ZHONGJIN GOLD(SH:600489) Minsheng Securities·2024-05-05 02:00Investment Rating - The report maintains a "Recommended" rating for the company [2]. Core Views - The company reported a revenue of 61.264 billion yuan in 2023, a year-on-year increase of 7.20%, and a net profit attributable to shareholders of 2.978 billion yuan, up 57.11% year-on-year [1]. - The first quarter of 2024 saw a revenue of 13.164 billion yuan, a slight decrease of 1.37% year-on-year, but a net profit of 783 million yuan, reflecting a significant increase of 43.73% year-on-year [1]. - The company’s mining production remained stable in 2023, with gold and copper production at 18.89 tons and 80,000 tons respectively, showing a slight decline in gold production but an increase in copper production [1]. - The average grade of the Shaling gold mine is 2.77g/t, and it is expected to start production in June 2025, with an initial output of 11 tons and a subsequent annual output of approximately 6.6 tons [1]. Financial Performance - The gross margin for the mining business in 2023 was 44.33%, an increase of 5.07 percentage points year-on-year, driven by rising prices of gold, copper, and molybdenum [1]. - The company achieved a cost reduction of 163 million yuan through operational reforms, with a total expense ratio of 4.69%, down 0.60 percentage points year-on-year [1]. - The company’s geological exploration investment reached 212 million yuan in 2023, resulting in an increase of 30.66 tons of gold and 133,500 tons of copper in metal reserves [1]. Future Outlook - The company plans to produce 18.63 tons of gold and 76,100 tons of copper in 2024, indicating a stable operational plan [1]. - The projected net profits for 2024, 2025, and 2026 are expected to be 4.079 billion yuan, 4.537 billion yuan, and 5.270 billion yuan respectively, with corresponding price-to-earnings ratios of 16, 14, and 12 [1][2].