Jiangxi Copper (600362): Take a step of “double innovation in three years” to acquire gold listed target
Event: The company issued the “Outbound Investment Announcement”, which intends to acquire approximately 2 of the Hengbang shares held by multiple shareholders including Hengbang Group and other shareholders through agreement transfer.
7.3 billion shares, accounting for 29 of the total shares of listed companies.
99%, the transfer price is about RMB 29.
After the transaction is completed, Jiangxi Copper will become the controlling shareholder of Hengbang.
The injection of high-quality gold assets will soon establish a gold listing platform.
The acquired Hengbang Co., Ltd. is a listed company whose main business is gold exploration, smelting and chemical production. Its main products include gold, silver, electrolytic copper, lead, sulfuric acid, ammonium phosphate and other fertilizer 都市夜网 products.
Judging from the output of various products, the company completed gold production in 201738.
5 tons, silver 550.
83 tons, electrolytic copper 14.
43, sulfuric acid 122.
From the perspective of gold reserves, Hengbang currently has 16 gold mining rights and 21 exploration rights, with a proven gold reserve of approximately 112.
01 tons, accounting for about 5 of the national gold reserves.
The acquisition of Hengbang shares will allow Jiangxi Copper to stabilize its domestic copper industry leader, further expand the precious metals sector, and establish a gold listing platform.
Hengbang’s five-year compounded net profit compound growth rate reached 10%, and its performance achieved steady growth.
According to the “2018 Results Express” issued by Hengbang, Hengbang achieved operating revenue of 21.2 billion in 2018, an increase of 7%.
21%, net profit attributable to mothers was 40,000 yuan, a year-on-year increase of 1.
49%, five-year composite strength of 10%.
According to the acquisition of equity, it is expected to bring 1.
Equity income of US $ 200 million, under which Jiangxi Copper achieved a net profit of 1.6 billion attributable to mothers in 2017. This asset injection will significantly increase the company’s net profit attributable to mothers.
The Jiangxi Copper Group’s “three-year innovation and doubling” tackling action plan indicates that the company’s growth can be expected.
On November 2, 2018, the company consolidated the “three-year innovation multiplication” mobilization conference to formally start the “three-year innovation multiplication” battle.
According to the action plan, the company will adhere to the “copper-oriented, strong non-ferrous, diversified development, global layout” strategy and the “innovative leadership, green development, leading the copper industry, and expanding opening” working principles, and strive to reach 2021It has doubled sales revenue and doubled its reserved resources. It has become the world ‘s largest copper smelter and copper processing company, striving to break through 10 billion yuan in profits and taxes, and its sales revenue is among the top five in the world ‘s mining industry.
The merger and acquisition of listed company platforms is a positive signal for the development of Jiangxi Copper Group’s acquisition of the capital market.
The supply and demand gap of copper mines has gradually expanded, and the loose macro environment has improved the copper price recovery.
From the perspective of copper ore supply, the top 8 ore copper nations only released federal gold on it.
We estimate that the gap between copper supply and demand will be 35 in 2018-2020.
56 samples, the gap between supply and demand slightly expanded.
At the same time, the China-US trade war has reached substantive progress, and the United States has postponed its original tariff measures for March.
Copper prices are expected to recover due to the market’s favourable substitution and the gradual expansion of the supply-demand gap brought about by the easing of the trade war.
Earnings forecast: Due to the uncertainty of the acquisition, we temporarily maintain our previous earnings forecast.
What do we expect in 2018?
Net profit attributable to mothers will be 27 in 2020.
9.6 billion, dynamic PE is 20/18/16 times.
Risk warning: Failure to acquire Hengbang shares; macro environment is less than expected; copper demand is less than expected.