\u3000\u30 China Baoan Group Co.Ltd(000009) 75 Yintai Gold Co.Ltd(000975) )
The company released its 2021 annual report: in 2021, the company achieved a revenue of 9.04 billion yuan, a year-on-year increase of 14.3%; The net profit attributable to the parent company was 1.273 billion yuan, a year-on-year increase of 2.5%; Net profit deducted from non parent company was 1.202 billion yuan, with a year-on-year increase of 3.3%. In 2021q4, the company achieved a revenue of 3.189 billion yuan, an increase of 118.2% year-on-year and 34.9% month on month; The net profit attributable to the parent company was 235 million yuan, a year-on-year decrease of 17.9% and a month on month decrease of 36.7%; Net profit deducted from non parent company was 218 million yuan, a year-on-year decrease of 14.8% and a month on month decrease of 37.8%.
The performance rose steadily in 2021, benefiting from the simultaneous rise of volume and price. Revenue and gross profit margin: in 2021, the revenue of the company’s main business mining and beneficiation business was 3.787 billion yuan, a year-on-year increase of 15.08%, and the gross profit margin was 59.15%, a decrease of 5.29% compared with the same period last year. Price side: the average selling price of the company’s main products has increased year-on-year. In 2021, the selling price of mineral gold / mineral silver / lead powder / zinc powder increased by 0.31% / 7.3% / 7.43% and 31.24% year-on-year. Sales volume: the output and sales volume of main mineral products have increased, and the sales volume of mineral gold / mineral silver / lead concentrate / zinc concentrate increased by 8.87% / 19.57% / 17.18% / 14.85% year-on-year. The inventory of mineral silver and lead concentrate decreased by 77.72% and 94.05% year-on-year respectively. The company actively digested the inventory.
The production of mines in production increased steadily, and the products maintained a high gross profit margin. 1) In 2021, the operating revenue of gold products was 2.671 billion yuan, with a year-on-year increase of 9.31%, accounting for 29.56% of revenue, 71.04% of gross profit and 60.33% of gross profit margin. The revenue of mineral silver reached 771 million yuan, a year-on-year increase of 28.21%, the proportion of revenue increased from 7.61% to 8.53%, and the gross profit margin was 56.7%. Under the high gold price, the profitability of mineral gold is good, and the production and sales of silver have increased significantly, driving the growth of performance. 2) The four subsidiaries in production vigorously promote production and sales. Yulong mining produces 162.56 tons of silver, 10500 tons of lead powder and 13200 tons of zinc powder; The gold output of Heihe Yintai / Jilin Banmiaozi / Qinghai Dachaidan reached 2.85/2.22/2.14 tons respectively. The net profit of the four mineral subsidiaries increased year-on-year in 2021, of which the net profit of Yulong increased by nearly 39.3% year-on-year.
The prospect of increasing reserves and production is good, and Mangshi gold mine brings new growth points. 1) By the end of 2021, the company has a total of 1019417 million tons of ore resources, 170.45 tons of gold metal, 715406 tons of silver metal, and a variety of metal resources such as lead, zinc, copper and tin. In 2021, exploration activities were carried out in four mines in production, with an annual exploration investment of nearly 102 million yuan, mainly concentrated in Qinghai area with great prospecting potential. 2) Production expansion plans have been successively implemented for all mines in production. The beneficiation capacity of Dong’an mine can reach 375000 tons / year, and that of Jilin is expanded to 800000 tons / year. The mining right of JINLONGGOU in Qinghai is successfully supplied. Yulong can realize annual production after completing technical transformation, and the production capacity will be further released. 3) Mangshi gold mine, acquired in 21 years, has obtained the mining license and is applying to change the license to 1.2 million tons / year. After the resumption of production, it is expected to increase 3-5 tons of mineral gold, bringing growth to the company.
Profit forecast and investment suggestions: the company has abundant resource reserves, stable production expansion projects, increased production capacity, and Huasheng gold mine gradually resumed production. We expect the company’s gold output to be 10.03/13.41/17.71 tons in 2022 / 2023 / 2024, and the net profit to be 1.975/25.81/3.430 billion yuan respectively. Calculated according to the closing price on April 11, the corresponding PE is 15 / 11 / 9x respectively, maintaining the “recommended” rating.
Risk tips: the project progress is less than expected, the metal price falls, geopolitical risks, etc.
