SJI(SZ:000975) Xinda Securities·2024-04-09 16:00Investment Rating - The investment rating for Yintai Gold (000975) is "Buy" with a target price of 20.53 CNY per share, reflecting a strong growth potential and favorable market conditions [3][9][21]. Core Views - Yintai Gold is positioned for a significant leap in development, backed by Shandong Gold Group, which enhances its operational efficiency and asset quality. The company aims to increase its gold production to 12 tons by 2025, 15 tons by 2026, 22 tons by 2028, and 28 tons by 2030 [3][9][10]. - The company has a strong resource endowment with a total gold metal amount of 146.66 tons and silver metal amount of 7856.9 tons as of the end of 2023. The average production cost of gold in 2023 was 176.42 CNY per gram, indicating competitive cost advantages [3][9][10]. - The anticipated easing of monetary policy in the U.S. is expected to drive gold prices to new highs, benefiting gold stocks and enhancing their valuation levels [3][9][10]. Summary by Sections Company Overview - Yintai Gold has undergone two major business adjustments, transitioning to precious metal mining and selection after acquiring three major gold mines in 2016. In 2023, the company became state-owned following a change in its controlling shareholder to Shandong Gold [3][9][10]. - The company operates five major mining enterprises, focusing on gold and non-ferrous metal mining, with significant contributions from its gold production [10][21]. Growth Potential - The company has substantial growth potential, with plans to expand its resource base and production capacity. The current mining projects include Black River Rock, Jilin Ban, and Qinghai Dachaidan, which are expected to enhance production efficiency and profitability [3][9][10]. - Yintai Gold's gross profit margin for gold production was approximately 60.76% in 2023, indicating strong profitability [3][9][10]. Financial Performance - The company reported a net profit of 1.424 billion CNY in 2023, a 26.79% increase from the previous year, reflecting a recovery in production and sales [3][9][10]. - Revenue forecasts for the company are projected to reach 9.27 billion CNY in 2024, with a corresponding net profit of 2.053 billion CNY, indicating robust growth [3][9][10].