SJI(SZ:000975) Huafu Securities·2024-03-25 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 20.95 CNY based on a 30x PE for 2024 [5][17]. Core Insights - The company reported a revenue of 8.106 billion CNY for 2023, a decrease of 3.3% year-on-year, while the net profit attributable to shareholders increased by 26.7% to 1.424 billion CNY [3][4]. - The increase in profits is attributed to rising gold and silver prices, with the average gold price in 2023 at 449.7 CNY per gram, up 14.7% year-on-year, and the average silver price at 5,562 CNY per kilogram, up 17.8% year-on-year [3]. - The company plans to acquire 100% equity of the Twin Hills gold mine in Namibia, with an expected annual production of 5 tons starting in 2026 [3]. Financial Performance Summary - In Q4 2023, the company achieved a revenue of 1.011 billion CNY, down 48.2% year-on-year, but net profit for the quarter rose by 57.4% to 306 million CNY [3]. - The total gold production for 2023 was 7.01 tons, a slight decrease of 0.7% year-on-year, while silver production increased by 1.2% to 193 tons [3]. - The company's gross profit for 2023 was 2.597 billion CNY, an increase of 5.18 billion CNY year-on-year, with a slight rise in production costs to 176.3 CNY per gram of gold [3]. Future Projections - The company expects net profits to reach 1.94 billion CNY in 2024, 2.21 billion CNY in 2025, and 2.88 billion CNY in 2026, with corresponding EPS of 0.70, 0.79, and 1.04 CNY respectively [4][11]. - Revenue growth is projected to rebound in 2024 with an expected increase of 12% to 9.099 billion CNY, followed by further growth in subsequent years [4][11].