21H1's net profit increased by 73.93% compared with the same period last year, maintaining the "overweight" rating. On August 18, the company released a semi-annual report with 21H1 revenue of 21.343 billion yuan (yoy+29.78%) and home net profit of 233 million yuan (yoy+73.93%). The performance growth was mainly due to the rise in the volume and price of the company's silver and electrolytic copper products. During the reporting period, the company made a total impairment of about 140 million yuan on various assets, and the investment income recorded-161 million yuan, which affected the company's performance, so we slightly lowered our performance forecast. It is estimated that the company's EPS for 21-23 years will be 0.44 EPS 0.56 pound 0.63 yuan (the previous value is 0.45 pound 0.58 pound 0.64 yuan). Comparable company Wind unanimously expected PE (21E) average 32X, taking into account that it will take time for Jiangxi Copper (600362 CH) to provide support for the company's development, so it will no longer give a valuation premium, according to 21-year EPS0.44 yuan to give 32.0X PE, corresponding to the target price of 14.08 yuan (the previous value of 13.09 yuan), to maintain the "overweight" rating.
Benefiting from the rising volume and price of silver and copper business, the company achieved year-on-year growth of 21H1. The company completed the production of 18.77 tons of gold (yoy-24.41%), 396.37 tons of silver (yoy+0.28%), 103900 tons of electrolytic copper (yoy+48.01%) and 672400 tons of sulfuric acid (yoy+15.63%). Among them, the operating income of silver and electrolytic copper products respectively reached 23.21 / 8.451 billion yuan, a substantial increase of 70.66 per cent over the same period last year, and the gross profit margin increased by 1.91/3.83pct to 3.97 per cent respectively over the same period last year. Sulphuric acid business turned from losses to profits and realized revenue of 146 million yuan, and gross profit margin increased by 110.88pct to 19.37 per cent over the same period last year.
Promote the employee stock ownership plan and actively establish a long-term mechanism for employee stock ownership the company announced the draft employee stock ownership plan for 21 years (08.19), and plans to raise a maximum of 141 million yuan from employees who voluntarily participate in the stock ownership plan. based on the closing price of 12.30 yuan per share on August 17, 21, the total ceiling of the employee stock ownership plan is about 11.4659 million shares. The shares of the shareholding plan will be purchased from the secondary market or repurchased by listed companies.
The provision for impairment of assets superimposed investment profit and loss is relatively large, affecting the company's performance during the reporting period, the company made a total impairment of about RMB 140 million on various assets, and under the influence of the closing loss of commodity futures contracts, the company's investment income recorded-161 million yuan. In addition, the total non-recurrent profit and loss of the company during the reporting period-95 million yuan, the overall performance of the company was affected to a certain extent.
The performance is expected to grow steadily and maintain the "overweight" rating.
The company's performance in the second half of 21 is expected to grow steadily, but in view of the large provision for impairment of assets and investment gains and losses, we slightly downgrade our profit forecast according to the actual operating conditions of the company's 21H1, and expect the 21-23 year net return profit to be 5.09pm 6.46pm 726 million yuan (the previous value is 5.20pm 6.66max 7.31). The average PE of the 21-year comparable company's Wind is expected to be 32.0X. Considering that it will take time for Jiangxi Copper (600362 CH) to support the company's development, it will no longer give a valuation premium, and will be given a valuation premium of 32.0X PE according to the 21-year EPS0.44 yuan, corresponding to the target price of 14.08yuan (the previous value is 13.09yuan) to maintain the overweight rating.
Risk tip: tighter monetary policy leads to lower commodity prices. Policies such as environmental protection have led to a decline in production.