The company released its semi-annual report in 2023, with revenue of 32.228 billion yuan in the first half of the year, + 50.30% year-on-year, and net profit of 292 million yuan, + 9.92%, and 293 million yuan, + 14.29%, respectively. Among them, Q2 achieved revenue of 15.579 billion yuan in a single quarter, + 54.97% year-on-year,-6.43% month-on-month, and net profit of 169 million yuan, + 16.75%, and + 36.83%, respectively.
The growth of gold and trade business led to revenue growth. In the first half of the year, the revenue of the company's main gold / silver / electrolytic copper / sulfuric acid and non-ferrous metals trading business was 133.821.1 million yuan, respectively, with a year-on-year change of + 49.53%, 4.87%, 6.01%, 89.40%, 315.34%, and 41.53%, 6.54%, 18.57%, 0.12%, 29.60%, respectively. In the first half of the year, the company's sales gross profit margin was 2.86%, compared with the same period last year. The single-quarter gross profit margin of the company was 3.10% compared with the same period last year, and the gross profit margin of the company was 3.10% compared with the same period last year. The gross profit margin of the company increased month-on-month compared with the same period last year. In the first half of the year, the gross profit margin of gold / silver / electrolytic copper / sulfate was 3.19%, 9.41%, 2.50%, 182.34%, respectively, with a year-on-year change of + 0.13/+2.67/-0.09/-238.18pct.
In the first half of the year, the company's gold industry and trade business growth led to revenue growth, silver smelting gross profit margin increased significantly, affected by the year-on-year decline in sulfuric acid prices, sulphuric acid business profitability declined.
Financial expenses, income tax expenses decreased, inventory increased. In the first half of the year, the sales / management / finance / R & D expense rates were 0.06%, 1.13%, 0.28%, 0.32%, respectively, with year-on-year changes + 0.03/+0.15/-0.14/+0.06pct.
Financial expenses are-43.01% year-on-year, benefiting from lower financing interest rates and foreign exchange gains, and income tax expenses are-34.56% year-on-year, mainly due to additional deductions for R & D expenses starting in 2023. The net cash flow of the company's operating activities was 134 million yuan,-91.0% compared with the same period last year, mainly due to the increase in inventory.
Gold production increased significantly compared with the same period last year, and the scale of production capacity continued to expand. The output of the company's main products in the first half of the year were 30.36t of gold, 442.81 t of silver, 100000 t of electrolytic copper and 626400 t of sulfuric acid, respectively, with year-on-year changes of + 31.14%, + 0.09%,-0.05% and-4.99%. The comprehensive supporting capacity of the company's precious metal smelting is in the leading level in China. at present, it has an annual smelting capacity of 50 tons of gold, 1000 tons of silver, 250000 tons of electrolytic copper and 1.3 million tons of sulfuric acid, and can comprehensively recover rare and precious metals such as antimony, bismuth, tellurium and arsenic. In the first half of the year, the company successfully raised 3.16 billion yuan in convertible bonds for the technical transformation project of comprehensive recovery of valuable elements in gold-bearing polymetallic mines and expanded smelting capacity. after the completion of the project, it will increase its annual ore processing capacity of 450000 tons.
The expansion of Liaoshang Gold Mine has been carried out steadily, and overseas equity projects have contributed to the income. By the end of the reporting period, the company and its subsidiaries have completed the reserve record of 150.38 tons of identified gold resources, which is rich in resource reserves. The company stopped production in the early stage of its own mine due to safety inspection, and began to promote the resumption of production in 2022, in which the mining scale of Liaoshang Gold Mine is expected to be increased to 900,000 tons / year after the expansion and expansion of the mining and separation project. In addition, the company holds 20.87% of Wanguo Mining's shares and distributes overseas resources, and its mines have been officially put into production in 22 years.
Profit forecast and investment advice: taking into account the steady progress of the company's production expansion, clear growth path, and upgrading the profit forecast and rating, the company's 2023-2025 net profit is expected to be 615x734x920 million yuan, which is calculated according to the closing price on August 21, corresponding to the PE is 21-18-14 times, upgrade the "recommended" rating.
Risk hints: product price fluctuation risk, prospecting and mining risk, raw material supply risk