ZHONGJIN GOLD(SH:600489) Huafu Securities·2024-05-19 10:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 19.06 CNY per share, indicating an expected upside of over 20% in the next six months [5][17]. Core Insights - The company reported a revenue of 61.26 billion CNY in 2023, a year-on-year increase of 7.2%, and a net profit of 2.98 billion CNY, up 40.7% year-on-year. The first quarter of 2024 saw a revenue of 13.16 billion CNY, a slight decrease of 1.37% year-on-year, but net profit increased by 31.6% to 780 million CNY [2][3]. - The increase in gold and copper prices significantly contributed to the company's performance in 2023, with gold production slightly down by 5.2% to 18.9 tons, while smelting gold increased by 2.2% to 40.9 tons. The average gold price rose by 14.7% to 450 CNY per gram [2][3]. - For 2024, the company plans to produce 18.63 tons of mined gold and 37.63 tons of smelted gold, alongside copper production targets of 76,100 tons and 392,300 tons of electrolytic copper [3]. Financial Summary - The company achieved a gross profit of 8.13 billion CNY in 2023, a 36.4% increase year-on-year, with the gold segment contributing 3.35 billion CNY and the copper segment contributing 3.38 billion CNY [2][3]. - The forecast for net profit for 2024-2026 is adjusted to 3.55 billion CNY, 4.13 billion CNY, and 5.32 billion CNY respectively, with corresponding EPS of 0.73 CNY, 0.85 CNY, and 1.10 CNY [3][4]. - The company's revenue is projected to grow at a rate of 12.5% in 2024, followed by 3.6% in 2025 and 1.0% in 2026 [11]. Market Information - The current stock price is 14.75 CNY, with a market capitalization of approximately 71.5 billion CNY [5]. - The company has a total share capital of 4,847 million shares and a debt-to-asset ratio of 42.74% [5]. Production and Growth Potential - The company is progressing with the Sha Ling gold mine project, which is expected to contribute significantly to future growth, with production anticipated to start in 2025 [3]. - The acquisition of 100% equity in Laizhou Zhongjin is also expected to enhance the company's resource base and production capacity [3].