Zijin Mining (601899) 2019 Annual Results Pre-increasing Comment： Net profit for non-return to mothers increased by 19 in 19twenty four%？30.68% of copper-gold mine output steadily released in the next three years
Zijin Mining (601899) 2019 Annual Results Pre-increasing Comment: Net profit for non-return to mothers increased by 19 in 19twenty four%?30.68% of copper-gold mine output steadily released in the next three years
The company foresees a net profit of 36 for non-return to mothers in 2019.5?400,000 yuan, an increase of 19 in ten years.twenty four%?30.68%, mainly benefited from the steady increase in the output of mineral products.In the next three years, high-quality mining projects will gradually reach production. The release of copper and gold mines will help the company’s performance to grow steadily.Taking into account the company’s excellent resource endowment, production growth potential and the increase in profitability brought about by copper price growth, the company maintains a “Buy” rating. In 2019, the net profit after deducting non-attributed mothers increased by 19 per year.twenty four%?30.68%.According to the company announcement, it is estimated that the net profit attributable to mothers will be 41 trillion in 2019?43 trillion, an increase of 0 in ten years.15%?5.03%.It is estimated that the net profit after deducting non-return to mother will be 36 in 2019.5 ‰?40 ‰, a ten-year increase.twenty four%?30.68%.Core of performance changes: product output growth, loan interest expense and affected non-recurring profit and loss in 2018. The output of mineral products have all increased, and the output of copper and zinc has grown significantly.In 2019, the company’s output of major mineral products achieved steady growth.Among them, copper and zinc production increased significantly, such as mineral copper 36.99 for the first time, growing 48 each year.79%; mineral zinc 37.41 for the first time, growing 34 each year.54%.The remaining mineral products have achieved steady growth, such as mineral gold 40.83 tons, an increase of 11 in ten years.87%; mineral silver 263.18 tons, an increase of 19 in ten years.15%; the replacement of iron concentrate 353 (including the rights and interests of Makeng iron ore production), an increase of 18 years.86%. The rapid release of mineral copper and gold in the next three years will help the company’s performance to grow steadily.The company released a three-year mine commissioning plan, clarified high-quality mining resources such as the Timok copper-gold mine in Serbia and the Kamoa-Kakura copper mine in the Congo.Delivery and completion, put into operation, promote the technological transformation and expansion of a number of high-quality projects and reach production standards.According to the company’s plan, it is expected that the output of mineral copper will nearly double in 2019-2022, and the CAGR will be 21 in the next three years.0%?26.0%; the output of mineral gold has achieved steady growth, with a CAGR of 6 in the next three years.3%?9.8%. Risk factors: the risk of fluctuations in raw material prices, and the new production capacity is less than expected. Investment suggestion: Considering the impact of the price of copper, gold and zinc on the company’s main products and the rhythm of capacity release on 杭州桑拿 profitability, adjust the company’s return to mother’s net profit forecast variable for 2019-2021.5/54.4/68.1 ppm (original predictor variable 50.4/56.5/68.7 ‰), the corresponding EPS predictions are 0.18/0.24/0.30 yuan (the original predictor variable is 0.22/0.25/0.30 yuan), taking into account the company’s excellent resource endowment, output growth potential and profitability brought about by the increase in copper prices, maintain the company’s “Buy” rating.