SJI(SZ:000975) Minsheng Securities·2024-03-23 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2] Core Views - The company reported a significant increase in net profit for 2023, with a year-on-year growth of 26.79%, despite a slight decline in revenue [1] - The company is expected to see substantial growth in gold production due to strategic acquisitions and resource expansion [1][2] Financial Performance Summary - In 2023, the company achieved revenue of 8.106 billion yuan, a decrease of 3.29% year-on-year, while net profit reached 1.424 billion yuan, an increase of 26.79% [1] - The fourth quarter saw a revenue drop of 48.15% year-on-year, but net profit increased by 57.39% [1] - The company's gross profit margin for quality gold and lead-zinc mining operations improved due to rising gold prices [1] Production and Sales Summary - The company produced 7.01 tons of quality gold in 2023, a slight decrease of 0.71% year-on-year, while sales increased by 6.53% to 7.34 tons [1] - Silver production was 193 tons, with a year-on-year increase of 1.18%, and sales reached 194.63 tons, up 7.61% [1] Strategic Acquisitions and Future Growth - The company plans to acquire a large gold mine in Namibia for 1.9 billion yuan, which is expected to add approximately 5 tons of gold production annually starting in 2026 [1] - The company aims to increase its gold production to 12 tons by the end of the 14th Five-Year Plan and 15 tons by the end of 2026, with a long-term goal of reaching 28 tons [1] Profit Forecast and Valuation - The forecasted net profits for 2024, 2025, and 2026 are 2.051 billion yuan, 2.376 billion yuan, and 2.685 billion yuan, respectively [2] - The current stock price corresponds to a price-to-earnings ratio (PE) of 22 for 2024, 19 for 2025, and 17 for 2026 [2]