\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 489 Zhongjin Gold Corp.Ltd(600489) )
The company released its 2021 annual report and quarterly report for the first quarter of 2022: in 2021, the company achieved a revenue of 56.102 billion yuan, a year-on-year increase of 16.89%; The net profit attributable to the parent company was 1.698 billion yuan, a year-on-year increase of 9.21%; Net profit deducted from non parent company was 1.689 billion yuan, with a year-on-year increase of 22.44%, of which Q4 company realized a revenue of 15.07 billion yuan, with a month on month increase of 2.39%; The net profit attributable to the parent company was 311 million yuan, a month on month decrease of 35.87%. In 2022, Q1 company realized a revenue of 13.629 billion yuan, a month on month decrease of 9.56%; The net profit attributable to the parent company was 494 million yuan, an increase of 58.87% month on month; The net profit after deducting non return to parent was 425 million yuan, an increase of 82.76% month on month.
Adhere to the main industries of gold and copper, and coordinate the development of multi metals. From the perspective of business structure, the gold revenue in 2021 was 34.978 billion yuan, a year-on-year decrease of 7.29%, the gross profit accounted for 37.55% and the gross profit margin was 6.80%; The revenue of electrolytic copper was 24.421 billion yuan, a year-on-year increase of 54.60%, with gross profit accounting for 14.44% and gross profit margin of 3.75%; The mining Copper revenue was 3.599 billion yuan, with a year-on-year increase of 13.43%, the gross profit accounted for 31.78% and the gross profit margin was 55.95%. Among them, the gross profit margin of gold, mineral copper and electrolytic copper changed by – 4.43%, + 10.01% and + 2.26% respectively. Price side: in 2021, the sales unit price of the company’s main products gold, mine copper and electrolytic copper changed by – 18.87% / + 38.16% / + 30.18% respectively year-on-year. Sales volume and inventory side: in 2021, the sales volume of the company’s mining gold, smelting gold, mining Copper and electrolytic copper were – 10.13% / + 6.59% / – 17.9% / + 18.76% year-on-year respectively.
The assets significantly increased the company’s performance and fulfilled the performance commitment. 1) Inner Mongolia mining: the company owns 90% of the equity of Inner Mongolia mining. By the end of 2021, Inner Mongolia mining has copper / molybdenum resources of 2010500 tons / 486900 tons, processing capacity of 24.75 million tons / year, net profit of 1.17 billion yuan (+ 63.48%) in 2021, accounting for 62.04% (+ 20.59%) of the company’s net profit attributable to the parent company according to equity calculation. The performance has increased significantly and greatly exceeded the performance commitment. 2) Zhongyuan smelter: the company owns 60.98% of the equity of Zhongyuan smelter. At present, it processes 1.5 million tons of mixed concentrate annually, and realizes a net profit of 549 million yuan (+ 23.67%) in 2021, accounting for 19.71% (+ 2.31%) of the net profit attributable to the parent company according to equity calculation.
The project is progressing smoothly and the resource base is constantly consolidated. In 2021, the company made a breakthrough in prospecting, adding 38.8 tons of gold and 2128 tons of copper. By the end of 2021, the company had 510.5 tons of gold resources, 2.37 million tons of copper resources and 639 square kilometers of mining rights. In addition, the company has made progress in four key projects, including Jiangxi Jinshan reconstruction and expansion project and Liaoning Xindu overall relocation and reconstruction project, which have been put into operation, realizing project revenue of 70 million yuan / 20 million yuan; After the completion of Anhui Taiping expansion project and Inner Mongolia mining deep resource mining project, the project revenue will be 180 million yuan / 1.288 billion yuan. According to the commitment of China National Gold Group Gold Jewellery Co.Ltd(600916) group in 2014, high-quality gold resources within the group will be gradually injected into the company to provide strong resource guarantee for the sustainable development of the company.
Profit forecast and investment suggestions: Geopolitics, high inflation and other factors continue to boost the price of gold. We expect the net profit attributable to the parent company in 2022 / 2023 / 2024 to be RMB 2.083/22.602448 billion, and the PE corresponding to the closing price on April 22 to be 18x / 16x / 15x respectively, maintaining the “recommended” rating.
The project price is lower than expected, and the risk of asset injection is less than expected.
