Hengbang (002237): Large shareholders participate in a large increase, highlighting development confidence, by-product sulfuric acid dragged down Q4 performance

Hengbang (002237): Large shareholders participate in a large increase, highlighting development confidence, by-product sulfuric acid dragged down Q4 performance

Investment Highlights Hengbang shares disclosed the 2019 annual results bulletin & planned to increase financing31.

700 million yuan: ① The company realized operating income of 285 in 2019.

460,000 yuan, an increase of 34 in ten years.

65%; net profit attributable to mother 3.

1.1 billion, a year-on-year decrease of 23.

24%; EPS 0.

34 yuan / share, a decrease of 24 previously.

44%; estimated average ROE 6.

9%, a decrease of 1 per year.


② The company plans to raise no more than 31 funds.

7 trillion, mainly for replenishment and repayment of loans, the issue price is 11.

61 yuan / share, of which the major shareholder Jiangxi Copper increased its holdings by about 10.

300 million.

③ The company announced that it plans to subscribe for non-public issuance of about 1.

200 million, and also announced the shareholder return plan for 2019-2021, the proposed cash dividend is more than 30%.

The large-scale participation of large shareholders has significantly increased their confidence in development. Employee shareholding and shareholder incentive plans have further enhanced the vitality of the company: ① This non-public offering is expected to significantly increase the scale of production and sales of related businesses such as gold smelting, and further enhance profitability.

② Jiangxi Copper continued to increase its holdings in large amounts to demonstrate the company’s strategic layout in its gold business; reorganization, further enhanced operating vitality through employee shareholding & shareholder return plans, and organically unified corporate employees, interests, and the interests of the company’s shareholders.

Rising gold and silver prices have resulted in a significant increase in revenue in 2019, and the price of sulfuric acid has been reduced to Q4 performance: ① In 2019, the company’s operating income increased by about 34 compared with the same period last year.

65% to 285.

4.6 billion US dollars, mainly due to the main product of gold, silver market sales prices rose more than caused by the company’s fourth quarter of 2019 revenue of about 79.

2.2 billion, a ring increase of 3.

75%, the income end of 2019Q4 remained stable compared with the third quarter.

② Affected by the sharp drop in domestic sulfuric acid prices in the fourth quarter of 2019, the company’s net profit attributable to its 重庆耍耍网 mother decreased to 57.65 million yuan in the fourth quarter of 2019, a decrease of 46 from the previous month.


Due to the impact of domestic public health events after the holiday, the problem of sulfuric acid expansion in the market continues, and it is expected that the price of sulfuric acid will still pose some pressure on the performance of short-term companies.

The combination of “endogenous + extension” helps the company to rapidly increase its self-produced gold business.

It is expected that the upper boundary of the gold mine in Liaoning will be expanded, and the mining and dressing construction will be expanded (the scale of mining and dressing will be expanded to the 1990s / year, and the annual output of gold concentrates will be 8).

(Initial 38) Construction of gold concentrate project was put into operation. It is expected that the company’s self-produced gold output will double in 2021 and 2022.

In addition, the expected investment in gold assets brought by Jiangxi Copper’s dominance, and the liquidity supplement brought by the fixed increase is expected to significantly increase the capacity accumulation of gold business in the future.

It is expected that the company will realize net profit attributable to mothers from 2019 to 2021.

1.1 billion, 4.

1.9 billion, 5.

98 trillion, the corresponding EPS is 0.

34 yuan, 0.

46 yuan, 0.

66 yuan, with a closing price of 16 on February 25.

The corresponding PE for 15 yuan / share is 47X, 35X, 25X.Maintain the level of “prudent overweight”.

Risk warning: gold and silver prices fall; copper prices fluctuate; comprehensive recovery of rare and precious metal resources replaces expectations