Event: in the first half of 2017, the company achieved operating income of 7.786 billion yuan, an increase of 29.26% over the same period last year, and a net profit of 85.4904 million yuan, an increase of 148.58% over the same period last year. During the reporting period, the company produced 203100 tons of electrolytic lead, 44100 tons of cathode copper, 3903 kilograms of gold and 436 tons of silver.
Core ideas:
The price of non-ferrous metals has warmed up, and the company's profitability has improved.
In the first half of the year, the prices of lead, copper and silver, the company's main products, rose 32%, 28% and 18% respectively over the same period last year, and the gross interest rate of electrolytic lead increased by 4.99% compared with the same period last year. At the same time, the company revolves around the working idea of setting targets, increasing production and creating efficiency, and a number of technological indicators have reached the best level in history, ensuring the growth of the company's business income and profits.
Business transformation and upgrading to develop circular economy
The company is one of the most qualified and competitive enterprises in the national recycled lead industry, creating a new model of the combination of recycled lead and primary lead. During the reporting period, the company continued to promote the waste lead-acid battery recycling network system construction project, the project covers six provinces, the first to build a national waste battery recycling network. In order to achieve the purpose of energy saving, emission reduction and environmental protection, the company has invested in the construction of recycled lead resources and efficient clean production technology transformation project, and plans to build a 160000-ton electrolytic lead production line to replace the original two 80, 000-ton production lines. at present, the project has been started.
Environmental protection becomes stricter and large-scale recycled lead plants benefit
In recent years, the domestic environmental protection situation is becoming stricter, the domestic small and medium-sized recycled lead plants are basically closed, the waste lead-acid batteries begin to concentrate to the regular channels, and the raw material supply of large-scale recycled lead factories is improved. As the first company to layout the national waste lead-acid battery recycling network, the company is expected to occupy a larger market share.
Maintain a "buy" rating
Lead prices remain high, large-scale recycled lead plants benefit from the integration of recycled lead industry, and the company's profits are improving. It is estimated that the company's EPS in 17-19 will be 0.19,0.26 and 0.33 yuan respectively, and the PE of the corresponding share price will be 44 times, 31 times and 25 times respectively, maintaining the "buy" rating.
Risk hint: metal prices fluctuate greatly; project construction is not as expected.
