Company events
The company released a performance forecast for the first quarter of 2023. 2023Q1 achieved net profit of 129 million to 157 million yuan, an increase of 70.49% to 107.50% over the previous year; net profit returned to the mother of the mother of 130 million to 159 million yuan after deduction, an increase of 67.17% to 104.46% over the previous year.
The merger of the Pagingo gold mine helped the company grow profits
During the reporting period, the company added gold and precious metals mining business, and the Pagingo Gold Mine contributed to the increase in profits. The company completed the acquisition of all of NQM Gold 2 Pty Ltd's shares in 2022, obtained control of the Parkingo Gold Mine held by it in Queensland, Australia, and issued an announcement at the end of '22 that the underlying assets were transferred and registered under the name of the subsidiary Yurun Gold. The Palkingo Gold Mine was included in the scope of the company's consolidated statement. After the completion of the delivery of the Parkingo project, it has reached full production capacity. The company's overseas professional management team has achieved remarkable results in cost reduction, efficiency improvement, quality improvement and production expansion through continuous optimization of personnel, equipment and production plans in the Pachingo mining area, providing an important guarantee for further exploration of the project's potential and long-term high-quality operation of the project. According to the production schedule, Pagingo can produce 3.15/3.35/3.37 tons of gold in 23-25, respectively, and the net profit forecast for 23-25 is 4161/4064/4647 million Australian dollars respectively. According to performance promises, Parkingo is expected to increase the company's profits by 180 million yuan and 190 million yuan respectively in 2023 and 2024.
Gold mining and new energy mineral two-wheel drive have entered a new stage of development. The company adheres to the “two-wheel drive” strategy of gold mining and new energy materials and minerals, accelerates the acquisition of high-quality mineral resources through a combination of internal resource integration and epitaxial expansion, and at the same time increases investment cooperation in downstream industries in the new energy industry chain. Currently, the company has locations in gold, vanadium, graphite, and lithium, and is looking forward to expanding multiple businesses in the future.
Investment advice
We expect the company to achieve revenue of 11.1 billion yuan, 12.3 billion yuan, and 12.4 billion yuan respectively in 2022-2024, respectively -2%, +10%, and +1% respectively; net profit of the mother was 220 million yuan, 560 million yuan, and 570 million yuan respectively, compared to -41%, +160%, and +2% respectively over the previous year. PE corresponding to the current market value is 43X, 17X, and 16X respectively, maintaining the company's “buy” rating.
Risk warning
Gold prices fell short of expected risks, mine production fell short of expectations, commodity trade was affected by exchange rate fluctuations on earnings, changes in the international economic and political environment affected trade, and mine acquisitions fell short of expectations.