Shandong Gold (600547) Company Express: Overall Stable Production Internationalization Worth Looking Forward
The output is generally stable, and the internationalization is worth looking forward to. The company announced its 2018 annual report, and the performance was lower than expected.
The company’s operating income in 2018 was approximately 547.
880,000 yuan, ten years +7.
34%, net profit attributable to the parent company8.
760,000 yuan, at least -23.
01%, deducting non-net profit 8.
870,000 yuan, at least -22.
Among them, the operating income of the fourth quarter of 2018 was about 175.
2.7 billion, +55.
91%, +39 over one year.
80%, net profit attributable to mother 1.
0.6 billion, -33.
22% a year -56.
50%, realized deduction of non-net profit1.
1.7 billion, -27% MoM, -51 in ten years.
44%, lower than our United Nations expectations.
In addition, the company plans to use the total share capital of 22.
With 1.4 billion shares as the base, a cash dividend of 1 yuan will be distributed 青岛夜网 to all shareholders for every 10 shares, and at the same time, 10 shares will be converted into 4 shares for all shareholders by converting capital reserve to share capital.
Overall, 2018 production is in line with expectations, and rising costs and taxes are a drag on performance.
The output of mineral gold in 2018 was 39.
32 tons, +9 in the past.
57%, which is in line with the business plan in the 2017 annual report (estimated to produce 39 gold in 2018.
(86 tons), the growth was mainly due to the overall consolidation of the Beladero gold mine (consolidated in the sixth half of 2017).
49 tons of crops, consolidated for ten years in 2018.
95 tons of crops).
There are five major factors in the 2018 performance: First, the price of gold has fallen.
The average price of gold in 2018 was about 271 yuan / 佛山桑拿网 g, about 275 in 2017.
6 yuan / g acetic acid 1.
The second is a slight increase in costs.
Our calculations indicate that the company’s unit production cost of mineral gold in 2018 was approximately 153.
8 yuan / g, ten years +0.
The main reason is that Belladero’s unit sales cost of mineral gold in 2018 was about US $ 1112 / GBP, which is much higher than the company’s domestic mineral gold cost, which gradually increased the overall unit cost.
Moreover, the cost of Belladro in 18 years increased by about 24% compared with 17 years. Barrick’s annual report explained that the revaluation of fair value led to increased depreciation and a decline in grade.
85g / t, which decreases by 0 every year.
15 grams / ton.The third is the increase in business taxes and surcharges.
This is 3 in 2018.
63 trillion, +1 a year.
23 trillion, the main increase project from the joint venture MAS 0 in Argentina.
900 million export duties.
Fourth, financial expenses have increased.
The company’s financial expenses in 2018 were 7.
920,000 yuan, +58 for ten years.
32%, mainly because interest rate expenditure increased by about 2.
5 ‰, exchange loss increased by about 1 ‰; Fifth, income increased.
The interest rate in 2018 is about 5.
12 trillion, ten years +0.
76 trillion, the inflation rate from 33 in 2017.
04% to 35 in 2018.
In a single quarter, the volume and price of both products rose in Q4 2018, but costs and taxes also increased.
2018Q1-2018Q4 gold prices were 273.
3 yuan / gram, 2018Q4 gold price increased by 3.
3%, in 2018Q4, Belladero produced about 2.
48 tons, +57 from the previous month.
1%, sales gold 2.
38 tons, + 48% month-on-month, volume and price rose to 55% qoq in 2018Q4.
However, the increase in operating costs in Q4 2018 was a year-on-year increase of +63.
36%, of which Belladero’s unit cost of goods sold was 1352 US dollars / pound, +24.
In addition, business taxes and surcharges, management expenses, financial expenses, and income taxes have increased sequentially, which is expected to have a certain relationship with the financial settlement cycle, which will cause the fourth quarter of 2018 to decline sequentially and exceed expectations.
The amount of mineral gold planned for 2019 is slightly offset, and it is expected that there will be a continuous decline in financial costs in the future.
According to the annual report, the company’s 2019 gold production plan is 37.
87 tons (down 1 from 2018.
45 tons), we think this may be mainly due to a reduction in Belladro production.
First, the domestic mines are steadily improving, and the company’s total gold output in 2018 was about 986 thousand tons (about 31.
7 tons), the previous 増 4.
35%, and the grade of raw ore increased by 0.
05g / t to 2.
28g / t, there is still room for future growth in gold production and sales.
The second is that Barrique’s 2019 gold production indicator in the Barrick Annual Report is 230?250 kilo ounces (7.
8 tons), a decrease of about 0 compared with 2018.
55 tons, the reason may be mainly due to the lower grade, so there is also the possibility of rising costs.
However, the company’s interest-bearing debt decreased significantly. In the fourth quarter of 2018, the company’s long-term borrowings fell by approximately 46.
6 trillion, mainly for the repayment of capital acquisition loans by subsidiaries.
In addition, the company achieved operating net cash flow in 201829.
300 million US dollars, showing great strength, which is beneficial to the company to further reduce the short-term excess equivalent of the related scale, and subsequently the financial costs have significantly decreased.
The domestic gold industry leader, and has emerging growth space.
The company’s mineral gold output in 2018 is still the first in domestic listed companies. As of the end of 2018, the company’s gold resources were about 1,161 tons, ranking second in China, second only to Zijin Mining. It is one of the few leading companies whose business is pure gold.
In addition, the company seeks to cooperate with international giant Barrick Gold to actively expand overseas.
According to the company’s announcement, in addition to jointly operating the Belladero gold mine, in September 2018, the two parties separated the Mutual Strategic Investment Agreement and agreed that within 12 months of the conversion of the agreement, the two parties would purchase each other one or more times at public securities trading venuesThe investment value of listed stocks does not exceed 300 million US dollars (the two parties are basically equal).
Despite the increase in costs and expenses faced by overseas mines in the short term, we are still optimistic about the company’s international strategic direction. First, domestic high-quality gold projects are becoming scarce. Second, the wave of mergers and acquisitions by international gold giants led by Barrick is bound to bring global gold assetsOptimize redistribution, which provides the company with the possibility of overseas resource mergers and acquisitions.
Investment suggestion: “Buy-A” investment rating, maintain a 6-month target price of 47 yuan.
Gold production is expected to be 37 in 2019-2021.
6 tons, the average price of gold in 2019-2021 is 303, 330, 360 yuan / g, our calculations show that the company’s EPS in 2019-2021 is 0.
Considering that the company is the purest gold company with A shares, the output of mineral gold, the growth of reserves and the cost are quite advantageous, and it has the potential to transform the layout. The company’s 6-month target price is 47 yuan, which is equivalent to 41x PE in 2020.
Risk reminders: 1) The company’s mineral gold output is not up to expectations; 2) The Fed’s interest rate hike progress exceeded expectations, and the gold price fell.
3) The production cost of mineral gold increased more than expected.