According to the public data of Securities Star, Zijin Mining (601899) recently released its third quarter report for 2024. According to the financial report, Zijin Mining's revenue and net profit increased year-on-year. As of the end of the reporting period, the company's total operating income was 230.396 billion yuan, an increase of 2.39% year-on-year, and the net profit attributable to the parent company was 24.357 billion yuan, an increase of 50.68% year-on-year. According to the single-quarter data, the total operating income in the third quarter was 79.98 billion yuan, an increase of 7.11% year-on-year, and the net profit attributable to the parent company in the third quarter was 9.273 billion yuan, an increase of 58.17% year-on-year.
The performance of the data indicators announced in this financial report is still good. Among them, the gross profit margin was 19.53%, an increase of 28.85% year-on-year, the net profit margin was 12.88%, an increase of 44.4% year-on-year, the total sales expenses, management expenses and financial expenses were 7.924 billion yuan, the three fees accounted for 3.44% of revenue, a year-on-year decrease of 5.72%, the net assets per share were 4.99 yuan, an increase of 27.16% year-on-year, the operating cash flow per share was 1.36 yuan, an increase of 39.05% year-on-year, and the earnings per share were 0.92 yuan, an increase of 50.08% year-on-year
The financial report analysis tool of Securities Star Price Investment Circle shows:
- Business evaluation: The company's ROIC last year was 11.07%, and the return on capital was average. Last year's net profit margin was 9.05%, and after all costs are included, the added value of the company's products or services is average.
- Financing dividends: Since the company was listed 16 years ago, the cumulative total financing was 22.617 billion yuan, the cumulative total dividend was 46.009 billion yuan, and the dividend financing ratio was 2.03. The company borrowed more money than dividends last year, and it is necessary to pay attention to the company's operating conditions and dividend sustainability.
The financial report check-up tool shows:
- It is recommended to pay attention to the company's cash flow position (monetary funds/current liabilities are only 40.57%)
- It is recommended to pay attention to the company's debt situation (the interest-bearing asset-liability ratio has reached 39.99%)
Analyst tools show that securities researchers generally expect 2024 results of 31.427 billion yuan, with an average earnings per share of 1.18 yuan.
The company is held by 5 star fund managers, these star fund managers have recently increased their positions, and the most concerned fund manager who holds the company is Zhou Haidong of China Commercial Fund, ranking in the top ten in the top investment list of Zhengxing public fund managers in 2023, with a total fund size of 33.984 billion yuan, and has been in the industry for 10 years and 170 days.
The fund that holds the most Zijin Mining is Huabao CSI 100 ETF, with a current scale of 3.174 billion yuan and the latest net value of 0.9547 (October 18), up 3.75% from the previous trading day and 11.31% in the past year. The current fund manager of the fund is Chen Jianhua.
Recently, a well-known organization has paid attention to the following issues of the company:
Q: Zijin Mining Group Co., Ltd. (hereinafter referred to as the "Company") held the 2024 semi-annual results briefing on August 26, 2024 at the SSE Roadshow Center in the form of online text interaction.
A: Zijin Mining Group Co., Ltd. (hereinafter referred to as the "Company") held the 2024 semi-annual results briefing on August 26, 2024 at the SSE Roadshow Center in the form of online text interaction
1. The company is already a leader in the domestic non-ferrous metals industry, how does its comprehensive strength compare with other international mining enterprises?
In the 2024 Forbes Global 2000 list, the company ranks 267th, and the list of global metal mining companies ranks 5th and global gold companies 1st. In the 2024 Fortune Global 500 list, the company ranks 364th, and from the perspective of the industry profitability indicators of the list, the company's profit ranks 5th among global metal mining enterprises and 1st among Chinese metal mining enterprises, and the return on assets ranks 3rd among global metal mining enterprises.
2. What is the reason for the slight increase in the company's revenue and net profit in the first half of the year?
In the first half of the year, the company's net profit increased mainly due to the year-on-year increase in the production and sales of mineral copper and mineral gold; Metal selling prices increased year-on-year; By controlling costs and increasing efficiency, the cost of some mineral products has been reduced.
3. The company's 24H1 copper concentrate sales volume is 315332 tons, a year-on-year decrease of 4% from 328792 tons last year, why the company's copper production has increased, but the sales volume has declined?
The main reason is the change in the product structure of Cypriot copper, the production and sales of copper concentrate in the first quarter of 2023, and the technical transformation and production of the smelter from April 2023, and the product of Cypriot copper is mineral electrolytic copper.
4. How much will the company's performance increase year-on-year? What are the plans to build the world's No. 1 gold stock?
In the first half of 2024, the company's performance indicators reached a new high, achieving a total profit of 21.6 billion yuan, a year-on-year increase of 38.9%, a net profit attributable to the parent company of 15.1 billion yuan, a year-on-year increase of 46.4%, and a net profit attributable to the parent company of 15.43 billion yuan, a year-on-year increase of 59.8%; Net cash flow from operating activities was 20.4 billion yuan, a year-on-year increase of 27.6%. For details of the Company's future development plan, please refer to the "Announcement on the Production Plan of Major Mineral Products in the Next Five Years (to 2028)" disclosed by the Company on May 17, 2024.
5. In the first half of this year, the price of gold rose a lot, how did gold contribute to the company's performance?
In the first half of the year, the mine produced 35.4 tons of gold, up 9.5% year-on-year. smelting, processing and trade gold was 113.8 tons, down 5.1% year-on-year. The sales revenue of the gold business accounted for 46.5% of the operating income (after offsetting) and the gross profit accounted for 28.3% of the Group's gross profit during the reporting period.
6. Does the change in the RMB exchange rate have a big impact on the company's cost?
In the first half of the year, the average exchange rate of RMB against the US dollar depreciated compared with the same period last year, resulting in an increase in the cost of converting US dollars into RMB during the reporting period, which affected the year-on-year increase rate of 0.7 percentage points in the cost of copper concentrate in mines, 2.1 percentage points in the cost of electrowinning copper in minerals, 2.5 percentage points in the cost of electrolytic copper in minerals, and 2.5 percentage points in the cost of gold ingots in mines increased by 2.5 percentage points year-on-year. The cost of gold concentrate increased by 0.8 percentage points year-on-year, and the cost of zinc produced by mines increased by 1.3 percentage points year-on-year.
7. Is there any change in the production plan of 73.5 tons of gold and 111 tons of copper formulated by the company at the beginning of 2024? Also, look ahead to gold and copper prices in Q4 2024 and 25. The company has a 44% equity interest in the Haihai Gold Mine, and the Haiyu Gold Mine can be put into production in 26 years, what is the production plan of the Haiyu Gold Mine in 26 and 27 years?
(1) The company is currently promoting various tasks according to the disclosed output plan; (2) For details of the company's views on the price trend of gold and copper, please refer to the "Industry Pattern and Trends" section of the Company's "2024 Semi-Annual Report"; (3) For details of the company's mineral gold production planning data, please refer to the "Announcement on the Production Planning of Major Mineral Products in the Next Five Years (to 2028)" disclosed by the company on May 17, 2024.
8. What are the company's incremental projects with strong certainty in the future?
For the introduction of the company's incremental projects, please refer to the "Announcement on the Production Planning of Major Mineral Products in the Next Five Years (to 2028)" disclosed by the company on May 17, 2024.
9. What is the company's future total output plan for copper, gold, zinc, silver, iron, molybdenum and lithium?
The company's production guidance for copper, gold, zinc/lead, silver, lithium (LCE) and molybdenum in the next five years is detailed in the "Announcement on the Production Planning of Major Minerals in the Next Five Years (to 2028)" disclosed by the Company on May 17, 2024.
10. What is the future development plan of the company's copper mine to increase reserves?
Underground mining of the shallow No. II ore body of Tongshan Copper Mine is already under construction and is expected to be put into operation in 2024, with an annual mining scale of 3 million tons, and an annual output of 12,000 tons of copper, 170 tons of molybdenum, 0.3 tons of gold and 5 tons of silver after reaching production. The deep copper ore of Tongshan is a porphyry deposit, the thickness of the ore body is large, the burial is deep, the grade is not high, the company's research and design unit is carrying out the deep copper mine development program research, will implement the natural-forced induced caving mining method to mine the deposit, through technological progress and innovation, is expected to be able to obtain good development benefits.
11. Dear management, first of all, congratulations to the company on its good business results. But I have a hidden concern, I am very worried that after enterprising Chinese companies like Zijin Mining and China Molybdenum enter the copper mining industry on a large scale, it will cause overcapacity in the industry and push prices down, such cases are constantly staged in photovoltaic, lithium battery, lithium mines, and cobalt mines, and ultimately damage the entire industry including its own interests, how does the company view this problem?
From a fundamental point of view, the uncertainty of global copper concentrate supply still exists, with unabated inflationary pressure at the mine end, increasing difficulty in technical operation, increasing community conflicts, prominent environmental and water resource problems, and increasing difficulty in the exploration of high-quality copper resources and a long development cycle. On the demand side, the clean energy transition is booming, the demand for electricity is growing rapidly, the artificial intelligence and electric vehicle industries are advancing rapidly, and the copper consumption in emerging economies is rising steadily. There has been no significant change in the medium- and long-term copper supply shortage.
12. Copper prices have fluctuated greatly recently, how does the company see the next copper price trend?
The global economy is weakening, but the supply side of resources is tightening, the exchange can see that the inventory is relatively low, and the short-term copper price is expected to fluctuate widely. The clean energy transition is booming, the artificial intelligence and electric vehicle industries are advancing rapidly, the copper consumption in emerging economies is rising steadily, and the medium and long-term copper supply shortage situation has not changed significantly.
13. What is the company's view on the follow-up copper price? Will the significant expansion of Chinese copper companies China Molybdenum and Zijin Mining in the first half of the year and their subsequent expansion plans lead to a reversal of the supply and demand situation in the industry?
14. Is the company optimistic about the gold price this year and next as expected by the market?
Interest rate cut expectations and geopolitical wrestling, coupled with uncertainty such as a political election year to push up global safe-haven demand, the company believes that gold's upward momentum is still strong, and gold prices are expected to remain high and volatile in the short term due to the Fed's interest rate cut expectations and geopolitical events.
15. The company's mining energy consumption is large, do we have any measures in terms of energy transition?
The company actively carries out the transformation of the energy structure of "oil to electricity" and "oil to gas". In the first half of the year, 183 electric mining trucks, 6 electric shovels, and 43 other electric vehicles were introduced, with a total of 524 electric vehicles of various types. Actively introduce LNG mining trucks, and cooperate with PetroChina to build a skid-mounted LNG container refueling station in Wuqia Zijin Zinc Industry to improve transportation efficiency while cleaning and meeting the refueling needs of mining vehicles in mining areas.
16. The company continues to increase its holdings in Longjing, what is the synergistic effect with Longjing?
The company's holding subsidiary, Longking Environmental Protection, continued to promote the "environmental protection + new energy" two-wheel drive industrial layout, the air pollution control business increased steadily, and the operating cash flow increased by nearly 500% over the same period last year; The layout of mine wind, solar and green power projects has been accelerated, and the first phase of the "zero-carbon lithium extraction" source-grid-load-storage demonstration project and the Wucha photovoltaic project have been connected to the grid for power generation, and the new energy mining equipment business has been launched at the same time, helping the company's mining equipment to "convert oil to electricity", and the industrial synergy between the two sides has been further deepened.
The above content is compiled by Securities Star based on public information, generated by intelligent algorithms, and does not constitute investment advice.