Core viewpoints
The company has six mining subsidiaries with an annual output of more than 200 tons of silver. at the same time, the company has nearly 10,000 tons of silver resources, high grade, low cost, outstanding scale advantages and cost advantages, and is the leader of domestic silver resources. The company is active in production expansion and mergers and acquisitions, silver production is expected to increase steadily in the future.
The Fed's interest rate hike has come to an end, and real interest rates constitute an upward driving force for silver prices; at the same time, there is strong demand in silver industry, high consumption in the photovoltaic silver paste sector, and a shortage of silver supply is expected in 2023; a double click on financial and industrial attributes is imminent. Silver prices are expected to open up room for upward elasticity. As a silver leader, the company will fully benefit from the rise in the volume and price of silver and accelerate its performance.
Abstract
Baiyin bibcock has outstanding advantages in resource endowment. At present, the company has 6 mining subsidiaries, of which 4 are in production and 2 are waiting for production, with an annual mining capacity of nearly 200t / a, an annual output of silver of more than 200t, and silver resource reserves of nearly 10,000 tons of metal; the raw ore grade of Yindu, Jindu, Jinshan and Dongsheng is higher than 200g/t, and the cost advantage is outstanding, and the company's overall gross profit margin is more than 50%.
Focus on precious metals, expand production, expand M & A, and deeply plant the growth gene of M & A. In the history of the company, we continue to acquire high-quality mineral resources and gradually establish the advantages of white banking. The company acquired shares in Everbright Mining and Chifeng Jindu in 2015, 70% in Dongsheng Mining in 2017, 67% in Jinshan Mining in 2018, and 54% in Deyun Mining in 2019. The company has always attached importance to the acquisition and development of high-quality resources, and is actively promoting the development of Dongsheng Mining and Deyun Mining and the expansion of Jinshan Mining. The company's growth gene has been verified many times, and there is room for growth in the future.
Take urban mines as an opportunity to actively distribute new energy sources. On the strategic tone of "primary mineral resources + urban mine resources", the company has established the principle of "enlarge and strengthen precious metals and accelerate the layout of new energy", and cut into the urban mining business through the holding subsidiary gold industry environmental protection. focus on the development of high nickel matte in the gold industry and pay attention to new energy mineral resources.
Silver financial attributes and industrial attributes double-click is imminent, the price upward flexibility is large. The Fed's interest rate hike is coming to an end, and the nominal interest rate has reached its highest level in nearly 15 years. Once the late interest rate cut is started, the nominal interest rate will drive down the real interest rate to form the driving force of silver financial attribute. In terms of industrial attributes, the demand for silver industry is strong, the increase in supply is limited, the supply of silver is in a state of shortage, the manufacturing industry of the global economy has bottomed out, and the commodity attribute gives silver the second upward force.
Profit forecast: from 2023 to 2025, we estimate that the company's revenue will be 1.92 billion yuan 2.43 billion yuan, with a growth rate of 2.04%, 9.57%, 15.70%, 4.6, 5.4, and 690 million, respectively, with a growth rate of 25.3%, 18.7%, 27.7%, and 21-18-14, respectively, with a buy rating.
Risk hint: production release is not as expected and silver prices are not as high as expected.