Focus on mine selection, actively develop new energy metals business, and promote endogenous and epitaxial collaborations. The main raw materials required by the company for production in production mines are its own ore, and the production model is production according to the planned assembly line. The sales channels for the company's products are mainly smelters and metal material processing enterprises. They also sell to traders, which then sell to smelters. Gold Industry Environmental Protection recycles solid hazardous waste containing nickel, copper, etc. from processing and manufacturing enterprises in upstream machining, metal surface treatment and electroplating, stainless steel production and processing, electronics industry, industrial sewage treatment, etc., and charges hazardous waste disposal fees from waste production units. After solid hazardous waste is smelted and disposed of, recycled nickel, ice and copper are sold to downstream metal deep processing companies, and the waste produced during the disposal process produces rock wool and sells it.
It is blessed with excellent resource conditions, outstanding talent and technical advantages, and is at the forefront of the industry. The company currently holds six mining subsidiaries, with silver reserves of nearly 10,000 tons and an annual extraction capacity of over 2 million tons. Years of industry experience and unique geographical conditions have given the company's mineral resources a strong advantage. In addition, the company has outstanding talents and technical advantages, has a team of highly skilled talents, and uses industry-leading first-class equipment for process equipment configurations.
Invest in the establishment of subsidiaries to enhance core competitiveness. The 17th meeting of the 10th board of directors of the company held on November 28, 2022 deliberated and passed the “Proposal on Investment and Establishment of Subsidiaries”, which agreed that the company would invest 500,000 Singapore dollars to establish a wholly-owned subsidiary in Singapore and 30 million yuan to establish a wholly-owned subsidiary in Shenzhen. Relying on the geographical advantages of Singapore and Shenzhen, it lays out overseas mergers and acquisitions business and enhances the company's core competitiveness.
Selected as specialized and new “little giant” enterprises to enhance brand awareness and market competitiveness. The Hunan Provincial Department of Industry and Information Technology issued the “Notice Concerning Announcing the 2022 Certification and Review List of Specialized and New “Little Giants” Enterprises in Hunan Province”. Hunan Jinye Environmental Protection Technology Co., Ltd., a subsidiary of Shengda Metal Resources Co., Ltd., was recognized as a “little giant” enterprise specialized in Hunan Province in 2022.
Profit forecasts and ratings. We anticipate that 2022-2024 will produce 220, 250 and 300 tons of silver respectively, and net profit of 2022-2024 will be 443, 467 and 568 million yuan respectively. At the same time, we expect the company's 2022-2024 EPS to be 0.64/0.68/0.82 yuan/share respectively, giving a 35-fold PE valuation in 2023. The corresponding reasonable value is 23.80 yuan, giving it a “superior market” rating.
Risk warning. The construction progress of the project fell short of expectations, and cost control fell short of expectations.