\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 899 Zijin Mining Group Company Limited(601899) )
Event: the company released the first quarterly report of 2022. In 2022q1, the revenue reached 64.771 billion yuan, an increase of 36.35% year-on-year and 15.40% month on month; The net profit attributable to the parent company was 6.124 billion yuan, an increase of 143.88% year-on-year and 40.19% month on month; The non net profit deducted was RMB 6.043 billion, with a year-on-year increase of 144.01% and a month on month increase of 44.19%.
The simultaneous rise of volume and price helped the performance of the first quarter “get off to a good start”. Volume: the sales volume of copper, gold and zinc minerals of 2022q1 company was 195000 tons, 14000 tons and 106000 tons respectively, with a year-on-year increase of 63.4%, 27.2% and 10.5% respectively; Price: the selling prices of core minerals copper, gold and zinc in 2022q1 are 55300 yuan / ton, 34899 yuan / g and 17300 yuan / ton respectively. The volume and price of copper, gold and zinc rise together, contributing to the growth of performance in the first quarter of 2022 and realizing the “red start of the year”. Among them, the gross profit margins of copper, gold and zinc businesses were 66.93%, 50.64% and 59.14% respectively.
The copper mine was completed and put into operation ahead of schedule, and the copper output continued to rise. In 2022q1, the copper output was 193600 tons, with a year-on-year increase of 52.70%. In 2022, with the orderly progress of major projects, copper production will continue to rise in 2022. The second phase of kamoa kakula copper mine, with an annual processing capacity of 3.8 million tons of ore, was commissioned with materials, which was completed and put into operation about 4 months ahead of the original plan; The design and preliminary work of the phase III expansion project are advancing rapidly, and it is planned to be put into operation in the fourth quarter of 2024; The supporting 500000 ton copper smelter is under promotion. The technical transformation of saizi copper VK mine is 40000 tons / day, and strive to be put into operation in the second quarter of 2022, with about 35000 tons of mineral copper added after reaching the production capacity; A large number of major projects such as the core project of caving mining in the lower ore belt of sazijin peji copper gold mine and the caving project of sazijin JM copper mine are progressing smoothly.
Deeply connect with the dual carbon target, acquire lithium salt lake and lay out the new energy field. In 2021, the company completed the acquisition of 100% equity of Canadian Xinli company, and delivered in January 2022 to obtain the 3Q lithium salt lake project in Argentina. The resource of the project is 7.63 million tons of LCE, the reserve is 1.67 million tons of LCE, and the average lithium concentration is 786mg / L. It was officially started on March 20. The first phase is designed to produce 20000 tons of lithium carbonate per year. It is expected to be completed and put into operation in 2023. At the same time, a joint venture company katamba mining was established in the Democratic Republic of the Congo, the first hard rock lithium exploration project was launched, a new energy and Materials Research Institute was established, and the research and implementation of new material projects such as lithium iron phosphate, electrolytic copper foil and high-performance alloy materials were accelerated.
Investment advice: influenced by many factors such as overseas economic recovery and inflation expectations, copper and gold prices continue to remain high. The important copper mine projects were completed and put into operation ahead of schedule, and the copper output exceeded expectations. We expect the company’s revenue to be 2776.5/313.29/323.76 billion yuan from 2022 to 2024, with a year-on-year growth rate of 23.3% / 12.8% / 3.4% respectively; The corresponding net profit attributable to the parent company was 27.307/31.8/35.42 billion yuan respectively, with a year-on-year growth rate of 74.2% / 13.8% / 13.9% respectively. The corresponding PE of the current stock price was 11x / 10x / 9x respectively, maintaining the “buy” rating.
Risk warning: the production of important mining projects under construction of the company is not as expected; Copper and gold prices fell sharply; Fluctuation of RMB exchange rate, etc.
