The layout of the whole industry chain of Baiyin: the company is a comprehensive service provider of the precious metal industry with silver as the core and the layout of "mining-smelting recovery-intensive processing-innovative business". The company produces 1300 tons of silver in 2017, and the new production capacity is expected to reach production in 2019. At that time, the refining capacity of Silver smelter is expected to reach 2000 tons / year, hitting the top three leading silver smelting enterprises in the world.
Resource recovery casts the recycling advantage of the industrial chain: the company uses the funding of the National 863 Program to develop clean "arsenic-free silver smelting" new process technology and comprehensive recovery technology. Build "2000 tons / year clean extraction and expansion of high pure silver", 30,000 tons of secondary antimony resources comprehensive utilization "," 50,000 tons lead matte project ", the main performance and profitability of the project will be greatly improved, at the same time, the level of technological research and development will also achieve new breakthroughs. The company has full development potential in the later stage, gradually completing to advance to the world-class precious metal producer.
Actively expand upstream resources: through the acquisition of Jinhe Mining and Junlong Mining, the company's raw material self-sufficiency rate of electric lead is expected to reach 30% and 40% by 2020, and the raw material self-sufficiency rate of electric silver has also increased slightly, effectively alleviating the company's raw material price risk and improving the company's profitability. Meanwhile, in May this year, the company announced plans to acquire a 100% stake in Jiayu Mining and a 65% stake in Chifeng Yubang Mining. Yubang Mining has the mining right of silver-lead mine in Shuangjianzishan mining area, Balinzuoqi, Inner Mongolia. The mine is the largest silver mine in China, and its silver reserves rank among the top 10 in the world. It has been found that the amount of silver metal, lead metal and zinc metal has reached 18602 tons, 861400 tons and 392300 tons respectively. If the acquisition is successful, the company's silver equity reserves will reach more than 13000 tons, surpassing Societe Generale Mining to become the first in the country and in the forefront of the world.
The ratio of gold to silver is high, the value of silver is prominent, and we are optimistic about the thickening of the company's performance: at present, the gold-to-silver ratio has returned to a high of about 80, and we believe that there is limited room for silver to fall. As the US dollar interest rate hike comes to an end, the US dollar weakens. Silver prices are expected to usher in a long-term bull market under the basic support of good support. At the time when silver ushered in the return of value, the company's performance flexibility increased, which is worth looking forward to.
Investment suggestion: we expect the company's revenue to reach 117.20 / 126.93 / 14.025 billion yuan in 2018-2020, net profit of 3.20 / 3.73 / 417 million yuan, EPS0.33/0.39/0.43 yuan per share, corresponding to PE20.84/17.86/15.97 times. Give a recommended rating
Risk Tip: acquisition failure risk fundraising project construction is less than expected product price fall risk
