Event: the company publishes the announcement of pre-increase in 2023 half-year results. The company expects to achieve a net profit of 230-275 million yuan in 2023, an increase of 123 million yuan to 168 million yuan over the same period last year, an increase of 114.00% Rue 155.86% over the same period last year. It is estimated that the net profit of deducting non-return is 2.34-279 million yuan, an increase of 118.96 percent over the same period last year. The substantial increase in performance is mainly due to the addition of gold and precious metals mining business, and the semi-annual performance is in line with our expectations.
Successfully cut into the golden track, the Parjingo gold mine has been merged to produce at full capacity. On November 30, 2022, NQM registered its full equity transfer to its wholly-owned subsidiary Yurun Gold, and the company acquired control of the Parkingo Gold Mine in Queensland, eastern Australia. NQM was officially included in the consolidated statement (the consolidated statement consolidated its December data, and 2023 will be the first full year to merge the gold mine financial report into the company). It indicates that the company has successfully cut into the gold and precious metal "mining track". Since the completion of delivery, the Parjingo project has reached full capacity production. According to the performance commitment, NQM's net profit in 2022,2023 and 2024 is not less than A $3600, A $3900 and A $41 million, respectively, and the cumulative net profit for three years is A $116 million, which will significantly optimize the company's revenue structure and improve profitability.
The mine cost has been continuously optimized, and remarkable achievements have been made in improving quality and increasing efficiency. Since the company took over, the mine production cost has been continuously optimized. according to the operation in the first half of the year, the total cost of the mine is 220 yuan / g, and the domestic gold mining enterprises still have obvious competitive advantages. The optimization of the cost of Pajingo Gold Mine comes from the results of quality improvement in many aspects, which is mainly reflected in personnel optimization, equipment upgrading, recovery improvement and so on. In terms of gold prices, gold prices showed a volatile upward trend in the first half of 2023, with the average Au9999 price of 434.08 yuan / g on the Shanghai Gold Exchange, and strong expectations for improvement in core inflation in the second half of the year. The Federal Reserve is more likely to revise its interest rate increase expectations, which is expected to start a new round of gold price bull market.
Profit forecast. Pajingo Gold Mine has reached full load production since delivery, in line with expectations. We maintain our profit forecast for the company. It is estimated that the company's gold production and sales in 2023-2025 will be 315,000,000 RMB, and its revenue will be 1.249 billion RMB respectively. The net profit forecast for 2023-2025 will be 5.39pm 5.87 / 630 million RMB respectively, and the closing price on July 14, 2023 will be 17.4x/15.9x/14.9x corresponding to 17.4x/15.9x/14.9x respectively. As a gold precious metal sector, PE is obviously undervalued. Maintain a "buy" rating.
Risk hints: gold prices are lower than expected; gold production is not as expected; exchange rate fluctuations