are expected to enhance the company's production capacity, with significant contributions anticipated from the Kaidino, Jiaoji, and Xiling gold mines [60]. Financial Data and Profit Forecast - Total revenue is projected to reach 110.23 billion yuan in 2025, with a year-on-year growth rate of 33.6% [2]. - The company's net profit attributable to shareholders is expected to grow by 132.6% in 2025, reaching 6.87 billion yuan [2]. - The earnings per share (EPS) is forecasted to be 1.53 yuan in 2025, increasing to 2.12 yuan by 2027 [2]. Market Data - As of June 26, 2025, the company's closing price was 32.71 yuan, with a market capitalization of 118.23 billion yuan [3]. - The company has a price-to-book ratio of 5.7 and a dividend yield of 0.67% [3]. Resource and Production Capacity - The company has a total of 16 operating gold mines, with a production capacity of over 1 ton of gold per mine, contributing to 15% of the domestic gold production [6][15]. - The company’s gold production in 2024 is expected to be 46.2 tons, with a significant increase in production anticipated from new projects [55][60]. Strategic Expansion - The company has been actively acquiring resources, including the control of Shanjin International, which enhances its resource strength [6][47]. - The company plans to continue its expansion through both internal exploration and external acquisitions, with a focus on integrating its resources effectively [47][52].