Industry and Company
Zijin Mining(601899) Financial Report Comments-The production and sales of core minerals in the business cycle have increased rapidly, and the new energy and new material industries have been actively deployed
The company released the 2021 annual report: realized revenue of 225.102 billion yuan, +31.25% year-on-year; realized the return to the parentnet profit15.673 billion yuan, a year-on-year increase of 140.80%; a net profit of 14.681 billion yuan, a year-on-year increase of 132.21%. In 21Q4, the revenue in a single quarter was 56.127 billion yuan, a year-on-year +36.67%, and a month-on-month -5.05%; the net profit attributable to the parent was 4.370 billion yuan, a year-on-year +125.72%, and the month-on-month -6.08%; the non-returning to the parent net profit was 4.191 billion yuan, Year-on-year +153.08%, month-on-month -4.25%.The company’s historyperformanceThe best year ever.
The high point of the commodity boom cycle, the production and sales of core minerals are expected to continue to grow rapidly
The company’s main mineral product output in 2021: mined gold 47.45 tons, +17.28% year-on-year; mineral copper 584,200 tons (including Kamoa Copper’s equity output of 41,900 tons), +28.92% year-on-year; mineral zinc (lead) 434,400 tons , +14.81% year-on-year; 309 tons of mined silver, +3.34% year-on-year; 4.25 million tons of iron concentrate, +9.71% year-on-year. The company also gave production guidance for 2022 in its annual report: it is estimated that mined copper is 860,000 tons, a year-on-year increase of 47.21%; mine-produced gold is 60 tons, a year-on-year increase of 26.45%; Mineral silver is 310 tons; iron concentrate is 3.2 million tons; it is estimated that the project construction (including technological transformation) investment expenditure plan is 20 billion yuan.
The company’s strategy is extended, and the new energy and new material industry spawned by the “dual carbon” policy is actively deployed
We believe that 2021 is a key year for the company to achieve strategic expansion. In addition to the rapid increase in the output of the original advantageous minerals gold, copper and zinc mines, the Kamoa-Kakula Copper Mine in Congo (DRC) and the Pegi Copper Mine in Serbia will increase rapidly. In addition to the three world-class copper mines, the Gold Mine and the Julong Copper Mine in Tibet, which have been put into production, the company has also completed the construction of the world-class high-grade 3Q lithium salt lake project in Argentina.M&Aofficially entered the newenergy metalrace track. The company emphasized in the annual report that it will vigorously promote the rapid transformation of resource advantages into economic and social benefits, fully promote and accelerate the construction of the 3Q lithium salt lake blockbuster project in Argentina, and promote the contribution of electrolytic copper foil, lithium iron phosphate, hydrogen energy and other investment projects. , forming a synergistic effect. 2022 is expected to be a key year for the company to achieve breakthroughs in new energy materials for lithium batteries, opening up new growth space. The first phase of the 3Q lithium salt lake project has an annual output of 20,000 tonsBatteryGrade lithium carbonate is expected to be completed and put into production by the end of 2023.
risk warning:The construction progress of the project did not meet expectations, and the sales price of mineral products did not meet expectations.
Investment Recommendation: Upwardprofit predictionmaintain a “buy” rating
The profit forecast is raised. It is estimated that the company’s revenue in 2022-2024 will be 2551/2619/265.8 billion yuan, a year-on-year growth rate of 13.3%/2.7%/1.5%, and the net profit attributable to the parent is 227.2/250.8/26.87 billion yuan, a year-on-year growth rate of 44.9 %/10.4%/7.2%; the diluted EPS is 0.86/0.95/1.02 yuan, and the current share price corresponds to a PE of 12/11/10X. Considering that the company is the core target of a domestic non-ferrous listed company, it has abundant mineral resources and the process of internationalization is accelerating. , strategic extension and active deployment of new energy and new material industries, with a clear medium and long-term growth path, and is expected to become a world-class international mining company in the future, maintaining a “buy” rating.
securitiesanalyst: Liu Mengluan S0980520040001;
Yang Yaohong S0980520040005
(Article source: Guoxin Research)