YTG(000975) 国盛证券·2024-10-23 00:37Investment Rating - The investment rating for the company is "Buy" and is maintained [2][12]. Core Views - The report highlights that the company's mining business maintains stable gross margins, and the investment income has turned positive, contributing significantly to profit performance. The report remains optimistic about the company's performance under high gold prices supported by inflation and geopolitical risks [1][2]. Summary by Sections Financial Performance - In Q3 2024, the company achieved revenue of 5.566 billion yuan, with a year-on-year growth of 120.65% and a quarter-on-quarter growth of 49.17%. The net profit attributable to shareholders was 0.652 billion yuan, reflecting a year-on-year increase of 69.99% and a quarter-on-quarter increase of 14.04%. The basic earnings per share were 0.23 yuan, up 69.97% year-on-year [1][4]. - The gross margin for gold mining remained stable, with a unit cost of approximately 142.8 yuan per gram, down 2.55% from the first half of the year. The gross margin for gold was about 73.1%, an increase of 1.21% from the first half [1][6]. Mining Operations - The company reported gold production and sales of 2.12 tons and 2.1 tons respectively in Q3 2024, showing a slight decrease of 2.75% and 1.41% quarter-on-quarter. Silver production and sales were 40.58 tons and 47.95 tons, with a quarter-on-quarter decrease of 33.87% in production but an increase of 7.78% in sales [1][6]. Investment and Resource Expansion - The acquisition of Osino Resources Corp. in August 2024 added approximately 127.2 tons of gold resources to the company's reserves, marking a successful overseas resource expansion. Domestically, the company obtained exploration rights for new mining projects, further enhancing its resource base [1][4]. Market Outlook - The report indicates that gold prices are expected to remain high due to inflation and geopolitical risks. Recent economic data from the U.S. suggests a soft landing for the economy, which supports the outlook for gold prices. The report emphasizes the dual support for gold prices from inflation expectations and geopolitical risks [1][4]. Future Projections - The company is projected to achieve revenues of 14.47 billion yuan, 15.14 billion yuan, and 15.98 billion yuan for the years 2024, 2025, and 2026 respectively. The net profit attributable to shareholders is expected to be 2.28 billion yuan, 2.59 billion yuan, and 2.81 billion yuan for the same years, with corresponding P/E ratios of 23.6, 20.8, and 19.2 [1][4][9].