23Q3 achieved a net profit of 844 million yuan, maintained the "overweight" rating company 23Q1-3 with a revenue of 8.853 billion yuan (yoy+25.29%) and a net profit of 2.337 billion yuan (yoy+140.11%), while 23Q3 earned 3.343 billion yuan (yoy+54.13%,qoq+16.64%) and 844 million yuan (yoy+173.81%,qoq+27.86%). Considering that the prosperity of the molybdenum industry is higher than expected, according to the hypothesis that the molybdenum price has been raised for 23-25 years since the beginning of 23, it is estimated that the return net profit of the company in 23-25 years will be 2.54 billion yuan respectively. Comparable company 23-year Wind unanimously expected PE 13.8X, giving the company 23-year 13.8XPE, corresponding to the target price of 12.79 yuan (the previous value of 11.79 yuan), to maintain the overweight rating.
The month-on-month rise in molybdenum price of 23Q3 pushes up the company's performance.
The company's profitability and profits are linked to molybdenum prices: according to Wind,23Q1-3, the global average price of pure molybdenum is 63.6,485,548,000 yuan / ton respectively, and the Q3 price is 12.99% higher than the previous month; the company's 23Q1-3 gross profit is 57.45%, 41.95% and 45.51% respectively, up 3.57% from the previous month. The net profit of Q1-3 is 8.33,6.60 and 844 million yuan respectively, and the Q3 ring increases by 27.86%.
The leading molybdenum industry chain is rich in molybdenum resources.
According to the record Table of Investor Relations activities of Gold and Molybdenum shares in September 2023 (23-9-25), the company has rich reserves of molybdenum resources and currently operates two large open-pit molybdenum mines. Jinduicheng Molybdenum Mine, which is controlled by Jinduicheng Molybdenum Mine, is one of the six largest primary molybdenum deposits in the world, with abundant reserves, high grade and low impurity content, and its product quality is suitable for deep processing. It has 465 million tons of ore resources, an average grade of 0.083%, and a service life of 35 years. Ruyang Donggou Molybdenum Mine has a resource of 471 million tons, an average grade of 0.120% and a service life of 57 years. In addition, the company also participates in Shapinggou Molybdenum Mine and Jide Molybdenum Mine, which are under construction and will contribute profits after completion.
Pay attention to technology research and development, adhere to innovation-driven
According to the record Table of Investor Relations activities of Gold and Molybdenum shares in September 2023 (23-9-25) and the quarterly report of 23 years, the company insists on innovation-driven, and the supporting role of science and technology continues to play a role: 1) continue to strengthen the management of scientific research projects, and 23Q1-3 has invested a total of 18700 yuan in R & D expenditure, an increase of 21.92% over the same period last year. 2) steadily promote the construction of the "four modernizations", and standardize the implementation of projects such as ferromolybdenum packaging automation research and production system on-line inspection research. 3) the overall plan for the construction of "Qin Chuangyuan" platform has been formed, the molybdenum industry innovation center has been established, and the production line construction and layout plans for incubation projects such as "molybdenum alloy seamless thin-walled tube", "molybdenum alloy tube target" and "ultra-fine molybdenum powder" have been basically determined. Fifth, accelerate the transformation of technological achievements, and successfully overcome the technical difficulties of "sticking neck" such as 4N molybdenum powder, low oxygen molybdenum powder, alloy molybdenum products and rolled sheet.
Risk hint: downstream demand is lower than expected, molybdenum production growth is higher than expected.