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恒邦股份(002237):产能提升 矿山再发展

Hengbang Co., Ltd. (002237): Increase production capacity and develop the mine again

德邦證券 ·  Mar 27

Incidents. The company released its 2023 annual report. In 2023, the company achieved operating income of 65.6 billion yuan, an increase of 31.03% over the same period of the previous year; net profit attributable to owners of listed companies was 520 million yuan, an increase of 3.33% over the same period last year.

The sharp rise in the volume and price of precious metals and the decline in the price of sulfuric acid are the main reasons for the changes in the company's performance. In terms of precious metals, the volume and price of the company's precious metal products rose sharply in 2023. In terms of production, the company completed a total of 73.88 tons of gold production in 2023, an increase of 58.02% over the same period of the previous year; silver production was 952.47 tons, an increase of 15.38% over the same period last year. In addition, the company's gold product production capacity has been further increased, from 50 tons in 2022 to 98.33 tons in 2023.

In terms of product prices, the prices of gold and silver in 2023 were 449.91 yuan/gram and 5.56 yuan/gram respectively, up 14.7% and 17.8% year-on-year respectively. In terms of sulfuric acid, the price of sulfuric acid in 2023 was 237.05 yuan/ton, down 58.0% year on year from 2022. Affected by the decline in sulfuric acid prices, the company's sulfuric acid business profit declined, with gross profit of -162 million yuan.

The scale of the smelting business is expected to increase further. In 2023, the company completed the listing of convertible bonds, which boosted the development of its smelting business. In addition, according to the smelting project disclosed by the company in July 2023, the company plans to build a new set of 1.35 million tons of complex gold concentrate to treat 100,000 tons of gold hydrosmelting waste, 25,000 tons of copper-containing waste HW22, and 25,000 tons of non-ferrous smelting waste HW48. At the same time, it also uses a newly developed CR slag treatment process to recover precious metals while achieving comprehensive recovery of various elements such as copper, lead, and zinc. It is expected that the scale of the company's smelting business will increase further.

The mining business developed again, and the increase in the scale of self-production funds enhanced the company's resilience to risks. Over the years, the company has been increasing the supply of self-sufficient raw materials through various methods to reduce external dependence on production materials. As of the end of 2023, the company and its subsidiaries have completed reserve registration of identified gold resource reserves of 150.38 tons. Furthermore, when Jiangxi Copper acquired control of the company, it promised to use the company as a development platform for the Jiangtong gold sector, inject high-quality gold assets owned by Jiangxi Copper and its controlling shareholders into the company, regulate competition with the company's peers, and support the company's development. As of the disclosure date of the annual report, Jiangxi Copper has initiated an audit and evaluation process for the transfer of gold rights in Jiangxi, while continuing to advance the acquisition of Shiwu Gold Mine Warrants.

Investment advice. The company's smelting business and the scale of its own production capital have some room for improvement in the future. The company's net profit for 2024-2026 is estimated to be RMB 689, 10.15, and RMB 1,275 million, respectively. Maintain a “buy” rating.

Risk warning: prospecting and mining risks, product price fluctuation risks, raw material supply risks.

The translation is provided by third-party software.


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