YTG(000975) 华创证券·2024-10-22 09:48Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 21.8 CNY, compared to the current price of 19.40 CNY [1]. Core Views - The company's performance has significantly improved due to rising gold prices and decreasing production costs, leading to a substantial increase in revenue and profit [1]. - The report highlights that the company achieved a revenue of 12.071 billion CNY in the first three quarters of 2024, representing a year-on-year growth of 70.14%, and a net profit of 1.727 billion CNY, up 54.46% year-on-year [1]. - The report anticipates continued growth in net profit for the years 2024 to 2026, projecting figures of 2.256 billion CNY, 2.746 billion CNY, and 3.625 billion CNY respectively, with year-on-year growth rates of 58.4%, 21.7%, and 32% [1][3]. Financial Performance Summary - For the first three quarters of 2024, the company reported a revenue of 12.071 billion CNY, a net profit of 1.727 billion CNY, and a net profit excluding non-recurring items of 1.786 billion CNY, with respective year-on-year growth rates of 70.14%, 54.46%, and 64.21% [1]. - In Q3 2024 alone, the company achieved a revenue of 5.566 billion CNY, a year-on-year increase of 120.65%, and a net profit of 652 million CNY, up 69.99% year-on-year [1]. - The average domestic prices for gold and silver in Q3 were 569 CNY per gram and 7493 CNY per kilogram, reflecting year-on-year increases of 23.9% and 30.4% respectively [1]. Production and Cost Analysis - The company experienced a slight decline in gold and silver production in Q3 2024, with gold production at 2.1 tons and silver production at 40.6 tons, showing a quarter-on-quarter decrease of 3% and 34% respectively [1]. - The production cost per gram of gold decreased significantly to 123.8 CNY, down 9% from 2023, while the overall gross margin for gold reached 73.1%, an increase of 12 percentage points from the previous year [1]. Strategic Developments - The company completed the acquisition of the Osino project in August 2024, adding approximately 127.2 tons of gold resources to its reserves, and plans to commence construction of the Twinhills project, expected to start production in early 2027 [1]. - The report notes that the company is actively expanding its mineral resource reserves, which is anticipated to enhance future profitability [1].