Zijin Mining (601899) 2019 Interim Report Comments： Overseas Quality Projects with Consistent Performance Expected to Continue to Power
Zijin Mining (601899) 2019 Interim Report Comments: Overseas Quality Projects with Consistent Performance Expected to Continue to Power
The company’s performance in the first half of 2019 is in line with expectations, and copper and gold production have maintained steady growth. The promotion of overseas projects in the future is expected to increase the output of mining products. Considering the company’s high-quality resource endowment and future capacity release expectations, it will supplement the profit brought by the substantial increase in gold pricesIncreased, maintain the company’s “Buy” rating. The performance in the first half of 2019 was in line with expectations, and the decline in copper and zinc prices affected the company’s profit.The company’s revenue in the first half of 2019 was 671.98 ppm, an increase of 34 in ten years.90%; 2018 net profit attributable to mother 18.5.3 billion, a year-on-year decrease of 26.64%, net profit of non-attributed mothers 16.57 trillion, a reduction of 30 a year.28%, net cash flow from operating activities 44.0.6 million yuan, a decrease of 11 per year.53%.The decrease in profit and cash flow was mainly copper, and the decline in zinc prices led to a reduction in the gross profit of copper-zinc mines, as well as an increase in expenses and substantial growth. Mine copper output has grown significantly, and overseas projects are expected to become the main growth pole of future profits.In the first half of 2019, the company produced copper 17.1 Initially, it grows 43 per year.33%, mainly due to the increase in the Congo (Gold) Kolwezi copper mine flotation system and wet system commissioning, Duobaoshan Phase II commissioning, and the new merger and acquisition of Zijin Boer Copper.The gross profit margin of copper produced by mining decreased by more than 9.09 single to 43.76%, mainly due to the drop in copper prices in the first half of the year.Overseas mine output 6.59 nominal, accounting for 38 of the group.55%, an annual increase of 156.42%.From a long-term 西安耍耍网 perspective, the construction of the Kamoa copper mine and the Timok upper ore belt in Serbia are progressing in an orderly manner, and the technical reconstruction and expansion of the Bor copper mine are promoting the substantial increase in copper output. The amount of gold produced by mines has increased steadily, and the company’s profits have increased as the price of gold has risen.In the first half of 2019, the company’s mineral gold was 19.1 ton, an increase of 13 per year.18%, gross profit margin increased by three in ten years.85 up to 36.29%.Overseas mine output 11.2 tons, accounting for 58.66%, an annual increase of 37.04%.Among them, the production of the Pogra gold mine decreased by 1 due to the earthquake in the same period last year.06 tons, 3 resumed production this year.9 tons of mineral gold.At the same time, Tajikistan’s Zelafshan company’s output has continued to increase.In 2019, the company plans to produce 40 tons of mine gold, an annual increase of 9 tons.6%, the main contribution is expected to come from Bogras production recovery and associated gold production from boron copper and Bisha projects.Accumulated gold prices have risen sharply this year, and the company’s gold business is expected to contribute significantly to profitability. We will make every effort to promote the issuance of public A shares and to promote the orderly construction of overseas projects.Financial expenses for the first half of the year 8.51 ppm, an increase of 28 in ten years.84%.At present, the company is fully promoting the public offering of A shares to reduce financing costs, optimize asset structure, and enhance the company’s core competitiveness.The company has continued to develop budget projects overseas. The progress of many projects in the first half of the year is forecast. The main goal in the future is to re-release overseas project increases, reduce costs and increase efficiency, optimize financial budgets, and reduce operating pressure. Risk factors: metal price risk, interest rate and exchange rate fluctuation risks, safety and environmental risks. Investment suggestion: Considering the impact of copper, gold, zinc price operation and the rhythm of production capacity release on the company’s profit, the company’s net profit attributable to its mother for 2019-2021 is slightly adjusted to 50.4/56.5/68.700 million (previous forecast was 50.3/56.6/66.4 ‰), the corresponding EPS is 0.22/0.25/0.30 yuan, comprehensively considering the company’s excellent resource endowment and output growth potential, as well as the thickening of profits brought by the substantial increase in gold price, maintaining the company’s “Buy” rating.