ZHONGJIN GOLD(SH:600489) Huafu Securities·2024-05-19 10:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 19.06 CNY per share, based on a 26X valuation for 2024 [5][17]. Core Insights - The company reported a revenue of 61.26 billion CNY for 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 in 2023 significantly boosted the company's performance, with gold production slightly down by 5.2% to 18.9 tons, while copper production saw a minor increase of 0.8% to 80,000 tons [2][3]. - The company is expected to continue its growth trajectory, with projected net profits of 3.55 billion CNY in 2025 and 4.13 billion CNY in 2026, reflecting a compound annual growth rate (CAGR) of 19% from 2023 to 2026 [3][4]. Financial Summary - For 2023, the company achieved a gross profit of 8.13 billion CNY, a 36.4% increase year-on-year, with the gold segment contributing 3.35 billion CNY and the steel segment contributing 3.38 billion CNY [2][3]. - The average price of gold in 2023 was 450 CNY per gram, up 14.7% year-on-year, while the average price of copper was 68,000 CNY per ton, a 1.7% increase [2][3]. - The company plans to enhance its production capacity with ongoing projects, including the acquisition of 100% equity in Laizhou Zhongjin, which is expected to contribute significantly to future revenue [3][4].