SDR(SZ:000603) Guoxin Securities·2025-10-31 09:09Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][24] Core Views - The company reported a significant increase in net profit attributable to shareholders, with a year-on-year growth of 116% in the third quarter and a 62% increase for the first three quarters of 2025 [1][7] - The substantial performance improvement is attributed to both volume and price increases, with the average tax-inclusive spot price of silver rising by 23.51% year-on-year [1][7] - The company is expected to see a notable increase in gold production in 2026 due to the commencement of trial production at Honglin Mining [3][18] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved revenue of 1.652 billion yuan, a year-on-year increase of 18.29%, and a net profit of 323 million yuan, up 61.97% [1][7] - The gross margin for the first three quarters was 55.89%, significantly up from 43.47% in the previous year, while the net margin improved to 23.83% [2][11] - In the third quarter alone, revenue reached 746 million yuan, reflecting a year-on-year increase of 36.98% and a quarter-on-quarter increase of 34.80% [1][7] Production and Capacity Expansion - The company acquired a 53% stake in Honglin Mining in December 2023, with plans to acquire the remaining 47% by October 2024 [3][18] - The core asset of Honglin Mining, the Caiyuanzi Copper-Gold Mine, has gold resources of 17.1 tons and is expected to start formal production in 2026 [3][18] Future Projections - Revenue projections for 2025-2027 are estimated at 2.785 billion yuan, 3.406 billion yuan, and 3.955 billion yuan, with year-on-year growth rates of 38.4%, 22.3%, and 16.1% respectively [4][22] - The net profit attributable to shareholders is projected to be 584 million yuan, 857 million yuan, and 1.091 billion yuan for the same period, with growth rates of 49.7%, 46.8%, and 27.3% respectively [4][22]