CHIFENG GOLD(SH:600988) Minsheng Securities·2024-04-03 16:00Investment Rating - The report maintains a "Buy" rating for the company [3][30]. Core Insights - The company achieved significant revenue growth in 2023, with total revenue reaching 7.221 billion yuan, a year-on-year increase of 15.23%. The net profit attributable to shareholders was 804 million yuan, up 78.21% year-on-year [2][8]. - The company is expected to continue its growth trajectory, with projected net profits of 1.499 billion yuan, 1.768 billion yuan, and 1.966 billion yuan for 2024, 2025, and 2026, respectively [30][32]. Summary by Sections Revenue Growth and Cost Management - In 2023, the company reported a substantial increase in revenue and net profit, with Q4 net profit soaring by 416.60% year-on-year [2][8]. - The company experienced a decrease in expense ratios, with total expenses declining by 1.15 percentage points. Sales expenses decreased by 4.34% and management expenses fell by 8.16% [2][12]. Production and Cost Efficiency - The company’s gold and copper production volumes were 14.51 tons and 0.65 million tons, respectively, with gold sales increasing by 4.55% year-on-year [17][18]. - The overall cost of gold production decreased significantly, with the all-in sustaining cost for domestic mines dropping by 27.23% year-on-year [22][23]. Resource Exploration and Project Development - The company made notable progress in resource exploration, adding 99.6 million tons of geological gold resources and 5.3 million tons at the Saipan mine [26][27]. - Major projects are underway, including the completion of the Five Dragon Mining underground development project and the Jin Tai Mining project, which are expected to contribute to production growth in 2024 [28][29]. Profit Forecast and Investment Recommendations - The company is projected to achieve net profits of 1.499 billion yuan in 2024, with a corresponding PE ratio of 20 based on the closing price on April 3 [30][32]. - The report emphasizes the growth potential in the company's gold and rare earth businesses, maintaining a "Buy" rating due to expected profitability improvements driven by rising gold prices [30][31].