\u3000\u3 Shengda Resources Co.Ltd(000603) 993 China Molybdenum Co.Ltd(603993) )
The first quarter performance of 2022q1 hit another record high China Molybdenum Co.Ltd(603993) 2022q1 achieved a revenue of 44.525 billion, an increase of 11.55% and a net profit attributable to the parent company of 1.792 billion, an increase of 77.88% and a new record high. As of 2022q1, the company has held monetary capital of 34.47 billion yuan and sufficient liquidity reserves.
In addition to the mining sector, Exxon ixm, a subsidiary of the company, achieved a metal trade volume (physical volume) of 1.4854 million tons in the first quarter through the business model of combination of time and cash, highlighting the advantages of the combination of mining and trade.
10K project volume, copper and cobalt business release performance. 2022q1tfm will produce 62400 tons of copper (+ 26%) and 5108 tons of cobalt (+ 55%), benefiting from the reaching of tfm10k project, and the output of copper and cobalt will gradually reach the production. TFM mixed ore project is planned to be completed and put into operation in 2023. In the future, we expect to increase the annual output of copper by about 200000 tons and the annual output of cobalt by about 17000 tons.
Phased progress has been made in management change. The company's Australian NPM has completed the management adjustment, and the global overseas mining sector has realized the management mode of "Chinese led, Chinese and foreign integration and joint management". The effect of cost reduction and efficiency increase was prominent in Brazil, with niobium output of 2423 tons (+ 29%), and the net profit of niobium and phosphorus reached a new high in a single quarter in recent years.
22q1tfm copper did not realize gross profit increase. The impact of logistics congestion in Durban port, South Africa, which began last year, continues. The TFM copper output of 2022q1 company is 62400 tons, the sales volume is only 53100 tons, and the copper inventory increment is 11100 tons. This part of the profit is expected to be realized in 22q2. The company has ixm, the world's leading trading company. We expect the sales situation to continue to improve. 2022q1 company sold 5900 tons of cobalt products, with a year-on-year increase of 56%. With the continuous rise of global cobalt price, we are optimistic about the overall profit release of TFM project.
Participate in the nickel industry and broaden the new energy track. After the trial batch of Indonesia Huayue project was put into operation, the performance in the first quarter was eye-catching and became a new profit growth point of the company.
China Molybdenum Co.Ltd(603993) esg "up a", leading global mining companies. The latest rating of msciesg was raised from "BBB" to "a", which belongs to the first echelon of the global industry. It is at the same level as Rio Tinto, BHP Billiton and Anglo American resources. It is the highest rating among mining enterprises of the same scale in the nonferrous metals industry. And for the company, ESG has significant value creation function, successfully issuing 150 million yuan of green medium note and the first high growth bond of Chinese mining enterprises.
Profit forecast and valuation China Molybdenum Co.Ltd(603993) is the world's leading copper and cobalt enterprise. Due to the continuous rise in the average price of copper and cobalt, the main varieties of 2022q1 company, and the company's profit in the first quarter exceeded expectations, we raised the company's EPS from 2022 to 2024 to 0.35 (+ 9%), 0.44 (+ 13%) and 0.65 (+ 8%) yuan / share respectively. We expect that the company's TFM mixed ore project and KFM copper cobalt mine will be put into operation in the next two years, and the company's net profit will usher in a period of rapid growth. Referring to the valuation level of comparable companies, the PE valuation will remain unchanged. We will give a PE valuation of 26 times in 2022, corresponding to a reasonable value of 9.10 yuan / share, and maintain the rating of "better than the market".
Risk warning. The construction progress of the project is less than expected.
