Event: the company announced that the company announced three quarterly reports: revenue of 1.104 billion yuan, an increase of 96.33% over the same period last year, and a net profit of 87 million yuan, an increase of 0.97% and 0.10%.
Slight increase in performance and short-term debt service pressure: 1) slight increase in performance: during the reporting period, the company achieved revenue of 1.104 billion yuan, an increase of 96.33% (previous value + 23.47%) over the same period last year, which was mainly due to the increase in income from real estate business and mineral business during the period; realized net profit of 87 million yuan, an increase of 2.83% (previous value + 197.80%) 2) ROE decline: during the reporting period, the company's ROE was 4.81, which decreased 3.01pc compared with the same period last year, and the sales gross profit margin was 30.4%, which decreased 13.1pc compared with the same period last year, which was obviously dragged down by the decline in gross profit margin. During the period, the company's net sales profit margin decreased by 7.14pc compared with the same period last year, which became the main reason for the decline in ROE during the period. 3) the debt repayment pressure has increased: the company's asset-liability ratio during the reporting period was 76.79%, an increase of 9.05pc over the same period last year, mainly due to an increase in borrowing for business expansion during the period; the monetary capital on hand was 376 million yuan, a decrease of 49.40% over the same period last year, and the net debt ratio was as high as 165.35%. The debt repayment pressure of the company increased in the short term. In the future, with the expansion of the company's "finance +" territory, Tianye small loan and other strength, the company's financial stability will be strengthened.
Mining industry plus code, layout frequently: 1) extension new Pajingo project: the company announced on August 17th that it would bid for Conquest Mining's shares in CQTGold100%, CQTHoldings100% and the exploration rights numbered EPM15597, with an overall transaction consideration of A $52 million. Since then, the company has added yards to the mining layout and successively established Jirui Mining and Tiandi International Mining. 2) Investment and establishment of Jirui Mining: on September 8th, the company announced that it intends to invest 51 million yuan to set up a wholly-owned subsidiary, which will help the company to further expand the space for mining development and strengthen the company's mining investment and financing operation capacity; 3) invest in the establishment of Tiandi International Mining: October 14, the company announced that it intends to set up Tiandi International Mining together with Geomo shares, of which the company intends to invest US $9.8 million and hold 49%. This time, a subsidiary has been set up to carry out overseas mineral resources project exploration and development, overseas mining mergers and acquisitions, and effectively reduce the risk of overseas mergers and acquisitions.
Integration of industry and finance and strategic promotion: 1) termination of fixed increase: the company announced in December 15 a proposal for a non-public offering of no more than 267 million shares to six specific investors, with a total amount of no more than 3.2 billion yuan to be used for investment in Tianye small loans, Boshen leases, etc., and then terminated the fixed increase based on careful consideration of the capital market and policy environment. And said that it will continue to promote the strategy of combination of industry and finance, and enhance the strength of Tianye small loan and Boshen lease in a variety of ways; 2) increase capital of Boshen lease: on September 8, the company announced that Feimaile, a wholly-owned subsidiary, plans to increase its capital by US $12.5 million to Boshen lease. after the capital increase is completed, the registered capital of Boshen lease will be increased from US $30 million to US $80 million. This capital increase is in line with the strategic needs of the company's development, helps to optimize the financial structure of Boshen Leasing, enhance its financial strength and business undertaking capacity, and improve its core competitiveness.
Investment suggestion: the company's real estate business is on the front line, which is expected to bring new growth points of real estate business in the future; mining business has identified nearly 2 million ounces of gold and metal through optimizing mineral processing forms, while expanding the industrial chain to increase sales of black dog ore, the performance commitment has been basically completed. In addition, the company's mining layout renewed, actively layout the "finance +" territory, combined with the company's capital-intensive real estate and mining, financial assistance geological and mineral resources, to better achieve the combination of industry and finance, complement each other; we have gold reserves per ton corresponding to 160-200 million market capitalization space, the company's previous 2 million ounces corresponding to 56.7 tons, the original gold mine part corresponding to 11 billion market capitalization. Through the acquisition of the Pajingo project, the gold mine increased by 574000 ounces, corresponding to 16.3 tons, and the market capitalization increased by 3 billion. In addition, the company's real estate business RNAV valuation of about 4.5 billion, financial venture capital business valuation of 1 billion, we expect a reasonable valuation of the company at 19.5 billion (of course, this valuation has not taken into account the company's future gold extension and the value-added part of first-tier urban land) corresponding to a reasonable price of about 22.03 yuan, maintaining the "buy-A" rating.
Risk tips: performance below expectations, gold price fluctuations
