Investment Rating - The report maintains an "Accumulate" rating for the company [6][4]. Core Views - The company is expected to benefit from the upward fluctuation in gold prices and plans to expand its gold mining operations [3][4]. - In Q1 2025, the company reported revenue of 18.959 billion RMB, a year-over-year decrease of 8.88% but a quarter-over-quarter increase of 7.48%. The net profit attributable to the parent company was 156 million RMB, reflecting a year-over-year increase of 10.52% and a quarter-over-quarter increase of 116.59% [1][2]. Summary by Sections Financial Performance - In Q1 2025, the company's operating revenue and costs both decreased, with revenues down 8.88% year-over-year and costs down 9.34%. The decline in costs was greater than that of revenues, leading to an increase in gross profit to 606 million RMB and a gross margin of 3.20% [2]. - The company experienced a significant increase in investment income, up 34.32% year-over-year, primarily due to increased returns from its investment in the Wanguo Gold Group [2]. Strategic Outlook - The company aims to enhance its gold mining operations and is accelerating the construction of the Liaoshang Gold Mine project while seeking opportunities to acquire quality mines. The outlook for gold prices in 2025-2026 is positive, with expectations of continued upward movement [3][4]. - The report highlights that recent tariff impacts have led to historical highs in gold prices, suggesting a shift in asset preferences towards gold amid rising uncertainties in the global political and economic landscape [3]. Valuation Metrics - The earnings per share (EPS) estimates for 2025-2027 are projected at 0.74, 0.93, and 1.29 RMB, respectively. The target price is set at 12.18 RMB, based on a price-to-earnings (PE) ratio of 16.5 for 2025, which reflects a 20% discount compared to the average PE of comparable companies [4][7].

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5] Core Views - The company achieved significant growth in Q1 2025, with revenue of 4.321 billion yuan, a year-on-year increase of 55.84% and a quarter-on-quarter increase of 185.4%. The net profit attributable to the parent company was 694 million yuan, up 37.91% year-on-year and 55.6% quarter-on-quarter [1] - The increase in gold sales and prices has positively impacted the company's performance, with gold sales volume rising 31.8% quarter-on-quarter to 2.03 tons, and the average selling price of gold increasing by 20% compared to the average price in 2024 [2] - The company has effectively managed costs, resulting in a significant increase in unit gross profit. The unit gross profit for gold rose to 511 yuan/g, a 26.5% increase from 404 yuan/g in 2024, while the unit gross profit for silver increased by 34.1% to 3.89 yuan/g [3] - The company is making progress in its mining projects, with plans to produce no less than 8 tons of gold by 2025. Recent acquisitions in the Yunnan province are expected to enhance gold resource reserves and exploration rights [4] Financial Data and Valuation - The company forecasts revenue growth from 8.106 billion yuan in 2023 to 18.983 billion yuan in 2027, with a compound annual growth rate of 16.20% [11] - The net profit attributable to the parent company is projected to increase from 1.424 billion yuan in 2023 to 4.187 billion yuan in 2027, reflecting a growth rate of 18.90% [11] - The price-to-earnings ratio (P/E) is expected to decrease from 39.77 in 2023 to 13.53 in 2027, indicating improved valuation over time [11]