\u3000\u3 Shengda Resources Co.Ltd(000603) 505 China Kings Resources Group Co.Ltd(603505) )
Non net profit deducted in 2021 increased by 8.94% year-on-year, the performance met expectations and maintained the "buy" rating
The company issued a performance express, which is expected to achieve a revenue of 1.043 billion yuan in 2021, with a year-on-year increase of 18.64%; The net profit attributable to the parent company was 245 million yuan, a year-on-year increase of 2.91%; The net profit deducted from non parent company was 244 million yuan, with a year-on-year increase of 8.94%. Among them, Q4 is expected to achieve a revenue of 399 million yuan, a year-on-year increase of 24.68%; The net profit attributable to the parent company was 75 million yuan, a year-on-year increase of 6.89%. The production and sales of various fluorite products of the company have increased. However, due to the fact that the new project has not yet produced benefits, the large cost investment in the period related to the project, and the price rise of raw materials, the production cost has increased, and the growth rate of net profit is less than that of revenue. The company's overall performance is in line with expectations. We maintain the company's profit forecast unchanged. It is estimated that the company's net profit attributable to the parent company from 2022 to 2023 will be 427 million yuan and 637 million yuan respectively, EPS will be 1.37 and 2.05 yuan / share respectively, and the corresponding PE of the current stock price will be 26.0 and 17.4 times respectively. The company's development strategy is based on the long-term, Baotou Iron and steel Jinshi project is smoothly promoted, and will continue to extend to the downstream and open up new business growth points. We are optimistic about the long-term growth of the company under the grand vision and maintain the "buy" rating.
Baotou Iron and Steel's Jinshi beneficiation project was successfully promoted and entered the formal production state
According to the website of the people's Government of Inner Mongolia Autonomous Region, the company's comprehensive utilization and beneficiation technology transformation project of fluorite resources in Bayan Obo mine was started on April 15, 2021. After the completion of the project, it can achieve an annual output of 800000 tons of fluorite concentrate and promote the annual output of 300000 tons of hydrofluoric acid in the downstream industry. By the end of November 2021, the technical transformation of the mountain fluorite production line has been completed and the whole line has entered the formal production state. By the end of 2021, the annual production capacity of fluorite concentrate will be increased from 100000 tons to 150000 tons. It is expected that the production capacity of fluorite powder will be 608300 tons by November 2022. The project is progressing smoothly and beyond expectations. In the 2022 work report of the people's Government of Bayan Obo mining area, Baotou Iron and Steel Co., Ltd. mentioned the comprehensive utilization project of gold, stone and fluorite resources four times, which has been given sufficient weight in the strategic layout of the local government and will make great achievements in the future.
It is proposed to repurchase no more than 100 million yuan for the implementation of employee stock ownership plan or equity incentive
According to the company's announcement on January 20, it plans to use its own funds to repurchase the company's shares at a price of no more than RMB 100 million, and the repurchase price is no more than 57 yuan / share. The shares repurchased this time will be used to implement the employee stock ownership plan or equity incentive. As of February 7, 2022, the company has repurchased 645164 million yuan in total. The company's move will effectively bind the interests of shareholders, the company and the core team, and help enhance the confidence of long-term investors in the company's future development prospects.
Risk tip: the progress of the project is less than expected, the product price has fallen sharply, and the downstream demand is less than expected.
