CHIFENG GOLD(SH:600988) Dongguan Securities·2025-09-02 11:09Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market index by more than 15% in the next six months [1][8]. Core Insights - The company's performance has significantly improved due to rising gold product prices, with a 25.64% year-on-year increase in revenue to 5.272 billion yuan and a 55.79% increase in net profit to 1.107 billion yuan in the first half of 2025 [2][5]. - The report highlights the company's focus on gold mining and its steady international expansion, with significant resource exploration breakthroughs in its projects [5][6]. Financial Performance Summary - In Q2 2025, the company achieved a revenue of 2.865 billion yuan, a year-on-year increase of 22.31%, and a net profit of 623 million yuan, also up 22.25% year-on-year [5]. - The gross margin for the first half of 2025 was 48.10%, an increase of 8.60 percentage points year-on-year, while the net margin was 24.32%, up 5.49 percentage points year-on-year [5]. - The average gold prices increased significantly, with the London spot gold price rising by 24.31% and the Shanghai gold price by 24.50% compared to the beginning of the year [5]. Resource and Expansion Potential - The company has made substantial progress in resource reserves, with the SND project discovering a large-scale gold-copper ore body, indicating a resource amount of 131.5 million tons with a gold equivalent grade of 0.81 grams per ton [5]. - The report anticipates continued growth in the company's performance as key mining projects progress and gold prices are expected to remain high [5][6]. Earnings Forecast - The projected earnings per share for 2025 and 2026 are 1.51 yuan and 1.78 yuan, respectively, with corresponding price-to-earnings ratios of 18.60 and 15.77 times based on the closing price on September 1 [6].