Mount Everest, Tibet (600338): One Body with Two Wings Flying Together

Mount Everest, Tibet (600338): “One Body with Two Wings” Flying Together
The company published the 2018 report and the first quarter report of 2019, with operating income of 20 in 2018.500 million US dollars, the net profit attributable to the mother is 900 million US dollars, a year-on-year decrease of 19%, reaching a total of 1.18 yuan.Operating profit in 2019 fell 23% to 4.30,000 yuan, net profit fell 41% to 1.300 million. Falling prices and falling output have led to a decline in profitability in 2018 and the first quarter of 2019: the production of mineral lead and zinc metal in 2018 fell by 17% and 11% respectively.In the first quarter of 2019, the plant was selected for technological transformation to increase the production capacity by 100 tons, resulting in a decline in product output.However, the company announced that it plans to mine 353 tons in 2010 and 330 tons in beneficiation; the amount of lead, zinc, zinc, copper and silver produced in the concentrate will be 15%.4 Positive electrode, of which lead 6.3 cobalt, zinc 8.8 cobalt, copper 0.3 Antimony, 99 tons of silver, lead and zinc metals increased by 34% and 7% respectively; Embracing the country ‘s “Belt and Road” event will once again enter a period of high-speed development: April 25, 2019, the company in the second “Belt and Road””The Entrepreneur Conference of the International Cooperation Summit Forum has broken through the cooperation agreement with the government departments of Tajikistan and Argentina.According to the agreement, the company will double the annual processing capacity of Tazhong Mining to 600 mm in about 3 years.The SDLA project in Argentina plans to expand the capacity of 25,000 tons of lithium carbonate equivalent per year based on the existing capacity of 2,500 tons of lithium carbonate equivalent per year. An important step to start high-speed development in 2019: In the first quarter of 2019, Tazhong Mining’s 100-year / year beneficiation plant has begun to expand. During the year, the company’s beneficiation capacity replaced 300 replacement / year expansion to 400 replacement / year.For the SDLA project in Argentina, the company plans to focus on the application of the EIA license in 2019 and the full-scale construction of the Yantian infrastructure project. Maintain “Highly Recommended-A” rating.”Integral two wings (non-ferrous metal + new energy, new materials)” ushered in rapid volume.The company’s current profit contribution comes from Tazhong Mining. In 2018, Tazhong achieved a net profit of 1 billion US dollars. Assuming that the sales price is unchanged, three years later, the production capacity will double and the profitability will double.Regardless of Tazhong’s mining expansion and SDLA project launch, the average metal price from the early to the reporting date is taken as the average price in 2019, and the price will remain flat for the next two years. The company’s net profit for 2019-2021 is expected to be 8.4/9.4/9.500 million, corresponding to P / E ratios 南宁桑拿 of 21, 19 and 19 times, providing a safe boundary for company evaluation.Maintain investment rating of “Highly Recommended-A”; risk of less-than-expected progress in expansion projects.