SJI(SZ:000975) Dongxing Securities·2025-08-21 03:19Investment Rating - The report maintains a "Recommended" rating for the company [2][14]. Core Views - The company achieved a record high in revenue and net profit during the first half of 2025, with revenue reaching 9.246 billion yuan, a year-on-year increase of 42.14%, and net profit attributable to shareholders at 1.596 billion yuan, up 48.43% [3]. - The company's gold reserves have increased significantly, with an additional 3.85 tons of gold metal discovered, and the exploration area has expanded by 2.7% [4]. - The company is focusing on optimizing production processes and enhancing profitability, with a notable increase in gold gross margin from 71.89% to 79.15% [6]. Summary by Sections Financial Performance - In the first half of 2025, the company reported a gold production of 3.72 tons, with a sales volume of 4.12 tons, achieving a sales rate of 111% [5]. - The gross margin for gold production improved significantly, reflecting the company's effective cost control and the rising global gold prices [6]. Resource Expansion - The company has made substantial progress in resource exploration, with a total exploration area of 5,984 square kilometers, and plans to continue increasing its resource reserves through exploration and potential acquisitions [4]. - The company is advancing its projects in Namibia and China, with expected production increases in the coming years [5]. Industry Outlook - The report indicates a favorable industry outlook, with gold prices expected to rise due to supply-demand dynamics and market conditions [14]. - The company is well-positioned within the industry, maintaining a low debt ratio of 20.09%, which provides financial flexibility [13]. Future Projections - Revenue projections for the company are optimistic, with expected revenues of 17.75 billion yuan in 2025, 20.23 billion yuan in 2026, and 22.12 billion yuan in 2027 [15]. - The company anticipates a significant increase in gold production capacity, potentially exceeding 15 tons annually by 2027 [5].