ZHONGJIN GOLD(SH:600489) Huachuang Securities·2024-04-28 00:32Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [1][6][16]. Core Views - The report highlights that the company's performance is significantly boosted by rising gold prices and cost reduction measures, leading to a strong growth outlook for the future [1][3]. - The company achieved a revenue of 61.26 billion yuan in 2023, a year-on-year increase of 7.2%, and a net profit of 2.98 billion yuan, up 57.11% year-on-year [2][4]. - For Q1 2024, the company reported a revenue of 13.16 billion yuan, a slight decrease of 1.37% year-on-year, but a net profit increase of 43.73% year-on-year to 783 million yuan [2][3]. Financial Performance Summary - In 2023, the company achieved a total profit of 4.30 billion yuan, a 52.50% increase year-on-year, with a return on equity (ROE) of 11.86%, up 3.90 percentage points [3][4]. - The company’s gold production slightly declined in 2023, with mineral gold output at 18.89 tons, down 5.22% year-on-year, while copper production remained stable [3][4]. - For Q1 2024, the company’s mineral gold output increased by 8.91% year-on-year to 4.47 tons, despite a decrease in copper production [3][4]. Future Outlook - The report projects the company’s net profit to reach 3.96 billion yuan in 2024, with a year-on-year growth of 32.8%, and further growth expected in subsequent years [3][4]. - The company is actively pursuing both internal and external growth strategies, with significant investments in geological exploration and resource acquisition [3][4]. Valuation - The target price for the company is set at 16.3 yuan, based on a 20x price-to-earnings (PE) ratio for 2024, reflecting a favorable valuation compared to peers [3][6].