SJI(SZ:000975) GF SECURITIES·2024-02-26 16:00Investment Rating - The report assigns a "Buy" rating to the company, with a reasonable value target of 18.66 CNY per share based on a 30x PE valuation for 2024 [3]. Core Views - The company is making a strategic move by acquiring 100% of Osino for approximately 19.45 billion CNY, which aligns with its focus on the mining sector and gold production [1]. - The acquisition is expected to increase the company's gold production by about 5 tons annually, potentially raising its gold equity by 75% and helping achieve its strategic production goals by 2026 [1]. - The Osino project has significant resources, including a mining right for the Twin Hills gold mine in Namibia, with ore reserves of 64.5 million tons and a gold metal content of 67 tons [1]. - The project is projected to have a construction capital expenditure of 365 million USD (approximately 2.6 billion CNY) and an all-in sustaining cost (AISC) of about 1011 USD/oz (234 CNY/g) [1]. - Assuming a gold price of 500 CNY/g (2160 USD/oz), the project could yield a net profit of approximately 600-700 million CNY upon reaching full production [1]. Financial Summary - The company's revenue is projected to grow from 9.318 billion CNY in 2023 to 10.253 billion CNY in 2025, with a compound annual growth rate (CAGR) of 5.2% [2]. - The expected earnings per share (EPS) for 2023, 2024, and 2025 are 0.55 CNY, 0.62 CNY, and 0.68 CNY, respectively, reflecting a growth trajectory [2]. - The report anticipates a significant increase in net profit from 1.538 billion CNY in 2023 to 1.887 billion CNY in 2025, indicating a strong recovery and growth potential [2].