SJI(SZ:000975) Huachuang Securities·2024-03-23 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 18.1 CNY [2][4]. Core Views - The company has entered a new development phase following the acquisition by Shandong Gold, which is expected to provide substantial credit support and resources for growth [3]. - The company aims to achieve a gold production of no less than 8 tons in 2024, with a long-term goal of reaching 28 tons by the end of the 14th Five-Year Plan [3]. - The company’s annual production and sales figures remained stable, with Qinghai Dachaidan becoming the main gold mining site, compensating for declines in other areas [3]. - The fourth quarter saw a significant increase in net profit due to improved cost control and rising prices, despite a drop in revenue [3]. Financial Summary - In 2023, the company reported total revenue of 8.106 billion CNY, a year-on-year decrease of 3.29%, while net profit attributable to shareholders was 1.424 billion CNY, an increase of 26.79% [2][5]. - The company forecasts revenues of 9.078 billion CNY, 9.816 billion CNY, and 11.563 billion CNY for 2024, 2025, and 2026, respectively, with expected growth rates of 12%, 8.1%, and 17.8% [4][5]. - The projected net profit for 2024, 2025, and 2026 is 1.857 billion CNY, 1.976 billion CNY, and 2.546 billion CNY, reflecting year-on-year growth rates of 30.4%, 6.4%, and 28.8% [4][5].