SJI(SZ:000975) Huachuang Securities·2024-04-10 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 20.87 CNY [2][4]. Core Views - The company's Q1 2024 expected net profit is projected to be between 480-520 million CNY, representing a year-on-year growth of 61.94%-75.43% [2][3]. - The increase in profit is driven by rising gold and silver prices, with average domestic prices for gold and silver in Q1 2024 at 489 CNY per gram and 6022 CNY per kilogram, respectively, marking year-on-year increases of 16.3% and 19% [3]. - The company is expected to benefit from a favorable gold price environment, with expectations of a decline in interest rates later in the year, which typically supports gold prices [3]. Financial Summary - The company anticipates total revenue of 9.508 billion CNY for 2024, a year-on-year increase of 17.3% [5]. - The projected net profit for 2024 is 2.146 billion CNY, reflecting a growth of 50.7% compared to the previous year [5]. - Earnings per share (EPS) for 2024 is expected to be 0.77 CNY, with a price-to-earnings (P/E) ratio of 25 [5]. Growth Strategy - The company plans to acquire 100% of Osino for approximately 3.68 billion CAD (about 19.6 billion CNY), which will enhance its resource base significantly [4]. - The acquisition is expected to accelerate the company's growth targets, with plans to increase gold production to 12 tons by the end of the 14th Five-Year Plan and 15 tons by the end of 2026 [4].