This report is read as follows:
The company has a variety of metal industry chain, mainly copper and zinc, supplemented by lead, gold and silver, metal prices are currently high, and is likely to continue to rise, the company's future performance will be fully released.
Main points of investment:
Overwrite the overweight rating for the first time. Forecast company 2016-2018 EPS 0.04 pound 0.12 pound 0.13 yuan. The company has a variety of metal mining-smelting-processing industry chain, mainly copper and zinc, supplemented by lead, gold and silver, to a certain extent avoid the risk of single metal price fluctuations on the company. At present, metal prices (copper, zinc, lead) are high in recent years, and are likely to continue to rise, the company's future performance will be fully released. For the first time, the target price is covered by CNY 6.0CNY, corresponding to the 2016-2018 PE150/50/46 times, and the space is 20%.
Layout of polymetallic upstream, middle and lower reaches of the whole industry chain. Baiyin Nonferrous has a copper smelting capacity of 200000 tons and zinc smelting capacity of 280000 tons, ranking first in the country. At the same time, the company has domestic resources reserves of 430000 tons of copper, 1.28 million tons of lead and 5.91 million tons of zinc, as well as active distribution of foreign mineral resources. In addition, the company also distributes metal strip, foil, rod, tube and other processing fields. As a result, the company has formed the layout of the whole industry chain in the upper, middle and lower reaches of polymetals.
Benefit from the rise in metal prices. Since last year, the prices of basic metals have been rising, and the prices of precious metals as a whole belong to an upward trend. Silver Nonferrous, as a polymetallic mining and smelting enterprise of copper, zinc, lead, gold and silver, will benefit from the rise in metal prices. in particular, copper and zinc prices are currently maintained at 48000 yuan / ton and 22000 yuan / ton, the company's main copper and zinc plate performance will be greatly improved.
Risk hint: the risk of sharp fluctuations in metal prices and the risk of insufficient supply of raw materials.