Copper and cobalt have consolidated its main business, strategic layout, metamaterials and internet finance. Pengxin Global Resources Co., Ltd. was established in Shanghai in September 2000. It is a company mainly engaged in mining, smelting and trading of Congolese copper, while also strategically investing in metamaterials and internet finance. Shanghai Pengxin Group is the controlling shareholder of the company, and Mr. Jiang Zhaobai is the actual controller of the company. In 2016, the revenue of Company H was 1,349 million yuan, all from the cathode copper trade and cathode copper production business, and the gross profit of the company's main products came entirely from the cathode copper production business. The 40,000 tons/year integrated copper mining, processing and metallurgy project, the cost reduction and incremental efficiency guarantee company indirectly holds 36.38% of the shares in Situlu Mining in the Democratic Republic of the Congo (DRC) by holding 50.18% of shares in Pengxin Mining. The latter has a medium-sized high-grade Situlu open pit copper mine with reserves of 231,600 tons of metal and 4.43% grade. It has a mining scale of 900,000 tons/year and an annual production capacity of 40,000 tons/year of cathode copper. Currently, copper concentrate and cathode copper production both exceed 30,000 metal tons, production capacity is continuously being released, 2016 H production will increase by more than 10%, and 2016 A cathode copper is expected to exceed 34,800 tons. At the same time, the company reduced production costs by fully supplying sulfuric acid for production and recycling waste heat to generate electricity. In 2016, the production cost of H tons has been reduced to 20,936 yuan/ton, a decrease of 16.85%. Based on the assumption that the price of copper was 37,500 yuan/ton in October-December, the average price of copper will be 36,896 yuan/ton in 2016, and the gross profit for 2016 A will reach 379 million yuan, an increase of 26% over the previous year. On August 29, 2016, the company announced a fixed increase of 3.4 billion yuan to build a copper-cobalt production line to strengthen the main copper business. On August 29, 2016, the company announced a fixed increase plan to strengthen the main business with 3.4 billion yuan. At 8.45 yuan/share, 210 million shares were issued to Pengxin Group and Cheng Jianling to purchase the remaining 49.82% shares of Pengxin Mining Investment. It issued 201 million additional shares to actual controllers, control companies, etc., and raised 1.7 billion to build 20,000 tons/year cathode copper and 7,000 tons/year cobalt production lines. According to the Ruiki Research Report, the net profit after delivery will reach 337.234 million US dollars. At the same time, it cooperated deeply with Gerard to obtain 15.625% of its subsidiary's shares for 20 million US dollars, and has the right to increase 19.75% of its shares. It was also agreed that its subsidiary would be responsible for the supply of all copper-cobalt raw materials for the new construction project. Through the “industry+finance” model, innovative strategic layout, and Internet finance companies optimized the investment allocation. 750 million dollars participated in the fixed increase of Longsheng shares, and the layout was supermaterial. Longsheng Co., Ltd. has a fixed price increase of 7.13 yuan/share. The latest closing price is 43.81 yuan/share. The company's investment profit has reached 3.858 billion yuan. Shanghai Tongshan Internet Finance Company increased its capital by 40 million yuan to lay out internet finance. Transfer all 44.55% of Emerson Gold Mountain and divest all of its chemical assets. Profit forecast and valuation: Target price is “11 yuan/share”, investment rating “buy”. If the fixed increase plan is completed in 2016, the EPS for the 2016-2018A company will be 0.067 yuan/0.098 yuan/0.131 yuan/share, respectively, and the corresponding BPS will be 2.81 yuan/2.87 yuan/2.94 yuan, respectively. Referring to comparable companies, we can give the company 2016 A/2017A/2018A PE of 165 times/112 times/84 times, and PB of 3.9 times/3.8 times/3.7 times, respectively. Considering that the fixed increase plan still needs to be approved, there is uncertainty about the completion time, so it will not be merged for the time being. Based on the above. Assuming that 8.2/times 8.5/times 8.8 are PB times, and 300/times 289 is PE, respectively, we predict that the company's EPS for 2016 A/2017A/2018A will be 0.038 yuan/0.037 yuan/0.037 yuan, respectively, and the corresponding BPS will be 1.25 yuan/1.29 yuan/1.34 yuan, respectively. Giving the company the risk of 2016A/2017A/2018A suggests that the Congo's political risks, the risk of exchange rate fluctuations, and investment returns in excess material projects fall short of expectations