\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 338 Tibet Summit Resources Co.Ltd(600338) )
Company events
The company issued 2021 annual report and 2022q1 quarterly report. In 2021, the company achieved an operating revenue of 2.049 billion yuan, a year-on-year increase of 80.88%, and a net profit attributable to the parent company of 720 million yuan, a year-on-year increase of 225561%. In 2022q1, the company achieved an operating revenue of 521 million yuan, a year-on-year increase of 10.62%, and a net profit attributable to the parent company of 81 million yuan, a year-on-year decrease of 60.06%, mainly due to the depreciation of somoni, the increase of tax payment of Tazhong mining and other non recurring factors.
The volume and price of core products rose simultaneously, which helped the company’s performance grow significantly
1) in terms of output, Tazhong mining, a wholly-owned subsidiary of the company, basically resumed its production. In 2021, the company completed mining volume of 2.6521 million tons, year-on-year + 65%, ore output of 2.6644 million tons, year-on-year + 67%, and beneficiation processing volume of 2.8493 million tons, year-on-year + 59%; During the reporting period, the core products of lead concentrate, zinc concentrate and copper concentrate were 79500 tons, 139700 tons and 7100 tons, and the amount of lead, zinc, copper and silver was 48100 tons, 70600 tons, 18000 tons and 98.8 tons, with a year-on-year increase of + 44.40%, + 45.76%, + 88.69% and + 56.92%. 2) In terms of price, the price of the company’s main mineral products generally showed an upward trend, and the average price of products increased year-on-year compared with the average price in 2020. The price of zinc, lead, copper and silver increased by 27%, 20.1%, 24% and 22.3% respectively, all in the higher price range in the industry cycle. 3) In terms of gross profit margin, the gross profit margin of lead concentrate, zinc concentrate and copper concentrate products increased to 72.05%, 63.95% and 86.50% respectively in 2021.
Based on the advantages of resources, release the scale of production capacity, consolidate the lead-zinc business and achieve steady development
Tazhong mining, a wholly-owned subsidiary of the company, currently has 4 mining certificates and 3 exploration certificates. The mining right mine has 84.6 million tons of lead-zinc, copper and silver resource reserves; The exploration right mine has a reserve of 9.37 million tons of lead-zinc, copper and silver resources, with an annual mining and processing capacity of 4 million tons. Tazhong mining is implementing the new construction and expansion plan based on the existing mining and beneficiation capacity, which is expected to be completed in 2025. After completion, the annual ore processing capacity will reach 6 million tons, the annual output of lead-zinc, copper and silver metal will exceed 300000 tons, and the net profit will reach 2 billion yuan, which will help the company’s performance continue to grow.
It is expected to accelerate the development of salt lakes in Argentina by joining hands with various technologies
During the reporting period, the company conducted in-depth cooperation with a number of enterprises on Salt Lake development projects, and signed relevant contracts with a number of Chinese Salt Lake Lithium Extraction Technology and equipment suppliers to actively promote the development process of salt lakes in Argentina. ① Anheles project: the company is promoting the construction of lithium extraction project in Salt Lake with an annual output of 50000 tons. The project is expected to be completed and put into trial production before the end of 2022, and the design capacity will be realized in the first half of 2023. With the project put into operation, the profitability of the company is expected to be greatly enhanced. ② Arizaro lithium project: the company has a mining right area of about 338 square kilometers. At present, the salt lake has entered the exploration and development link, and it is planned to build an annual capacity of 5 Shenzhen Ecobeauty Co.Ltd(000010) 0000 tons of lithium carbonate products. The company plans to reach 1 Ping An Bank Co.Ltd(000001) 50000 tons of lithium carbonate equivalent by 2025.
Investment advice
We expect the company to achieve an operating revenue of RMB 2.87/36.8/6.41 billion and a net profit attributable to the parent company of RMB 9.1/11.3/2.05 billion from 2022 to 2024. The corresponding PE of the current stock price is 22 / 18 / 10 times respectively, maintaining the “buy” rating.
