Event: the company released the 2023 semi-annual report, during the reporting period, the company achieved operating income of 5.51 billion yuan, year-on-year + 12.52%, return net profit of about 1.493 billion yuan, year-on-year + 124.49%, deducted non-return net profit of 1.488 billion yuan, year-on-year + 126.05%. Among them, 2023Q2 achieved revenue of 2.866 billion yuan in a single quarter, + 8.23% year-on-year, and net profit of 660 million yuan and + 69.23% respectively, deducting non-return net profit of 659 million yuan and + 70.21%.
2023H1 molybdenum price upward, the company to reduce costs and increase efficiency measures in-depth implementation to jointly promote substantial growth in performance.
2023H1 achieved gross profit margin of 49.39%, year-on-year + 15.83pct, net profit rate of 30.29%, year-on-year + 13.69pct, mainly due to: the market demand of molybdenum industry continued to improve in the first half of the year. The cumulative average price of molybdenum oxide in MW was 27.08US dollars per pound of molybdenum, up 45% from the same period last year; and the cumulative average price of ferromolybdenum was 27.410,000 yuan / ton, up 58% from the same period last year. At the same time, by strengthening the current production and operation, seizing the market opportunity, adjusting the product structure in time, and strictly reducing the cost and increasing efficiency, the company's business performance has reached the best level in the same period in history.
The company is rich in resources and operates two large open-pit molybdenum mines. The main molybdenum products produced in 2022 are equivalent to molybdenum metal: molybdenum iron 15146 tons molybdenum, ammonium molybdate 6213 tons molybdenum, molybdenum powder 4947 tons molybdenum, among which Jinduicheng molybdenum mine is one of the six primary molybdenum mines in the world, with rich reserves, high grade and low impurity content. The product quality is especially suitable for deep processing, with 465 million tons of ore resources, with an average grade of 0.083%, and Ruyang Donggou molybdenum mine 471 million tons, with an average grade of 0.120%.
Investment suggestion: the company focuses on the main molybdenum industry, actively promotes the high-quality and sustainable development of the molybdenum industry, comprehensively implements the development strategy of "vertical integration and horizontal widening of the main molybdenum industry", deeply promotes the upgrading of industrial technology, and constantly enhances the comprehensive competitive strength of enterprises. According to the actual operating situation of the company in the first half of the year, we raised the return net profit of the company from 2023 to 2025 to 29,31.31 and 3.484 billion yuan respectively, the EPS was 0.9,0.97 and 1.08 yuan respectively, and the corresponding PE was 12.77,11.83 and 10.63 times respectively.
Risk tips: falling prices of major metal products; risk of international geopolitical disputes and trade protectionism; risk of interest rate and exchange rate fluctuations in financial markets.