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Zhongjin Lingnan (000060) Interim Review: Lead and zinc prices dragged down first half performance

Zhongjin Lingnan (000060) Interim Review: Lead and zinc prices dragged down first half performance

In the 19th half-year report, net profit in the first half of the year decreased by 22.

43% On August 29, the company released its 19 half-year report, reporting that the two companies realized operating income of 92.

90 trillion, a decrease of 18 a year.

56%; net profit attributable to mothers4.

71 ppm, a decrease of 22 per year.

43%; net profit after deduction is 3.

65 trillion, down 37 a year.

66%; EPS0.

13 yuan, expected ROE4.

48%.

The company achieved revenue of 51 in the second quarter of 2019.

79 trillion, down 21 a year.

60%; net profit attributable to mother 2.

10 ‰, 29 years ago.

14%; net profit after deduction is 1.

65 ppm, a ten-year average of 43.

12%.

The company’s performance is worse than our democratic expectations, and the company’s EPS is expected to be 0 in 19-21.

26, 0.

27, 0.

30 yuan, maintaining the company’s “overweight” rating.

  The increase in investment income and the decline in gross profit margin deviated from the wind. The price of H1 lead and zinc fell by about 13% and 8% respectively in 19 years. Due to the decline in the price of lead and zinc, the company’s H1 profit level in 19 years fell.

H1’s gross profit margin was 9.

75%, down 2 each year.

33pct, the gross profit level of the concentrate business rose sharply21.

98 points to 24.

32%.

The company’s management expenses in the first half of the year increased by 19 each year.

87%, mainly due to the annual increase in throughput of employee compensation, business entertainment expenses, and travel expenses.

Finance costs fall by 55 per year.

48%, the main factor company Peliya company’s exchange income increased by 253 every year.

70%.

It is said that the 19-year interim report reported a long-term non-recurring gain of 1.
.

US $ 0.6 billion, mainly due to the increase in investment income obtained by the company’s long-term equity investment and derivative financial instruments.

  The temporary situation of overseas assets and the decline in concentrate output in the first half of the year According to the 19-year report, the Australian company Peliya acquired by the company had a net profit of RMB-160 in the first six months of 1919.

950,000 yuan.

In 19H1, the company’s concentrate output declined, and the output was reported. The company’s mining enterprises produced concentrate zinc and lead metal14.
Initially, it declined by 6 every year.
56%.

Among them, domestic mining enterprises produce 8 lead-zinc concentrate metals.

69 nominally, down 1 from the same period last year.

42%; the amount of lead-zinc concentrate produced by foreign mining companies5.

55 initially, down 13 from the same period last year.

64%.

According to the 19-year Interim Report, the company was affected by the escalation of Sino-US trade frictions and the fall in lead and zinc prices.

We believe that for the purpose of reducing costs and controlling risks, the company has reduced the mine’s capacity utilization to a certain extent, resulting in a decline in production.

  Expanded mineral resource advantages and breakthroughs in technological innovation According to the 19th Interim Report, the company’s mineral resources owned Fankou Lead-Zinc Mine, Guangxi Panlong Lead-Zinc Mine, and Australia’s Peliya Company, and held Myanmar Metals Corporation19.

9% equity, 40% equity of Polinarak Resources, Ireland, with 6 mines in production and nearly 200 exploration warrants.

In 19, H1’s “Research and Application of Key Technologies for Green High-Efficiency Plan Mining of Low-grade Ore in Karst Areas” and “Low Energy Consumption Activation Initiating Equipment for Filling Slurry” won the second prize of Green Mine Science and Technology.

  Lead-zinc production is at the leading level in the industry, maintaining the company’s “overweight” rating. As the price of lead and zinc continues 北京夜网 to fall, the company’s profit forecast is lowered. It is estimated that the company’s revenue in 19-21 will be 198.

65, 204.

39, 210.

3.8 billion, net profit attributable to shareholders of the parent company was 9.

32, 9.

67, 10.

7.2 billion, 19-21 year net profit reductions were 5%, 4%, 3%, corresponding to PE were 16, 15, 14 times.

With reference to the evaluation level in the same industry (19 years average PE 19 times), the company gives 19 years PE estimates 17-19 times, corresponding to adjusting the subdivision interval to 4.

42-4.

94 yuan (previous average 5).

32-5.

88 yuan), maintain the company’s “overweight” rating.

  Risk Warning: Lead, Zinc Metal Prices Fall; Metal Minerals Output Does Not Meet Expectations