CHIFENG GOLD(SH:600988) China Post Securities·2025-08-28 11:22Investment 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 Views - The company achieved a revenue of 5.272 billion yuan in H1 2025, representing a year-on-year growth of 25.6%, and a net profit attributable to shareholders of 1.107 billion yuan, up 55.8% year-on-year [4]. - Despite a temporary decline in production and sales volume, the rising gold prices have significantly contributed to the company's performance, with the average selling price of gold increasing by 41.42% year-on-year [5]. - The company has revised its annual gold production and sales target to 16.0 tons for 2025, having completed 42% of the production and sales targets in H1 2025 [5]. Summary by Sections Company Overview - Latest closing price: 24.81 yuan - Total shares: 1.9 billion, circulating shares: 1.664 billion - Total market capitalization: 47.1 billion yuan, circulating market capitalization: 41.3 billion yuan - 52-week high/low: 31.30/15.61 yuan - Debt-to-asset ratio: 47.3% - Price-to-earnings ratio: 23.19 [2]. Financial Performance - In H1 2025, the company reported a net profit of 1.107 billion yuan, with a significant increase in Q2 performance, achieving a net profit of 623 million yuan, up 22.3% year-on-year [4]. - The company's operating costs increased by 7.8% year-on-year to 2.736 billion yuan, with a gross margin of 54.52%, reflecting a 12.14% increase [6]. - The forecast for net profit attributable to shareholders for 2025-2027 is 3.101 billion, 3.679 billion, and 4.199 billion yuan, respectively, with year-on-year growth rates of 76%, 19%, and 14% [10]. Production and Sales - The company experienced a decline in gold production and sales volume in H1 2025, with production down 10.56% to 6.75 tons and sales down 10.91% to 6.76 tons [5]. - The company is optimistic about H2 2025, expecting an improvement in production and sales as mining projects progress [6][9]. Project Development - Ongoing mining projects are expected to enhance profitability, with new underground mining projects approved and progressing [7][9]. - The discovery of a large-scale gold-copper deposit is anticipated to be a significant profit growth point for the company [9].