Introduction to this report:
The company has an entire multi-metal industry chain, mainly copper and zinc, supplemented by lead, gold and silver. Currently, metal prices are high and are likely to continue to rise, and the company's future performance will be fully unleashed.
Investment highlights:
This is the first time to cover the increase in holdings ratings. The company's 2016-2018 EPS is predicted to be 0.04/0.12/0.13 yuan. The company has a full mining, smelting and processing industry chain for various metals, mainly copper and zinc, supplemented by lead, gold, and silver, which avoids the risks posed to the company by fluctuations in the price of single metals to a certain extent. Currently, metal prices (copper, zinc, lead) have been high in recent years, and are likely to continue to rise, and the company's future performance will be fully unleashed. For the first time, it covered the target price of 6.0 yuan, corresponding to the 2016-2018 PE150/50/46 times, space 20%, increase in holdings rating.
Lay out the entire upstream, middle and downstream industrial chain of polymetals. Nonferrous silver has a copper smelting capacity of 200,000 tons and zinc smelting capacity of 280,000 tons, ranking among the highest in the country. At the same time, the company has domestic resource reserves of 430,000 tons of copper, 1.28 million tons of lead, and 5.91 million tons of zinc, and is also actively deploying mineral resources abroad. In addition, the company also lays out processing fields such as metal strips, foils, bars, and tubes. With this, the company formed the layout of the entire upper, middle, and downstream polymetallic industry chain.
Benefiting from rising metal prices. Since last year, the price of basic metals has been rising, and the price of precious metals as a whole is also on an upward trend. As a multi-metal sampling and smelting enterprise for copper, zinc, lead, gold and silver, non-ferrous silver will benefit from rising metal prices. In particular, the price of copper and zinc currently remains at 48,000 yuan/ton and 22,000 yuan/ton, and the company's performance in the most important copper-zinc sector will improve dramatically.
Risk warning: risk of sharp fluctuations in metal prices, risk of insufficient supply of raw materials.