Key elements of the report:
Silver Nonferrous is a listed company in the whole industry chain involved in the mining, smelting, processing and trade of basic metals such as copper and zinc and rare and precious metals such as gold and platin. it has huge reserves of domestic lead and zinc resources and overseas gold and platinum resources. In recent years, the company has continuously carried out technological innovation and completed the acquisition of overseas precious metal companies. At present, the strong demand for new energy vehicles drives the growth of demand for hydrogen fuel cells, which in turn leads to the demand for platinum. The platinum resources owned by the company are expected to add more help to the future development of the company.
Main points of investment:
Lack of domestic platinum resources, the company's rich platinum resources to enhance the future competitiveness of the company: platinum is an important rare and precious metal, with good chemical properties and investment value. China's platinum resources are only 365.30 tons, accounting for about 0.5% of the world's reserves, which is far from meeting the needs of development. Silver Nonferrous acquired a 19.82 per cent stake in Span through the acquisition of first Gold, which in turn shared its 6356.7 tons of platinum metals resources and 159m pounds of uranium resources.
The rapid development of fuel cell drives the demand for platinum, and the company's revenue is expected to increase: platinum, as a catalyst for hydrogen fuel cell, has excellent catalytic activity, stable in a wide temperature range, and has an irreplaceable position. The battery has strong battery life and short charging time, so it is an environment-friendly battery supported by national policy. However, the promotion of the battery is inseparable from the continuous supply of platinum, silver non-ferrous platinum resources are expected to become the main growth point of future performance.
Copper and zinc demand still has potential, the company's main business stable development: the company has copper reserves of 329000 tons, zinc reserves of 6.787 million tons. At present, domestic power consumption is still the main channel of copper consumption, and the power grid planning target of the 13th five-year Plan has not yet been completed. the development and construction of the State Grid in the future will still boost the demand for copper, and the domestic economic resilience still exists. the demand for copper in the home appliance building materials sector is expected to stabilize and pick up. At the same time, zinc smelting capacity is insufficient and zinc prices are supported. The company's main business copper and zinc plate still has room for performance growth.
Profit forecast and investment suggestion: it is estimated that the return net profit of the company in 19-21 is 1.79,2.64 and 356 million yuan respectively, and the EPS is 0.02,0.04,0.05 yuan respectively. The PE corresponding to the closing price of 4.39 yuan is 181.69, 123.09 and 96.98 times respectively, giving the "overweight" rating for the first time.
Risk factors: platinum mine grade decline, downstream demand of main products is lower than expected, national industry policy changes, raw material prices of main products fluctuate greatly, trade friction between China and the United States intensifies.