Event: the company disclosed its mid-2021 report that during the reporting period, the company realized revenue of 551 million yuan, an increase of 11.94% over the same period last year, and a net profit of 114 million yuan, an increase of 490.81% over the same period last year, of which 106 million yuan was deducted from non-return net profit, an increase of 1.
4.1 billion yuan; in the second quarter alone, the company achieved a net profit of 107 million yuan, an increase of 1528.57% over the previous quarter, and a net profit of 94 million yuan deducted from the previous quarter, an increase of 783.33% over the previous quarter. The company's performance in the first half of the year showed a trend of rapid growth.
The selection operation returned to normal, and the prices of the main products rose steadily. From a quantitative point of view, the company's mining operations returned to normal during the reporting period, with a significant increase in production and sales compared with the same period last year.
9.9 billion, the same increase of 121.68%, zinc powder (including silver) revenue of 147 million, the same increase of 194.75%, the income growth rate significantly exceeded the price increase, reflecting a significant increase in the production and sales of the main mineral products. From a price point of view, the average prices of LME zinc and LME lead during the reporting period were US $2831.53 / t and US $2072.00 / t respectively, an increase of 38.35% and 17.60% respectively over the same period last year. The average price of H1 in 2021 was 26.54 US dollars / oz, an increase of 58.30% over the same period last year. The price of the company's major metal and mineral products increased significantly over the same period last year. During the reporting period, the volume and price of the main products rose, pushing up the company's profit by a large margin.
The endowment of primary mineral resources is excellent and its growth is outstanding in the future. Among the mining subsidiaries of the company, there are 4 mining subsidiaries and 2 to be produced, with silver resource reserves of nearly 10,000 tons, annual ore mining capacity of nearly 2 million tons, corresponding silver production capacity of about 220t, and its main mine resource endowment is excellent. Bayern Daba Silver Polymetallic Mine is one of the mines with the highest gross profit among domestic listed companies. The Eren Tolgoi Silver Mine in Xinbarhu Youqi is an independent large silver mine with the largest single silver reserves and the largest production scale. at present, the company's projects under construction include: Jinshan Mining 480000 tons of ore mining expansion to 900000 tons, Dongsheng Mining 250000 tons of ore mining, Deyun Mining 600000 tons of exploration and conversion. In addition, during the reporting period, the company promoted the 72.5% equity acquisition of Guizhou Dingshengxin and expanded the distribution of lead and zinc resources. according to the company announcement, the amount of lead and zinc metal resources in the mine is 3.2744 million tons, with an average grade of 8.97%, and the amount of silver metal is about 830 tons. The first and second phase mining and dressing plants were put into production in 22 and 24 years respectively. After all the planned projects are put into production in 2025, the company's overall mining capacity is expected to rise to 5.25 million tons / year, with an annualized compound growth rate of 27%. The company's silver production capacity is expected to increase from the current 220 tons to about 350 tons, corresponding to an annualized compound growth rate of about 12%. The company has a good growth attribute.
Urban mining business cut into the field of new energy metals, further thickening the company's profitability. Through the holding subsidiary Gold Industry Environmental Protection, the company disposes of hazardous wastes such as nickel and copper, collects disposal fees and refines new energy metals, and cooperates with the monohydrate manganese sulfate production line being built by Jinshan Mining to cut into the field of new energy metals. During the reporting period, renewable new energy metals achieved revenue of 27 million, accounting for 5% of the company's operating income, further implementing the new energy metals development strategy, expanding the company's related mineral products purchase and sales business and mine investment business in this field, and enhancing the company's market competitiveness.
Earnings forecast and investment rating: based on the high prices of silver and lead and zinc, and the future companies Jinshan, Dongsheng and Jinye subsidiaries have been put into production, assuming that 2021-2023 silver average price (including tax) respectively 5199, 5355, 5516 yuan / kg, the company is expected to return to the mother net profit of 463 million yuan, 530 million yuan, 623 million yuan, so far the latest 9.1 billion market capitalization, corresponding to 2021-2023 PE 201715X respectively. Maintain the company's "buy" rating.
Risk hints: silver price fluctuations, mining projects do not meet expectations, repeated epidemic and other risks.