Jinshi Resources (603505): Fluorite volume and price both increased 1H2019, net profit attributable to mother increased substantially by 161%
1H2019 realized net profit attributable to mother 1.110,000 yuan, an increase of 160 in ten years.67%.The company announced 1H2019 to achieve operating income3.580,000 yuan, an increase of 62 in ten years.77%; net profit attributable to mothers1.110,000 yuan, an increase of 160 in ten years.67%; EPS0 achieved.46 yuan / share.Among them, 2Q2019 achieved operating income2.26 ppm, an 87-year increase.05%; net profit attributable to mother is 0.690,000 yuan, an increase of 214 in ten years.12%. Amethyst mining output increased, and fluorite sales increased significantly.Due to the increase in the output of amethyst mining in the axial direction, the company gradually produced fluorite14.43 Initially, the annual growth rate was 31%; the main varieties were acid-grade fluorite fine powder9.78 Initially, it increased 31% annually; high-grade fluorite lump ore4.57 At least, a substantial increase of 167% per year. The company gradually sells fluorite14.25 Initially, the annual growth rate was 28%; the main varieties of acid-grade fluorite refined powder9.11 Initially, 22% annual growth; high-grade fluorite lump ore4.52 At least, short-term substantial growth of 195%. Affected by supply-side reforms, the price of fluorite has increased significantly.According to incomplete statistics of Baichuan Information, the operating rate of domestic fluorite powder in the first half of 2019 was around 40%.Among them, most manufacturers in Inner Mongolia have stopped for 1-3 months. Xinyang in Henan and Guangde in Anhui have been undergoing large-scale replacement and rectification since April. There is no plan for resumption of production. Mining and replacement in Guangxi and other places in Jiangxi, some manufacturers laterFacing a permanent shutdown. Affected by this, the price of fluorite in 1H2019 increased significantly.According to the reported amount, the average content of the company’s acid-grade fluorite fine powder was 2,563 yuan / ton, an increase of 416 yuan / ton, or 19% over the same period of the previous year. Xiangzheng Mining gradually expands production, and will continue to contribute incrementally in the later period.The reporting company Xiangzheng Mining basically completed the installation and commissioning of equipment in the second quarter. Commissioning and trial production began in May and June. About 5,900 tons of high-grade fluorite lump ore and about 3200 tons of fluorite fine powder were put into production.It has increased in the first two months. However, the total output and quality are still unstable, and the indicators are still being improved. After normal production, the products of Xiangzhen Mining will be mainly high-grade fluorite lump ore and acid-grade fluorite fine powder.We believe that the gradual release of capacity through Xiangzheng Mining will significantly contribute to the company’s fluorite production and sales this year and next. Profit forecast and investment rating.We expect the company’s EPS for 2019-2021 to be 1.01, 1.27, 1.61 yuan / share, the company is the leader in the fluorite industry. The growth rate of net profit attributable to mothers in 2019-2021 will be 76%, 26%, and 27%. Combined with the evaluation of comparable companies, we carefully consider 21-23 times PE in 2019, corresponding toReasonable value range 21.21-23.23 yuan, the initial coverage given the initial market 天津夜网 rating. risk warning.Potential risks from the price of fluorite, the risk of falling demand for downstream fluorochemicals, and the expected risks arising from the commissioning of new mines.