Zijin Mining (601899): Overseas projects continue to make efforts to publicly issue additional shares approved to optimize financial structure

Zijin Mining (601899): Overseas projects continue to make efforts to publicly issue additional shares approved to optimize financial structure
Performance summary: The company achieved operating income of 671 in the first half of 2019.9.8 billion, an annual increase of 34.90%; net profit attributable to mother 18.5.3 billion, a year-on-year decrease of 26.64%; realized non-net profit deduction of 16.57 trillion, a reduction of 30 a year.28%.  Core assets: the company’s output of mineral gold in the first half of the year19.10 tons, an increase of 13 in ten years.18%; output of mineral copper 17.11 for the first time, with an annual increase of 43.The increase of 33% was mainly due to the completion of the flotation system of the Kolwezi copper mine and the commissioning of the wet process system, the second phase of Duobaoshan’s commissioning and the increase in the newly acquired Zijinboer copper industry; the zinc output of the mine was 29.54 for the first time, growing 21 per year.24%, the increase is mainly from the newly acquired Bisha project.The company’s overseas projects continued to develop strength, and the scale of mineral products achieved substantial growth.Among them, after the company took over the Boer copper (gold) mine in Serbia, it made a smooth transition and turned losses into profits; the Kolwezi wet process system was put into full production and entered the ranks of 10-year / grade large-scale copper mines.  Performance interpretation: The company’s output of major mineral products has increased over time, but poor metal prices have dragged down overall performance.The unit weight of mineral copper is 3.56 million / ton, temporarily extended by 3.67%; Mineral zinc unit content 1.160,000 yuan / ton, 27 from the previous decade.twenty two%.From the perspective of profit contribution, mineral copper is still the company’s largest contributor to net profit, contributing a gross profit of 25%.96 ppm, an increase of 12 in ten years.78%; and the contribution of mineral gold has increased, contributing a gross profit of 18.30 ppm, an increase of 37 in ten years.81%; the contribution of mineral zinc decreased significantly, contributing 10% of gross profit.82 trillion, a decrease of 35 a year.47% (without considering internal intervention).  Financial analysis: From the end to the first half of the year, the company’s asset-liability ratio was 59.67%, ranking increased by 1 in the same period last year.13 budgets; financial costs 8.51 ppm, an increase of 28 per year.84%.The sales and management expenses of the remaining companies increased at least every year, mainly due to the merger of new mergers and acquisitions.97%, higher than 4 in the annual report last year.82%, there is room for further improvement.The company actively promotes the public issuance of A shares. At present, it has been approved by the issuance review committee of the China Securities Regulatory Commission. The company’s financial structure will be optimized.  Pre-judgment of prices: The global interest rate cut cycle will start, and the risk aversion will further push up the price of gold; weak terminal demand will drag down 杭州桑拿 the copper price, but the structure caused by insufficient supply of global copper mines in the medium and long term will bring copper prices back to the upward channel; global zincConcentrate supply is loose, terminal demand is weak and zinc prices are under further pressure.  Earnings forecasts and investment advice.It is expected that EPS for 2019-2021 will be 0.18 yuan, 0.22 yuan, 0.28 yuan, corresponding PE is 20 times, 17 times and 13 times.Taking into account that the company is the highest quality mining enterprise in China, with abundant mineral resources reserves, the internationalization progress is continuously accelerating, and the rating of “Buy” is maintained.  Risk reminder: Project construction and production progress may be less than expected, domestic demand may not meet expectations and metal prices may be affected, 北京夜网 non-public issuance progress may be less than expected, and exchange rate risks.