CHIFENG GOLD(SH:600988) LIANCHU SECURITIES·2025-10-28 11:19Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The company reported significant improvement in performance for the third quarter, with revenue reaching 8.644 billion yuan, a year-on-year increase of 38.91%, and a net profit attributable to shareholders of 2.058 billion yuan, up 79.26% year-on-year [3][4] - The increase in production and sales of gold, along with rising international gold prices, contributed to the strong performance, with the average selling price of gold rising to 729.58 yuan per gram, a 44.13% increase compared to the same period last year [4][10] - The company is expected to continue increasing production in the fourth quarter to meet its annual production target of 16 tons [3] Summary by Sections Financial Performance - For the first three quarters, the company achieved a revenue of 8.644 billion yuan, with a quarterly revenue of 3.372 billion yuan in Q3, reflecting a 66.39% year-on-year growth [3][4] - The net profit for Q3 was 1.432 billion yuan, marking a 115.45% increase year-on-year [3][4] - The production of gold in Q3 was 3.95 tons, a 15.68% increase from Q2, while sales reached 3.9 tons, up 13.7% [3][4] Cost and Production Insights - The operating cost for gold production increased to 326.86 yuan per gram, a 16.09% rise compared to the previous year [4] - The company’s main gold mine, the Ghana Vasa Gold Mine, saw its operating costs rise significantly due to various factors, including increased tax rates and lower ore grades [4] Project Development - Key projects are progressing steadily, with the Five Dragon Mining Company enhancing its processing capacity to 3,000 tons per day [5] - The company is expanding its mining rights and production capabilities in various areas, indicating potential future resource increases [5][8] Future Outlook - The company’s revenue projections for 2025-2027 are 13.22 billion yuan, 15.32 billion yuan, and 17.10 billion yuan, respectively, with net profits expected to reach 3.247 billion yuan, 4.081 billion yuan, and 4.912 billion yuan [10][12] - The expected earnings per share (EPS) for 2025 is 1.71 yuan, with a price-to-earnings (P/E) ratio of 17.4 times based on the closing price on October 27, 2025 [10][12]