Zijin Mining (601899) 2019 Interim Report Review: Drop in Copper and Zinc Prices Slows Performance
Event: In the first half of 2019, the company gradually realized revenue of 671.9.8 billion, previously increased by 34.90%, realized net profit attributable to mother 18.5.3 billion, previous interest rate 26.64%, net profit after deducting non-return to mother 16.570,000 yuan, an average of 30 for ten years.28%.In the second quarter alone, the company achieved revenue of 381.56 ppm, an increase of 41 per year.58%, realizing net profit attributable to mother 9.79 trillion, an average of 32 in ten years.07%, net profit after deducting non-return to mother 9.12 ‰, 31 years ago.18%. Opinion: The company’s net profit range in the first half of 2019 was mainly affected by changes in metal prices, production costs, management costs, and financial costs.From the perspective of sub-sectors: (1) Copper sector: affected by the drop in copper prices (average price of 35,558 yuan / ton in the first half of the year, and 36,914 yuan / ton in the same period last year) and the impact of Zijinboer Copper Co., Ltd., which has a higher production costAlthough the output of mineral copper has increased (17.1 Initially, it grows 43 per year.33%), but the gross profit margin was 52.85% formaldehyde to 43.76%; gross profit of the sector was 25.95 ppm, an increase of 12 in ten years.7%.(2) Zinc sector: Affected by changes in zinc prices (average price in the first half of the year was 11,582 yuan / ton, compared with 15,914 yuan / ton in the same period last year) and the Bisha project with higher production costs consolidated, the output of mineral zinc has increased (18.7 Initially, growth is 25 per year.92%), but gross profit margin was 68.6% percent to 48.75%; the segment achieved a gross profit of 10.800 million US dollars, an average of 35 in ten years.5%.(3) Gold sector: Affected by the increase in gold prices (average price in the first half of the year was 274 yuan / gram, 杭州桑拿网 compared with 254 yuan / gram in the same period last year) and the increase in the output of major mines (the output of mineral gold in the first half of the year was 19.1 ton, compared with 16 in the same period last year.8 tons), the gold sector achieved good returns.In the first half of the year, the segment achieved a gross profit of 18.3 trillion, compared with 13 in the same period last year.30,000 yuan, an increase of 37.5%. In the first half of the year, the company’s management expenses increased by about 500 million yuan, an annual increase of 36.9%, first of all due to the scope of mergers and acquisitions of new mergers and acquisitions.Finance costs increased by approximately 1.90,000 yuan, an increase of 28 in ten years.84%, initially due to interest rate growth (the long-term increase increased from US $ 6.8 杭州夜网 billion in the same period last year to the current US $ 13.1 billion, and short-term loans increased from 12.5 billion in the same period last year to the current US $ 15.2 billion). Revised earnings forecasts, investment ratings, and estimates: Based on the price of copper and zinc in a downward range, we lower our company’s earnings forecasts.In 2021, the EPS will be 0.18, 0.23.0.27 yuan, from “buy” rating to “overweight” rating. Risk Warning: The price of gold has risen less than expected.