SDR(SZ:000603) HUAXI Securities·2026-02-24 13:20Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for investment [9]. Core Insights - The company is a leading silver producer with a strong focus on the silver industry and is expanding into gold mining, leveraging its high-quality silver resources for growth potential [3][11]. - The company has a robust resource base with approximately 12,000 tons of silver and 34 tons of gold by the end of 2024, with a near-term production capacity of nearly 2 million tons per year [3][20]. - The company is actively pursuing resource acquisitions and expansions, including a significant investment in Honglin Mining to gain control over the Caiyuanzi copper-gold mine, which is expected to start trial production in September 2025 [6][49]. Summary by Sections Company Overview - Established in 1995, the company became publicly listed in 2011 through a major asset swap, acquiring a 62.96% stake in Yindu Mining [3][12]. - The company has expanded its resource base through acquisitions, including several mining companies, enhancing its production capacity and resource reserves [3][4]. Resource Base - The company currently owns nine mining operations, with significant silver and gold reserves, including the Yindu Mining with an annual production capacity of 900,000 tons and a silver reserve of 1,436 tons [4][20]. - The company is also developing new projects, such as the Dongsheng Mining, which is expected to start production in 2026, and has recently acquired stakes in I-chun Jinshi and Guangxi Jinshi to further enhance its resource portfolio [7][20]. Financial Performance - The company forecasts revenues of 2.79 billion yuan, 4.52 billion yuan, and 5.62 billion yuan for 2025-2027, with corresponding net profits of 580 million yuan, 1.34 billion yuan, and 1.74 billion yuan, reflecting significant growth rates [9]. - The company has maintained a stable revenue scale, with mining operations contributing nearly 100% of its profits, and a healthy asset-liability ratio, indicating financial stability [26][32]. Future Growth Potential - The company is positioned to benefit from the tight balance of silver supply and demand, with ongoing projects like the Caiyuanzi copper-gold mine expected to diversify its revenue streams and reduce reliance on silver alone [9][11]. - The company is committed to sustainable mining practices, with several of its operational mines recognized as green mines, ensuring long-term operational viability [20].