Xiamen Tungsten (600549) Annual Report Comments: 18 Years of Molybdenum Profits Continue to Grow
In 18 years, the net profit attributable to mothers decreased by 19%, and the main business of 杭州夜网 tungsten and molybdenum continued to grow. According to the company’s annual report, the company’s revenue in 18 years reached 19.6 billion US dollars, an increase of 38%, a profit increase of 1 billion yuan, and a 17% decrease.The net profit of the parent company was 5 trillion, down 19%.
The 18-year decline in profit was mainly due to the decline in the net profit of Tengwangge Real Estate1.
300 million, Changting Jinlong Rare Earth dropped 0.
90,000 yuan, Xiamen Tungsten New Energy fell 0.
900 million, and the company’s tungsten mining business (Yulu, Xingluokeng, Duchang Jinding) net profit increased by 1.
10,000 yuan, the net profit of tungsten and molybdenum processing business increased by 0.
Benefiting from the high price of tungsten and molybdenum and the production of tool projects, the profit growth of the tungsten and molybdenum segment continued to grow. The expansion project of Xiamen Jinlu with an annual output of 4 mm blades and an annual output of 7 million tools has completed workshop workpiece engineering at the end of 18 years.The civil construction was completed; the main project of the Tianjin Baistu knife body expansion project started in February 19th, and the company’s tungsten new downstream material business continued to be put into production.
At the same time, according to Antaike data cited in the company’s 18-year annual report, the demand for tungsten increased in 20185.
3%, leading to continued tight domestic supply, tungsten prices are expected to run high, tungsten molybdenum sector profitability or continued growth.
The price of lithium cobalt has stabilized in stages. The company ‘s gross profit margin for battery materials may rise. The company ‘s second phase of the Sanming base is about to start production in August 19th. The second phase of the Ningde and Haicang bases are running and commissioning, and the battery materials will continue to be put into production.Metal network. Since entering 19 years, the average price of lithium cobalt has fallen behind and stabilized. The production capacity of battery materials has begun to concentrate on leading companies. The company’s technology and scale advantages in the field of battery materials will gradually be realized, and the gross profit level may increase.
The company’s “overweight” rating is expected to be 0 for the company’s EPS in 19-21.
66 yuan / share, corresponding to the closing price of PE on April 12 is 36/28/23 times.
The company’s average PE level for the past 18 years is 42 times. Considering that the company’s tungsten and molybdenum and battery materials projects continue to be put into operation, it will bring continuous improvement in the company’s performance. We believe that the company’s estimate of 40 times PE in 19 years is reasonable, corresponding to a reasonable value of 17.
2 yuan / share, give the company an “overweight” rating.
Risks suggest that lithium-cobalt prices are falling; new energy vehicles are falling short of expectations; expansion projects are falling short of expectations.