The company's 2021 annual results fell significantly short of agreed market expectations and our estimates. The company's revenue fell 10.32% year over year to RMB 6,859.4 billion, while shareholders' net profit plummeted 96.80% year over year to RMB 33.7 million.
We expect the price of gold to continue to rise in 2022, benefiting from investors' demand for safe haven and protected assets. We expect the average annual price of gold in 2022 to be around $1,850 per ounce. We expect the average annual copper price in 2022 to be around $9,000/ton.
The company plans to produce around 14.7 tons of mineral gold in 2022. The company's gold mine production in Shandong Province has yet to fully resume.
The company's target price was raised to HK$7.97 to maintain the “collection” rating.