On April 26, the company disclosed its quarterly report for the year 24. 1Q24 achieved revenue of 18.957 billion yuan, +5.60% month-on-month, +44.73%; net profit to mother of 700 million yuan, -28.77% month-on-month, +59.48% year-on-year; net profit without return to mother of 710 million yuan, -23.98% month-on-month and +61.53% year-on-year.
Q1 Gold prices have risen, and gold production has stabilized. The average price of 9995 gold on the 1Q24 Shanghai Gold Exchange was 489.62 yuan/gram, +4.05% month-on-month. The company produced 11.91 tons of self-produced gold during the same period, -1.32% month-on-month. Considering the Q1 production of 1.98 tons of gold from Yintai Gold Mining, the company's mine Q1 output was 9.93 tons after excluding Yintai Gold. Q1 The company's outsourced gold production was 19.90 tons, +64.39% month-on-month, and the production of small gold bars was 7.15 tons, -24.24%. Q1 The company's revenue was +5.60% month-on-month to 18.957 billion yuan, operating costs +12.67% month-on-month to 16.196 billion yuan, gross profit -22.81% month-on-month to 2,761 billion yuan, and income tax expenses +187.85% month-on-month to 316 million yuan. The main factor was the increase in income tax, and net profit attributable to mother -28.77% month-on-month to 700 million yuan.
Deepen cost management and increase profit margins. Q1 The company's operating tax and additional/sales revenue decreased 0.73 percentage points to 1.54% month-on-month, sales expenses decreased 0.11 percentage points to 0.21%, management expenses decreased 0.79 percentage points to 3.17%, R&D expenses decreased 0.43 percentage points to 0.50%, and financial expenses decreased 0.73 percentage points to 1.76%. Expense management is continuously optimized to enhance the company's profit margins.
Self-produced gold production can be expected to increase. The Linglong Gold Mine, the company's only mine that was discontinued in '23, obtained infrastructure approval in January '24, and is currently undergoing engineering construction to obtain a new safety license and resume production as soon as possible; the company continues to promote the development of gold resources in the Jiaojia mining area (integrated), the integrated development of Xincheng gold mine resources, and the construction of the Catino Namutini gold mine project. After completion, the above projects will contribute 18.85/7.77/8.44 tons of gold per year; the company plans to acquire prospecting rights for the Xiling Gold Mine and is currently processing the transfer of gold exploration rights for Xiling gold mining. Procedure, based on mineral rights assessment According to the report, the Xiling Gold Mine produces 13.39 tons during the normal production year, which will greatly increase the company's own gold production level.
The company's revenue for 24-26 is estimated to be 770/859/92.1 billion yuan, with net profit attributable to mother of 37.97/60.34/7.174 billion yuan, EPS of 0.85/1.35/1.60 yuan respectively, and corresponding PE of 35.34/22.24/18.70 times, respectively. Maintain a “buy” rating.
Risk warning
Gold price fluctuation risk; project construction falling short of expectations; safety and environmental management risk.