Events:
On August 14, 2017, the company held a semi-annual performance presentation meeting for 2017. The company's operating income in the first half of 2017 was 2.54 billion yuan, an increase of 81.2% over the same period last year. The net profit attributed to shareholders of the listed company was 179 million yuan, turning losses into profits, and the EPS was 0.09 yuan.
Main points of investment:
Aluminum price rebounds, recycled aluminum ushered in greater development
In 2017, the domestic and foreign economy rebounded, and China, as a big country in the aluminum industry, implemented supply-side reforms to reduce backward and excess capacity, which made the LME aluminum price stand at 1800 US dollars / ton and will continue to rise. The company mainly produces recycled aluminum, which is environment-and resource-friendly products. With this capacity removal policy, the company's recycled aluminum will gain a larger market share.
Holding a large number of waste aluminum enterprises and integrating international resources
Yiqiu Resources controls or indirectly controls more than 20 scrap metal treatment companies worldwide, distributed in Southeast Asia and the United States. Through various holding companies, the company can obtain real-time information on the treatment and sale of waste aluminum in the world. At the same time, the company purchases waste aluminum raw materials by integrating 9 domestic and foreign trading companies, the procurement cost is low, and it is one of the few domestic production enterprises whose aluminum alloy ingots are registered in LME and can actually be delivered and sold, and the product quality meets the standards of the international market.
Large production scale, long-term cooperation with large downstream companies
The company's total aluminum production reached 252600 tons and sales reached 313900 tons in 2016, which has a large scale in the recycled aluminum market at home and abroad. In addition, the company has become a supplier to a number of world-renowned automobile manufacturers, electrical and electronics manufacturers and their joint ventures or wholly owned enterprises in China, such as Honda, Nissan, Toyota, Mitsubishi, Philips, and so on.
Risk hint
It is estimated that the EPS of the company from 2017 to 2019 is 0.16,0.21 and 0.28 yuan respectively, and the corresponding PE is 32.8X, 25.1x and 18.3x respectively. The company is a green environmental protection production enterprise, and its products mainly focus on recycled aluminum ingots, and its production capacity is little affected by the production restriction policy. It is optimistic that after the acquisition of Metalico, the company will further develop the recycling production of scrap aluminum and scrap metal, and the company is expected to build two new companies next year and the year after next, and its production capacity will be further expanded. Cover for the first time and give a "recommended" rating.
Risk prompt content
1) industry fluctuations and policy changes; 2) product price fluctuations; 3) exchange rate fluctuations
