CHIFENG GOLD(SH:600988) GOLDEN SUN SECURITIES·2025-10-26 08:17Investment Rating - The report maintains a "Buy" rating for Chifeng Gold [4][6] Core Views - The company has shown significant improvement in operational performance, with a notable increase in revenue and profit margins in the third quarter of 2025 [1][4] - The report highlights a substantial rise in gold prices and improved operational conditions as key factors for the upward revision of profit forecasts [4] Financial Performance Summary - For the first three quarters of 2025, the company achieved a revenue of 8.64 billion yuan, a year-on-year increase of 38.9%, and a net profit attributable to shareholders of 2.06 billion yuan, up 86.2% year-on-year [1] - In Q3 2025, the company reported a revenue of 3.37 billion yuan, a year-on-year increase of 66.4% and a quarter-on-quarter increase of 17.7%, with a net profit of 0.95 billion yuan, reflecting a year-on-year growth of 141% and a quarter-on-quarter growth of 52.5% [1] - The gross margin for Q3 2025 was 52.7%, up 3.2 percentage points from the previous quarter, while the net profit margin reached 30.5%, an increase of 5.5 percentage points quarter-on-quarter [1] Production and Cost Analysis - The gold production for the first three quarters was 10.7 tons, a slight year-on-year decrease of 0.4%, while sales volume also saw a decline of 2.6% [2] - In Q3 2025, gold production increased to 3.95 tons, a year-on-year increase of 0.75 tons and a quarter-on-quarter increase of 0.54 tons, with sales volume reaching 3.9 tons, up 0.55 tons year-on-year [2] - The average selling price of gold in Q3 was 781 yuan per gram, reflecting a quarter-on-quarter increase of 41 yuan per gram [2] Future Earnings Forecast - The report projects revenues for 2025, 2026, and 2027 to be 13.54 billion yuan, 15.91 billion yuan, and 17.18 billion yuan respectively, with net profits expected to be 3.49 billion yuan, 4.27 billion yuan, and 4.65 billion yuan [4][5] - The corresponding price-to-earnings ratios are forecasted to be 15.8, 12.9, and 11.8 times for the respective years [4][5]