The 20-year net profit of homing increased by 218.43% over the same period last year, which was raised to the "overweight" rating. On April 22, the company disclosed its annual report, with operating income of 8.157 billion yuan in 20 years, an increase of 17.20% over the same period last year, and a net profit of 323 million yuan, an increase of 218.43% over the same period last year. Higher than we expected (20 years 202 million) The 20-year performance increase was mainly due to the restructuring and listing of Mount pass Mine Management Co., Ltd., which was held by the company on the New York Stock Exchange. the company earned about 487 million yuan from the performance of the cooperation agreement, and the prices of its main products increased during the reporting period. We estimate that in 21-23, the company's EPS will be 0.66 / 0.85 / 0.87 (previous value: 0.12 / 0.13), and will be upgraded to overweight rating.
The growth of the company's performance over the past 20 years was due to the increase in the prices of major products and the revenue obtained by MP (MP US). During the reporting period, sales of most of the company's products declined, but the rare earth concentrate increased significantly because of the underwriting of MP products; the increase in product prices partly offset the decline in sales, with a gross profit of 1.453 billion, up 47.23%, and a gross profit margin of 17.81%, an increase of 3.63 pct. The company's rare earth oxides / rare earth metals / rare earth salts / zircon sand / titanium concentrate / rutile / rare earth concentrate, year-on-year sales volume is-8.68%, 6.54%, 40.91%, 28.28%, 40.62%, 38.61, 69.23%, 39.69%, 3.14, 9.39, 5.04, 7.32, 26.93, 13.69, respectively. During the reporting period, the MP MINE OPERATIONS LLC (MP US) held by the company was reorganized and listed on the New York Stock Exchange. According to the relevant agreements, the company's income and incentive shares increased the 20-year net profit of homing by 487 million yuan.
The company will continue to improve the production and sales of rare earth metals and titanium-zirconium products in 21-22 years. According to the financial report, the company plans to achieve revenue of 9 billion yuan in 21 years, with a large increase in profits compared with the same period last year.
According to 21.01.19 "2021-2022 Business Development Plan", the production and marketing target of rare earth mines (trusteeship and underwriting products) during the 22-year period is 55.55 million tons, 21.24% higher than that of-28.40% in 20 years, 8260 tons in rare earth oxides, 14.35% in 20 years and-9.60% in 20 years, and the production and marketing target of rare earth metals is 9760 million tons, 13.77% higher than that in 20 years. The production and marketing target of titanium and zirconium products is 310,000 tons, 78.67% higher than that of 30.73% Universe in 20 years. The company plans to expand the scale, reduce costs and increase efficiency, and strive to achieve a revenue of more than 10 billion yuan and a net interest rate of 5% in 22 years. In addition, the company Lianyungang 1.5 million tons of zirconium and titanium mineral processing project is planned to be completed and put into production, and it is expected to form an average annual net profit of 158 million yuan after completion.
Taking advantage of the rare earth boom, it was upgraded to the rating of "increasing holdings".
In view of the fact that the demand in the downstream areas of the rare earth industry is expected to continue to improve, there may be a pattern of supply falling short of demand in 21 years, the industry is expected to continue in high spirits, rare earth prices are expected to continue to rise, and the superimposed company's production and sales are expected to improve in the future, and we upgrade our profit forecast and company rating. It is estimated that the 21-23 year net profit will be 11.52 million yuan, 1.495 billion yuan. Comparable company's 21-year average Wind unanimously expected PE 34. 1 times, giving the company a valuation of 34. 1 times PE,21 annual EPS. 66 yuan, corresponding to the target price of 22. 51 yuan, upgraded to overweight rating.
Risk tips: prices of rare earths and other products fall, affecting profitability and causing large-scale asset impairment; force majeure factors lead to raw materials can not be imported or production capacity is suspended.