Main points of investment
The company's shareholders have a deep background. Citic Group, Guoan Group and Gansu Provincial SASAC are all major shareholders of the company.
Among them, the direct and indirect shareholding ratio of Gansu SASAC to the company is 41.08%, which is the largest shareholder of the company. Citic Group and Guoan Group are concerted actors, and together they hold a 39.05% stake in the company. Gansu SASAC, CITIC Group and Guoan Group are all major shareholders, which is beneficial for the company to not only get local support, but also rely on the strong financial and overseas support of CITIC Group.
The company is a giant of polymetal and whole industry chain. 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 output of copper, lead and zinc ranks among the top ten in the industry. In this IPO, the company plans to raise 1 billion yuan to acquire 93.02% of the equity of Baiyin Honglu and continue to distribute resources.
Layout of precious metals and development of overseas gold business. Through the acquisition of overseas platform companies, the company owns or controls four companies overseas, and controls the rich reserves of overseas resources by investing in a package of investment projects such as Banro and Longming. The overseas gold business contributes 40% of the company's gross profit and has outstanding competitive advantages in overseas markets. the company plans to implement the strategy of attaching equal importance to precious metals and basic metals in the future.
Profit forecast and valuation: we expect the company to achieve net profit of 355 million yuan, 955 million yuan and 1.023 billion yuan respectively from 2016 to 2018, and corresponding EPS of 0.06,0.15,0.16 yuan respectively. According to the comparable company valuation method, we think that it is reasonable to give the company 40 times 50 times PE, and the corresponding share price is 6.0 yuan to 7.5 yuan.
Risk hint: risk of price fluctuation of non-ferrous metals; risk of overseas resources development