Main points of investment
The company's performance increased significantly in 2016. For the whole year, the company achieved revenue of 55.95 billion yuan, an increase of 1.90% over the same period last year, a net profit of 252 million yuan belonging to shareholders of listed companies, an increase of 127.23% over the same period last year, and a deduction of 217 million yuan for non-net profit, an increase of 861.70% over the same period last year. Revenue and performance declined in the fourth quarter. In the fourth quarter, the company's revenue was 7.99 billion yuan, down 58.5% from the previous quarter; the net profit belonging to shareholders of the listed company was 261 million yuan, down 73.4% from the previous quarter.
The company's cathode copper margin fell sharply, gold and zinc gross margin increased greatly, but the overall gross margin decreased. In terms of output, mineral products have increased, the output of copper, gold and silver has increased greatly, and the smelting capacity of lead and zinc has decreased. From the gross margin point of view, the cathode copper gross margin declined seriously, gold, zinc greatly increased. The gross margin of cathode copper was mainly affected by the low copper price, and the average sales price per ton of cathode copper fell 4000 yuan in 2016 compared with the previous year. Gold and zinc were boosted by a rebound in prices, with gross margins soaring. The company will further increase its production of gold and copper in 2017.
The company is a polymetallic, whole-industry chain giant, and the overseas gold business is progressing smoothly. The company's business covers the whole industry chain links such as mining, smelting and processing of non-ferrous metal mines. At present, the reserves of copper, lead, zinc, gold and silver are 43.34, 127.93, 5.908 million tons, 16304.08 kilograms and 1667.19 tons respectively, with a total mining capacity of 4.1 million tons per year. Smelting capacity, the company has copper, zinc, lead smelting capacity of 200000 tons, 280000 tons, 30, 000 tons. The company's copper, lead and zinc output are among the top ten in the industry. In addition, the company controls the first Gold Company, and the overseas gold business is very effective.
Profit forecast: from 2017 to 2019, the company is expected to achieve EPS of 0.11,0.14,0.17 yuan respectively, corresponding to PE of 90X, 70X, 58x. Give an overweight rating.
Risk hint: risk of price fluctuation of non-ferrous metals; risk of overseas resources development