Shengda Mining (000603): The silver giant is still growing and the silver giant is still growing
This report reads: The company’s semi-annual performance is in line with expectations. In the future, Dongsheng / Jinshan will further expand its production, and the company will usher in volume and price increases in the silver cycle.  Investment Highlights: The semi-annual report is in line with expectations and maintains an overweight rating.The company’s semi-annual net profit attributable to its mother2.1.2 billion, +9 per year.03%, in line with expectations.Considering that the company will still put into operation two mines in the future, the silver output will be further expanded, and the company’s 2019-2020 EPS forecast is raised to 0.63/0.70 yuan (previous value was 0.59/0.59 yuan), the other 2021EPS forecast 0.80 yuan, raise the target price to 17.5 yuan (previous value was 13.57 yuan), corresponding to the 2020 forecast PE estimate of 25X, the current space is 21.4%, maintaining the overweight rating.  The acquisition of Deyun Mining increased the mining and dressing capacity again.2019H1 revenue 11.57 trillion, +30 a decade ago.88%; net profit attributable to mother 2.12 trillion, ten years +9.03%; deduct non-attributed net profit 1.2.5 billion, +1 a year.99%.In July 2019, the company completed the acquisition of 44% equity of Deyun Mining.Added 945 silver metal.97 tons, with an average grade of 189 grams / ton, the company’s silver reserves will exceed 9,000 tons.At present, the production of Yindu / Jindu / China Everbright / Jinshan belongs to the company, and Jindu Mining Concentrator has gradually reached its production capacity, which has greatly increased its production capacity.However, due to the decline in lead and zinc prices in the first half of the year, the company’s lead concentrates and zinc concentrates’ gross profit margins decreased.1/8.13 pct, affecting the company’s overall gross profit margin.In terms of expenses, the company’s financial expenses increased by 784 in the first half of the year.87% to 2578.20,000 yuan, mainly due to the acquisition of Jinshan Mining’s new loans in 2018.  The gold-to-silver ratio is still low, and the company will usher in both volume and price.Jinshan Mining 48’s EIA approval for projects reaching the expected scale has achieved success, and other procedures are progressing as planned. It is expected that the expansion of production will be completed by the end of June 2020.Among them, 3.The construction of a 5-level manganese sulfate monohydrate project is expected to be completed before the end of the year.At the same time, the Bayanwura mining area of Dongsheng Mining has gradually proved that the amount of silver metal is more than 556 tons, and the relevant production process is currently underway. As a separate mining area of Yindu Mining, it will greatly increase the supply capacity and increase the 南京桑拿网 company’s profit.At present, the gold-to-silver ratio is still at a low of 88. In the gold cycle, the silver price may gain stronger upward flexibility through the gold-to-silver ratio repair, and the company’s performance will usher in volume and price.  Catalysts: Jinshan, Dongsheng advance ahead of schedule, silver exceeds expected growth risk tips: company project progress is less than expected risk alert: company project progress is less than expected