China Post Securities·2024-06-07 07:30Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company has shown strong performance with revenue growth driven by rising gold prices, achieving a revenue of 59.275 billion yuan in 2023, a year-on-year increase of 17.83%, and a net profit of 2.328 billion yuan, up 86.57% year-on-year [4][8] - The company is expected to continue its growth trajectory with projected revenues of 69.780 billion yuan, 76.629 billion yuan, and 83.174 billion yuan for 2024, 2025, and 2026 respectively, reflecting growth rates of 17.72%, 9.81%, and 8.54% [8][9] Company Overview - The company has a total share capital of 4.473 billion shares and a market capitalization of 130.2 billion yuan [2] - The company has a debt-to-asset ratio of 60.4% and a price-to-earnings ratio of 69.31 [2] Financial Performance - In Q1 2024, the company reported a revenue of 18.957 billion yuan, a year-on-year increase of 44.73%, and a net profit of 700 million yuan, up 59.48% year-on-year [4] - The gross margin for self-produced gold increased by 5.57 percentage points to 48.91% in 2023 [4] Production and Operations - The company produced 41.78 tons of gold in 2023, an increase of 8.03% year-on-year, maintaining its position as the leading gold producer in China [5] - The company plans to produce no less than 47 tons of gold in 2024 [5] Exploration and Resource Development - The company completed 480,000 meters of exploration drilling in 2023, adding 36.6 tons of gold resources, bringing total gold resources to 1,431.30 tons [6] - The company has successfully obtained mining rights for the Sanshandao gold mine, marking a step towards integrating exploration rights [6] Market Outlook - The report indicates a favorable long-term outlook for gold prices due to ongoing geopolitical tensions and economic conditions, despite short-term fluctuations [7] - The expectation of only one interest rate cut by the Federal Reserve this year may support gold's investment appeal [7]