The performance is in line with expectations, waiting for industrialization to accelerate.
The company issues 16-year annual report and 17-year first-quarter performance forecast. Revenue reached 865 million in 2016, an increase of 32.14% over the same period last year, and net profit belonging to shareholders of listed companies was 333 million, an increase of 94.47% over the same period last year. The net profit attributable to shareholders of listed companies in the first quarter of 2017 was 6600-77 million, an increase of 51.89% and 77.20% over the same period last year. The 16-year performance was in line with expectations and continued to maintain high growth in the first quarter of 17.
Technology creates high barriers and is expected to accelerate industrialization.
The company's original regenerative rotary hearth furnace and hydrogen shaft furnace technology is the world's leading, a wide range of applications, strong economy, is gradually entering the stage of accelerated industrialization. ① Shagang project can achieve annual sales of about 250 million yuan, profit of 80 million yuan, investment payback period of about 3 years, good economy. ② 's first non-ferrous tailings utilization project, Jinchuan Phase I Copper tailings Comprehensive Utilization Project, is the choice that Jinchuan Group has been looking for in the world for ten years. After the demonstration project has been put into production, many domestic non-ferrous giants have signed cooperation framework agreements with the company, and follow-up orders are expected to be gradually landed. ③ laterite nickel ore industrialization project has not yet been completed and put into production, but similar orders have exceeded 8.2 billion yuan, reflecting the owner's confidence in the company's technology. At present, the amount of orders in hand is 11 billion, and the technology has been greatly recognized by the owners.
The space for each market segment is huge, and everything is just beginning.
The company is not only an enterprise that can only deal with waste ore, but also has a global leading cost advantage in many metal smelting fields, such as nickel, vanadium and titanium. The market space of each industry segment of the company is huge, including: ① bulk solid waste disposal market space 130 billion; ② mineral resources comprehensive utilization market space 150 billion; ③ energy saving and environmental protection process reengineering market space 150 billion; ④ traditional business market space 100 billion. With the gradual release of the company in the market of major solid waste, comprehensive utilization of refractory mineral resources, steel smelting process reengineering and other business sectors, there is great potential for future development, and everything has just begun.
The change of directors introduces new industry resources, and executives increase their confidence.
On March 9, the former chairman of the company, Dr. Wu Daohong, resigned, and Mr. Song Bin, former president of the development of Baosteel, became the chairman of the company. Mr. Song Bin has accumulated a lot of contacts in the iron and steel smelting industry, and General Manager Song's joining will provide a strong boost to the market development of the company's various businesses. On February 28, the company's five core executives increased their holdings by 133 million yuan through the secondary market, with an average cost of 32.13 yuan per share, demonstrating their firm confidence in the future development of the company.
Profit forecast and investment rating:
We reiterate that the company is the global leader in technology, large market space and definite target for growth in environmental technology stocks. We expect the company's net profit for 17-18 years to be RMB 683,000,000, corresponding to a PE of 37x25, which will continue to maintain a "buy" rating.