Comments: the performance increased by 670.98% over the same period last year. The company recently released its 2014 annual report, and its revenue during the reporting period was 1.093 billion yuan, an increase of 3.77% over the same period last year. The net profit was 25.16 million yuan, an increase of 670.98% over the same period last year.
The return on investment has greatly reduced the loss. During the reporting period, the company's investment income was-6.14 million, a decrease of 37.2 million compared with the same period last year. Guizhou Rongguang Mining Co., Ltd., which was invested by the company, was in a state of loss in the first half of 2013. Because the amount of its loss has exceeded the company's investment cost and no longer accounts for 50% of its net profit, the company's investment loss in 2014 decreased compared with the same period last year. At the same time, Qingdao Hongxing Logistics Industry Co., Ltd. invested by the company reduced its losses in 2014 compared with the same period last year.
Manganese salt gross profit margin increased. During the reporting period, the company's gross profit margin of manganese salt was 11.66%, an increase of 6.92% over the same period last year. Manganese products were mainly affected by the further reduction in production costs of EMD and high-purity manganese sulfate products, and the gross profit margin increased.
High purity manganese sulfate benefits from the rapid growth of ternary cathode materials. During the reporting period, the company sold 3542 tons of high-purity manganese sulfate, an increase of 27.32% over the same period last year, mainly because the company seized the opportunity of increasing demand for downstream ternary cathode materials to expand the sales of high-purity manganese sulfate products. In the future, high-purity manganese sulfate will continue to benefit from the explosive growth of new energy vehicles.
The "overweight" rating is given for the first time, with a target price of 17.68 yuan. The company's 14-year performance increased significantly compared with the same period last year, investment income significantly reversed losses, while manganese salt gross profit margin increased, paying attention to the expected reform of state-owned enterprises and the amount of high-purity manganese sulfate. It is estimated that the company's EPS in 15-17 years will be 0.13,0.26,0.38 yuan respectively. With the expectation of state-owned enterprise reform and benefiting from the explosive growth of new energy vehicles, the company has given the company 68 times PE in 16 years, corresponding to the company's target price of 17.68 yuan, and has been rated as "increasing its holdings" for the first time.