SJI(SZ:000975) Guoxin Securities·2024-03-24 16:00Investment Rating - The investment rating for the company is "Buy" [3][14]. Core Views - The company benefits from rising gold prices, leading to improved performance, with a net profit of 1.424 billion yuan in 2023, a year-on-year increase of 26.79% [1][5]. - The company has a strong cost advantage with a gold production cost of 176.42 yuan per gram and a gross margin of 60.76%, significantly higher than the industry average [1][9]. - The company has transitioned from a private to a state-owned enterprise in 2023, setting clear strategic goals for future growth, including a target of at least 8 tons of gold production in 2024 [1][10]. - The Qinghai Dachaidan project has shown a production increase of 47.6% to 3.05 tons in 2023, with a net profit of 580 million yuan, reflecting a 57.0% year-on-year increase [1][10]. - The company plans to acquire the TwinHills gold mine in Namibia, which has a resource estimate of 99.21 tons and is expected to start production in 2026 [1][10]. Financial Summary - In 2023, the company achieved an operating income of 8.106 billion yuan, a decrease of 3.29% year-on-year, while the net profit attributable to shareholders was 1.424 billion yuan, an increase of 26.79% [1][5]. - The projected operating income for 2024, 2025, and 2026 is 8.784 billion yuan, 9.814 billion yuan, and 11.039 billion yuan, respectively, with annual growth rates of 8.4%, 11.7%, and 12.5% [2][14]. - The forecasted net profit for the same years is 1.798 billion yuan, 2.189 billion yuan, and 2.708 billion yuan, with growth rates of 26.2%, 21.8%, and 23.7% [2][14]. - The company's price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are projected to be 25.3, 20.8, and 16.8, respectively [2][14].