Shengda Mining (000603) First Quarterly Report Review: Endogenous + Epitaxial Stable Growth Trade Business Affects Gross Margin
I. Event Overview Shengda Mining released the 2019 first quarter performance report on the evening of April 25.The company realized revenue 5.65 ppm, an increase of 89 in ten years.93% (adjusted); net profit attributable to mother is 9728.0.94 million yuan, an increase of 9 in ten years.57% (adjusted); net profit attributable to non-mothers is 9,316.950,000 yuan, an increase of 44 in ten years.16% (adjusted); EPS0.14 yuan / share. Second, analyze and judge the endogenous + epitaxial two-wheel drive to ensure growth, the decline in gross profit margin caused by the trading business. The company’s first-quarter performance growth was mainly transformed into 武汉夜网论坛 stable business growth and the impact of Jinshan Mining’s consolidation.2019Q1 comprehensive gross profit margin 32.45%, 29 around ten years.4 units; net interest rate 16.24%, ten-year average.91 units.The large increase in revenue and the increase in gross profit margin were mainly due to the impact of increased non-ferrous metal trading business in the second half of 2018. The scale of the revenue from the trading business was large, but the gross profit margin was reduced (the revenue from the trading business in 201811.33 ppm, gross margin is 0.98%), which lowered the company’s comprehensive gross margin and net profit margin. The original mineral project is advancing steadily, and endogenous continues to steadily improve Chifeng Jindu 30 insertion plant. The tailings reservoir construction project was completed and put into 杭州桑拿网 use in December 2018, which will contribute to the performance in 2019.In 2018, China Everbright Mining, Chifeng was fully completedThe construction of the second phase of the underground project in Jindu No. 1 mining area; the construction of Chifeng Jindu filling system has completed the preliminary preparations for the plant foundation and equipment procurement. Injected into Jinshan Mining, the epitaxial growth guarantees the company’s acquisition of 67% equity of Jinshan Mining in 2018. The Eren Tolgoi mining area to which Jinshan Mining belongs is the largest independent large-scale silver mine in China with the largest single silver reserve and the largest production scale.Metal resource reserves exceed 8,200 tons, ranking first among listed companies.Jinshan Mining promises to gradually realize the replacement of non-recurring net profit of no less than 7805 in 2019, 2020 and 2021.140,000 yuan, 22572.07 million yuan, 46832.490,000 yuan.Jinshan Mining is rebuilding and expanding the ore dressing plant and preparing to build a manganese sulfate production line. After the project is completed and put into operation, the extraction efficiency will be further improved.The steady improvement of Jinshan Mining’s performance will lay the foundation for the company’s performance. Third, investment recommendations The overall style of the Fed’s March minutes is partial, indicating that the Fed is still concerned about the prospects of the US economy, and the precious metals prices are favorable in the medium and long term.The short-term silver price is still under pressure, but is optimistic about the future silver price trend.The stable operation of the company’s high-level mines and the improvement of Jinshan Mining’s performance will guarantee the company’s performance.It is expected that EPS for 2019-2021 will be 0.66/0.72/0.77 yuan, corresponding to the current sustainable PE is 16/15 / 14X.At present, the historical average of the company’s assessment is below the average, and it is covered for the first time. 4. Risk warning: The product price fell more than expected, the project’s production progress fell short of expectations, and downstream demand fell more than expected.