Events:
Baiyin Nonferrous Co., Ltd. is a company mainly engaged in non-ferrous metals, precious metal mining, mineral processing, smelting and Calendering processing; research and development, production and sales of mineral products and extended products; metallurgy, engineering and scientific research and technical services, R & D and consulting and other businesses. Revenue is expected to reach 58.988 billion yuan in 2016, with a net profit of 213 million belonging to the parent company. Baiyin Nonferrous listed A shares on February 15, 2017 and currently has a market capitalization of 81.9 billion yuan.
Comments:
The company now has rich mineral resources and good commercial reputation. Baiyin Factory Nonferrous Metals Company was established in 1954 with the approval of the former Ministry of Industry (renamed Baiyin Nonferrous Metals Company in 1960). After more than 60 years of development, Baiyin Factory has grown into a well-known supplier of non-ferrous metal products in the industry. the products are mainly cathode copper, lead ingots, zinc ingots, copper, lead, precious metal products and other products. China has 433400 tons of copper, 1.2793 million tons of lead and 5.908 million tons of zinc. Shouxin Peru has a polymetallic production capacity of 6.8 million tons per year. First Gold South Africa Co., Ltd. has gold resources reserves of 1220 tons and holds a 19.57% stake in Spanyi Gold Co., Ltd. It has 18 wholly-owned subsidiaries, 5 holding subsidiaries, 9 shareholding companies and 7 branches; it has famous trademarks such as "Baiyin", "Ibis" and "Dunhuang" and has a good commercial reputation.
The downstream of the company has a high-quality customer group: the downstream customers of the company are divided into raw materials, non-ferrous metal processing, alloy equipment manufacturing and other manufacturers, mainly including Jinchuan Group, Shaanxi Nonferrous Yulin New Materials Company, Tongling Nonferrous, Aluminum Corporation Of China Ltd, Daye Nonferrous, Yunnan Copper and other domestic non-ferrous industry high-quality customers.
Raise funds for the company's product production capacity: the total amount of funds raised by the company's IPO is estimated to be 1.242 billion, which is mainly used to expand mineral resources reserves and increase mountain production capacity, of which: mine resources acquisition (acquisition of 93.02% equity interest in Honglu Mining) total investment 1.173 billion, proposed to use raised funds of 1 billion The total investment in mining and construction (the deep development project below the eighth middle section of Xiaotieshan Mine) is 431 million, with 129 million of the funds to be raised.
Profit forecast and investment advice: according to the company's forecast: revenue in 2016 is 58.988 billion, profit is 610 million, net profit is 388 million, net profit is 213 million, current PE is 223 times.
Risk hints: material price fluctuations, exchange rate risks, macroeconomic development are not up to expectations.