Release the three-quarter report for 2022, and the performance growth is in line with expectations.
According to the company's quarterly report for 2022, the company achieved 3.169 billion yuan in revenue from January to September this year, an increase of 58.21 percent over the same period last year, 368 million yuan in net profit, an increase of 85.99 percent, and 363 million yuan in non-return net profit, an increase of 87.30 percent over the same period last year. The increase in performance is mainly due to a large increase in the price of rare earths compared with last year, thickening profits.
2022Q3, the company achieved revenue of 968 million yuan, up 125.72% from the same period last year, down 2.5% from the previous year; net profit from the home was 63 million yuan, up 122.5% from the same period last year, down 54.0% from the previous year; and deducting 62 million yuan from the non-homed net profit, an increase of 129.34% over the same period last year and a decrease of 53.0% from the previous month.
Strategic reorganization completed, China rare Earth Group's only listing platform
China rare Earth Group will keep pace with Northern rare Earth Group to form a supply pattern of "one south, one north, one light and one heavy", and jointly dominate the domestic rare earth industry.
After the completion of the strategic restructuring and transfer, China rare Earth Group directly and indirectly holds a 40.08% stake in Minmetals. The controlling shareholder of Minmetals is still Minmetals rare Earth Group, and the actual controller is changed from China Minmetals to China rare Earth Group; finally, the actual controller is still SASAC of the State Council.
As the only listing platform of China rare Earth Group, China rare Earth has a bright future. Relying on the group's resources, the company will further expand rare earth resources, internal intensive cultivation and external attention to the market, so as to enhance the company's core competitiveness.
At present, the China rare Earth Group and listed companies are continuing to sort out and study the internal and external rare earth related assets and industrial layout, and the rare earth related resources within the group are expected to be integrated into the company. In particular, the assets of companies with good profitability and listing conditions within the group will be given priority to be injected into the company.
The price of rare earths continues to pick up, and the company is expected to see both volume and price rise.
The price of rare earths continues to pick up, benefiting from strong demand downstream. Industries represented by new energy, wind power generation and industrial robots have maintained a high growth rate, driving up the demand for NdFeB with rare earths as raw materials, thus forming a strong support for the price of rare earths. In the long run, rare earth prices are expected to continue to rise, prices remain at a high level of volatility.
Profit forecast and valuation
It is estimated that in 2024, the company's operating income will be 48.52%, 63.31%, 7.911 billion yuan, respectively, an increase of 63.18%, 30.48%, 24.95%, respectively, and the homing net profit will be 4.49, 574, and 721 million yuan, respectively, an increase of 129.66%, 27.84%, 25.60%, and the corresponding EPS is 0.46, 0.580.73 yuan, respectively.
Based on the closing price of 29.36 yuan on October 28, 2022, the corresponding PE from 2022 to 2024E is 65.24 and 51.03 respectively. Cover for the first time and give a "recommended" rating.
Risk hint
The price fluctuation of rare earths is higher than expected; the production of overseas rare earth mines is higher than expected; and the downstream demand is lower than expected.