The integrated industrial chain of electricity, mining, smelting and processing is the characteristic of Luoping Zinc Power. At present, Luoping Zinc Power is the only company with its own hydroelectric power among the listed companies in the domestic zinc industry. as a result, the power cost of the company's zinc ingot production has obvious advantages, and the company's hydropower cost is about 0.07 yuan / degree.
The company's resources reserves and zinc concentrate annual output scale advantage is not obvious, compared with other domestic zinc resources companies is smaller. The company currently controls the remaining reserves of zinc rights and interests of about 300000 tons, and is expected to produce 50, 000 tons of zinc ingots and 8000 tons of zinc concentrate in 2007.
The fund-raising project is conducive to the sustainable development of the company, in which the introduction of oxygen pressure leaching technology is the main point. The economy of this process is mainly reflected in that the raw material cost of high-iron sphalerite can be saved by 10%. The direct recovery of zinc is increased from 86% to 95%, the comprehensive recovery is increased by about 1-2%, and the technological process is further shortened. Under the current market conditions, the production cost of per ton zinc can be reduced by about 2000 yuan / ton compared with conventional wet zinc smelting.
The growth of the company in the next two years is mainly reflected in the growth of zinc concentrate production and the completion of the oxygen pressure leaching process technical transformation project, the output scale is expanded, and the cost has a lot of room for reduction. It is estimated that in 2006-2008, the company's main income will reach 905 million yuan, 1.394 billion yuan and 1.552 billion yuan respectively, and the net profit will be 76 million yuan, 141 million yuan and 187 million yuan respectively. According to the diluted issue of 30 million shares, the EPS will be 0.715 yuan, 1.321 yuan and 1.753 yuan respectively.
According to the current average valuation level of domestic zinc listed companies and considering the characteristics of the companies listed on the small and medium-sized board, we think that it is reasonable to give the company a dynamic price-to-earnings ratio of 10 to 12 times in 2007, that is, the reasonable price is between 13.2 and 15.8 yuan. the reasonable inquiry is about 10.5 yuan.
