YTG(SZ:000975) Capital Securities·2024-02-26 16:00Investment Rating - The investment rating for the company is "Buy" [1][8]. Core Views - The company announced plans to acquire 100% of Osino Resources Corp. at a price of CAD 1.9 per share, totaling CAD 368 million. The main asset is the Twin Hills gold mine project in Namibia, which has a gold resource of 99 tons [3]. - The Twin Hills gold mine is expected to start production in 2026, with an annual gold output of approximately 50,000 tons. The feasibility study indicates a processing capacity of 5 million tons per year and a total capital expenditure of USD 365 million [3]. - The company aims to enhance its international presence and become a growth-oriented international gold mining company. The strategic plan includes achieving gold production of 12 tons by the end of 2025 and 28 tons by the end of 2030 [3]. - The company is positioned as a leading domestic gold mining enterprise with significant cost advantages and is expected to benefit from a favorable long-term gold price outlook due to anticipated interest rate cuts by the Federal Reserve [3]. Financial Summary - The company’s projected revenues for 2023, 2024, and 2025 are CNY 93.32 billion, CNY 103.62 billion, and CNY 118.64 billion, respectively, with corresponding net profits of CNY 14.92 billion, CNY 19.26 billion, and CNY 24.43 billion [4]. - The earnings per share (EPS) are expected to be CNY 0.54, CNY 0.69, and CNY 0.88 for the years 2023, 2024, and 2025, respectively [4].