SD-GOLD(600547) 华创证券·2024-03-30 16:00Investment Rating - The report maintains a "Recommended" investment rating for Shandong Gold [1][6]. Core Views - Shandong Gold's 2023 annual report shows significant growth, with total revenue reaching 59.275 billion yuan, a year-on-year increase of 17.83%, and net profit attributable to shareholders of 2.328 billion yuan, up 86.57% [1][6]. - The company has effectively controlled costs, with the cost of gold sales per gram increasing by only 3.68% compared to the previous year, which is significantly lower than the industry average [2][6]. - The company plans to produce no less than 47 tons of gold in 2024, supported by ongoing project developments and resource integration [2][6]. Summary by Sections Financial Performance - In 2023, Shandong Gold achieved total revenue of 59.275 billion yuan, a 17.83% increase year-on-year. The net profit attributable to shareholders was 2.328 billion yuan, reflecting an 86.57% growth. The net cash flow from operating activities was 6.849 billion yuan, up 130.46% [1][6][7]. - The basic earnings per share for the year were 0.42 yuan, with a weighted average return on equity of 7.84% [1][6]. Production and Cost Management - The company produced 41.78 tons of gold in 2023, an increase of 8.03% from the previous year. This growth was attributed to various projects and the consolidation of Silver Tai Gold [2][6]. - The average grade of ore mined was 1.29 grams per ton, an increase of 0.06 grams per ton year-on-year, due to improved mining methods and management [2][6]. Future Outlook - Shandong Gold plans to enhance its production capacity and aims for a gold output of at least 47 tons in 2024. Key projects include the Jiao Jia Mine resource development and the integration of new mining areas [2][6]. - The company expects to achieve revenues of 72.482 billion yuan in 2024, with a projected net profit of 3.798 billion yuan, indicating a growth rate of 63.2% [6][7]. Valuation - The target price for Shandong Gold is set at 39.91 yuan, representing a potential upside of 41% from the current price of 28.23 yuan [3][6].