Chifeng Jilong Gold Mining (06693, 600988.SH) achieved record high performance in the first quarter, when will the gold "crazy bull" stop?

Since the beginning of this year, the global investment market has been turbulent, and the gold market has emerged as a worthy investment highlight. In less than four months, the price of gold on the US COMEX has risen by almost 30%. As the price of gold continues to reach new highs, related stocks are also benefiting actively. On April 25th, Chifeng Jilong Gold Mining (06693, 600988.SH) released its first-quarter report. In the first quarter of 2025, it achieved an operating income of 2.407 billion yuan (RMB, the same below), a year-on-year increase of 29.85%; a net profit of 483 million yuan, a year-on-year increase of 141.1%. The company attributed the increase in revenue and profit to the company's stable gold production and sales volume, effective control of various costs and expenses, and the full enjoyment of the benefits brought about by the rise in the price of gold. In fact, in addition to performance, the stock price of Chifeng Jilong Gold Mining has been continuously improving. Since its listing on March 10th, in just a month and a half, the company's stock price has doubled. With the recent market volatility sparked by Trump's tariff policy, can Chifeng Jilong Gold Mining continue its strong performance in terms of performance and stock price? Gold business volume and price increase, company performance repeatedly hits new highs It is noted that Chifeng Jilong Gold Mining is the largest private gold producer in China, mainly engaged in the business of gold mining, selection, and sales. As of now, Chifeng Jilong Gold Mining owns and operates 7 gold and polymetallic mines located in China, Southeast Asia, and West Africa. According to Frost & Sullivan's report, the company is the fastest-growing major gold producer among domestic peers. From 2021 to 2023, the company's gold production achieved a compound annual growth rate of 33.1%, higher than the average growth rate of 16.4%. At the same time, in terms of gold resources and production, the company ranks fifth among gold producers in mainland China. Additionally, the company has the largest overseas business among China National Gold Group Gold Jewelry producers. In fact, in 2024, the company benefited from the continuous rise in the price of gold, achieving a new high in annual performance. According to financial reports, the company achieved revenue of 9.026 billion yuan in 2024, a year-on-year increase of 24.99%; and net profit attributable to the parent increased by 119.46% year-on-year to 1.764 billion yuan. It is understood that the simultaneous increase in the volume and price of the gold business is an important factor driving the company's performance growth. During the period, the company's gold revenue reached 7.8 billion yuan, a year-on-year increase of 26.2%, while the gross profit margin of the gold sector increased by 11.27 percentage points year-on-year to 46.96%. In terms of volume, the company achieved a gold production volume of 15.16 tons in 2024, a year-on-year increase of 5.60%.3.9114.6%11.2515.224.88%20242386.2/202322.97% 1 &utm_source=toutiao&wpo=wechat&from=singlemessage&isappinstalled=0Significant increase, more due to investors' excessive reaction to market panic and uncertainty. When the fundamentals stabilize, especially after the easing of trade tensions caused by the US tariff war, funds will be withdrawn from the gold market, putting short-term pressure on the international gold price for a significant correction.However, some analysis points out that although the price of gold may continue to fluctuate in the short term due to Trump's unpredictable policy statements, the upward trend of gold price has not been disrupted. Zhongtai stated that this recent rise in gold price was not driven by speculators, and central bank purchases of gold may be the main reason for the increase in gold price. Analysis indicates that before April 11, the demand for gold came mostly from domestic ETFs, with data from the World Gold Council showing that four of the top ten gold ETF inflows were from China. However, during the rise in gold price, it was observed that the Shanghai gold premium became negative at the peak of gold price increase, especially during the sharp price fluctuations on April 11 and 16, where the price rose significantly during trading hours but the Shanghai gold premium did not change accordingly. This suggests that the rise may have been mainly driven by purchases from the People's Bank of China. Since gold can be traded directly in the London over-the-counter market (OTC), it has no impact on the Shanghai Gold Exchange premium. American billionaire and hedge fund manager John Paulson also emphasized factors beyond political dynamics, stating that strong buying from global central banks is a key driver of the rise in gold prices, with the underlying reason being the global trend towards moving away from the paper currency system and using gold as a reserve currency, a trend that is unlikely to change. Overall, the gold market is gaining popularity, with gold stocks such as Chifeng Jilong Gold Mining receiving attention. Although there may be some short-term volatility in the market, the long-term upward trend of gold has not changed. With the stable upward movement of gold prices and the steady increase in gold production and sales, the future prospects of Chifeng Jilong Gold Mining are still promising.