The 21-year return net profit increased by 24.16% compared with the same period last year, maintaining the "overweight" rating. On March 21, the company released its annual report, with revenue of 41.383 billion yuan (yoy+14.78%) in 21 years. The net profit of home ownership was 455 million yuan (yoy+24.16%), which was lower than our previous forecast of 509 million, mainly because we overestimated the company's gold production in 2021 and the gold business income was overestimated. 21Q4 realized revenue of 9.56 billion yuan (yoy+24.0%, qoq-8.7%) and net profit of 106 million yuan (yoy-29.0%, qoq-8.9%). We estimate that the EPS for 22-24 years is 0.57 PE 0.61 pound 0.68 yuan (previous value 0.56 prime 0.63 pound-yuan), and the average PE (2022E) of the comparable company is 15.7X (consistent Wind expectation). Considering the company's future prospects as the precious metal integration platform of Jiangzhong, we will give the company 19.6 times PE for 22 years, corresponding to the target price of 11.17 yuan (the previous value is 14.08 yuan), and maintain the "overweight" rating.
In the past 21 years, the volume and price of electrolytic copper products have risen, and the company's performance has achieved year-on-year growth. According to the company's annual report, 2021 company gold output 39.6t (yoy-17.33%), silver production 757.2 tons (yoy-5.53%), decline, electrolytic copper production 194800 tons (yoy+19.48%), sulfuric acid production 1.3747 million tons (yoy+10.30%). Among them, the company's revenue of electrolytic copper products reached 12.01 billion yuan (yoy+89.58%), mainly because the volume and price of electrolytic copper products rose, the 21-year gross profit margin of electrolytic copper was 3.93% (yoy+3.26pct), and the profitability was significantly enhanced. In addition, the company's sulfuric acid products achieved a revenue of 470 million yuan (yoy+437.46%) and a 21-year gross profit margin of 45.81% (yoy+150.22pct), turning losses into profits.
The company's profitability improved compared with the same period last year, and asset impairment and investment gains and losses dragged down the company's performance in the past 21 years. The rates of sales, management, R & D and financial expenses were 0.05% (yoy+0.00pct), 1.55% (yoy+0.21pct), 0.33% (yoy+0.04pct) and 0.86% (yoy-0.04pct), respectively. Among them, the increase in the rate of management expenses compared with the same period last year is mainly due to the fact that the cost of mine shutdown is included in the management expenses of the current period, and the decrease in the rate of financial expenses compared with the same period last year is mainly due to the fact that the company successfully obtained the AA+ credit rating in 21 years and successfully issued two issues of ultra-short-term financing bills and one medium-term note, which reduced the financing cost. In 21 years, the company's gross sales margin was 15.44% (yoy+3.53pct), the net sales margin was 8.71% (yoy+3.78pct), and the company's profitability improved compared with the same period last year. In addition, the company set aside 188 million of the provision for asset impairment in 21 years, and affected by the loss of invalid hedging, the investment income recorded-145 million, affecting the company's performance.
The company's key projects continue to move forward, maintaining the "overweight" rating.
According to the company announcement, the Liaoshang Gold Mine expansion project, the key project of the company, obtained the mining license in 2020, and is currently actively preparing the project to promote the sustained growth of the company's profits after the construction project reaches production. In addition, the company holds 20.87% of Wanguo Mining through resource mergers and acquisitions, laying the foundation for overseas mining resources mergers and acquisitions in the future. We estimate that the EPS for 22-24 is 0.57 PE 0.61 PE, and the average PE (2022E) of the comparable company is 15.7X. Considering that the company is the precious metal integration platform of Jiangzhong, we will give the company 19.6 times of GCC for 22 years, corresponding to the target price of 11.17 yuan, and maintain the "overweight" rating.
Risk tips: environmental protection and other policies lead to a decline in production, and tightening of monetary policy leads to a drop in commodity prices.