SJI(SZ:000975) Soochow Securities·2025-08-22 01:54Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the price trend of precious metals is on the rise, which provides the company with earnings elasticity. The company achieved significant year-on-year growth in revenue and net profit for the first half of 2025, with revenue reaching 9.246 billion yuan (up 42.14%) and net profit at 1.596 billion yuan (up 48.43%) [7] - The company has demonstrated excellent cost control and benefits from the stable upward trend in precious metal prices. The report notes that the production of gold, silver, zinc, and lead has been affected by seasonal factors and declining ore grades, with respective production figures of 3.72 tons of gold, 61.83 tons of silver, 7,916.57 tons of zinc, and 4,354.42 tons of lead, showing year-on-year changes of -11%, -25%, +41%, and -14% [7] - The average selling prices for gold and silver increased significantly, with gold priced at 724.83 yuan per gram (up 39%) and silver at 6.33 yuan per gram (up 19%) [7] - The company is progressing well with overseas mining projects, including the Osino gold mine in Namibia, which is expected to start production in the first half of 2027 [7] - The company is also increasing its resource reserves, with significant exploration results in Qinghai province, adding 3.85 tons of gold metal [7] - The report anticipates a favorable environment for gold investments due to expected rapid declines in real interest rates in the U.S. [7] Financial Projections - The company’s total revenue is projected to grow from 13.585 billion yuan in 2024 to 22.311 billion yuan in 2027, with a compound annual growth rate (CAGR) of 18.99% [1] - Net profit is expected to increase from 2.173 billion yuan in 2024 to 6.352 billion yuan in 2027, reflecting a CAGR of 41.57% [1] - The report adjusts the company's net profit forecasts for 2025-2027 to 3.483 billion yuan, 4.487 billion yuan, and 6.352 billion yuan respectively, with corresponding P/E ratios of 15.62, 12.12, and 8.56 [7][8]