Events:
The company today released its semi-annual report for 2013. the announcement showed that the company's operating income in the first half of the year was 1.0198077 billion yuan, down 27.85% from the same period last year, and the gross profit margin was 7.57%, up 0.27% from the same period last year. The net profit belonging to the shareholders of the superior company was 28.3897 million yuan, down 44.71% from the same period last year. The net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 25.9329 million yuan, down 46.46% from the same period last year. Earnings per share were 0.11 yuan, compared with 0.27 yuan in the same period last year.
Comments:
Basic situation of the company: formerly known as Jinzhou Hualong Dayou Ferroalloy Co., Ltd., on August 27, 2009, the company was changed into a joint stock limited company. On August 24, 2012, the company's shares were listed on the Shanghai Stock Exchange. The company is a large domestic molybdenum industry enterprise, with integrated production capacity of roasting, smelting, molybdenum chemical industry and molybdenum metal deep processing, as well as mining rights and exploration rights. with the completion of the investment project, the company will develop to molybdenum mining and concentration. improve the self-sufficiency rate of molybdenum ore. At present, the company's products are divided into molybdenum furnace material, molybdenum chemical industry, molybdenum metal three series, molybdenum furnace charge mainly includes roasted molybdenum concentrate, molybdenum iron, molybdenum chemical industry mainly includes ammonium molybdate, high purity molybdenum oxide, molybdenum metal mainly includes molybdenum powder, molybdenum plate, molybdenum rod and molybdenum top, etc.
The price of molybdenum products was low in the first half of the year, and the company's operating income declined. In the first half of 2013, the domestic macro-economic operation is weak, the demand for molybdenum products is low, and the price is weak. In the first half of 2013, the average prices of steelmaking molybdenum bars, primary molybdenum powder and molybdenum concentrate (45%, Henan) were 223663.93 yuan / ton, 218245.90 yuan / ton and 1617.73 yuan / ton, respectively, down 18.67%, 20.64% and 10.06% from the same period last year. Since June 2013, the price of molybdenum products in China still shows a narrow fluctuation and a weak downward trend.
The company adopts the business model of "fixed production by sales", and the gross profit margin has increased steadily in recent years. In the first half of 2013, the company's comprehensive gross profit margin increased by 0.27% to 7.57% over the same period last year. In terms of products, the gross profit margin of molybdenum chemical industry and molybdenum metal increased by 5.24%, 0.27% to 14.35% and 1.07%, respectively, and the gross profit margin of molybdenum furnace charge decreased by 0.04% to 7.21% over the previous year.
The company's long-term business objectives are clear. The company's existing ferromolybdenum smelting capacity is 15200 tons / year, roasting molybdenum refined minerals is 30300 tons / year, ammonium molybdate processing capacity is 3000 tons / year, high purity molybdenum oxide processing capacity is 3000 tons / year, molybdenum metal products deep processing capacity is 30300 tons / year. In the next three years, the company plans to achieve ferromolybdenum smelting capacity of 20000 tons / year, roasting molybdenum concentrate capacity of 38100 tons / year, ammonium molybdate processing capacity of 6000 tons / year, molybdenum products manufacturing capacity of 1000 tons / year.
Earnings forecast: we expect the company's EPS in 2013, 2014 and 2015 to be 0.29,0.41,0.46 yuan respectively, and the current PE corresponding to the stock price is 42.48,29.28,26.60 times respectively. With the completion of the fund-raising project, the company's molybdenum concentrate raw material self-sufficiency rate, molybdenum deep processing capacity will gradually improve, the company will usher in a new profit growth point. However, in view of the current weak economic environment and the background of the molybdenum market downturn, the company is temporarily given a "neutral" rating.
Investment risk:
1. Molybdenum market remains in the doldrums
2. The schedule of the fund-raising project has been delayed.
3. Under the condition that the company has not yet achieved self-sufficiency in raw materials, large domestic molybdenum enterprises have adopted the strategy of low price to increase their market share for a long time.