Shengda Resources is a leading enterprise in China, which firmly adheres to the development strategy of "primary mineral resources + urban mine resources". On the one hand, strengthen the management of existing mines and promote the expansion of precious metals and lead, zinc and other high-quality primary mineral resources represented by Baiyin; on the other hand, focus on the industrial chain of metal resources and take resource recovery as a starting point to layout urban mining business.
Domestic silver leader, internal extension, extension and expansion of resource reserves
The company is a leading domestic silver manufacturer, sitting on six high-quality primary mine resources, silver reserves of nearly 10,000 tons, obvious resource advantages. The company insists on making use of its own advantages, optimizing the stock, doing a good job in increment, expanding the reserves of primary mineral resources through internal tapping potential and external acquisition, and expanding the scale advantage of the industry. 1) promote the development of internal resources, and the production capacity of primary mines is expected to be greatly increased. The company has a total annual mining capacity of 1.98 million tons, including Inner Mongolia Yindu Mining (900000 tons), Jinshan Mining (480000 tons), Everbright Mining (300000 tons) and Chifeng Jindu Mining (300000 tons). At present, the company strengthens the fine management of existing mines, speeds up the development of internal resources and steadily promotes the construction of key mine projects, so as to promote the release of primary mine capacity. With the completion of Jinshan Mining's reconstruction and expansion to 900000 tons, Dongsheng Mining's 250000-ton mine construction project and Deyun Mining's 600000-ton probing mining capacity release, the company's long-term mining scale is expected to reach 3.25 million tons, with good growth. 2) the company plans to acquire Pigongtang, the largest lead-zinc deposit in Guizhou, which has recorded 3.2744 million tons of lead-zinc metal resources. The completion of the acquisition of the mine is expected to greatly increase the company's reserves of lead, zinc and other metal resources, and further improve the company's core competitiveness.
Layout urban mining business and enter into the field of new energy metals
Through the holding subsidiary gold industry environmental protection, the company takes resource recovery as the starting point to build a new energy industry chain of urban mines. The gold industry environmental protection is committed to the recovery and recycling of solid waste, actively expand the source of resources on the basis of environmental protection, and create a complete industrial chain for the recycling of new energy metals. The project is implemented in two phases. At present, the first phase of 200000 tons of hazardous waste treatment capacity has been formed, the second phase has completed the planning and process design. In addition, the company also built a 35000-ton manganese sulfate monohydrate production line through Jinshan Mining to cut into the field of new energy metals and complete the effective extraction and utilization of silver, manganese and gold. In the future, the company plans to integrate Jinshan Mining's manganese sulfate project and gold industry's environmentally friendly electrolytic nickel project into a new energy industry chain, demonstrating the construction of ternary high nickel precursor production line and high purity manganese sulfate production line, in order to explore the integration of ternary cathode materials for new energy batteries and form a new business growth point of the company.
Investment suggestion
We expect the company to achieve operating income of 1.699 billion yuan, 1.996 billion yuan and 2.371 billion yuan respectively from 2022 to 2024, an increase of 3.7%, 17.5% and 18.8% respectively over the same period last year. The net profit from 2022 to 2024 is expected to be 486 million yuan, 544 million yuan and 675 million yuan, respectively, an increase of 15.3%, 12.0% and 24.0% respectively. The PE corresponding to the current market capitalization is 17x, 15x and 12x respectively.
Cover for the first time, giving a "buy" rating.
Risk hint
Lead and zinc prices fluctuate sharply, silver prices fluctuate sharply, primary mine development and construction projects are not as expected, and the progress of new projects is not as expected.