Gold and Molybdenum (601958): Molybdenum’s main business continues to solidify its gross profit margin and maintain its upward trend

Gold and Molybdenum (601958): Molybdenum’s main business continues to solidify its gross profit margin and maintain its upward trend
The company achieved total operating income of 67 in the first three quarters of 2019.23 ppm, an increase of 3 per year.71%; net profit attributable to shareholders of the parent company.46 ‰, an increase of 96 per year.71%. Opinions: 1. The revenue and profit fell month-on-month, or due to the scale of trade: the company’s single quarter revenue in the third quarter of 21.8.6 billion, down 4 from the previous month.43%, net profit attributable to mother 1.7.4 billion, a decrease of 0 from the previous month.2.1 billion yuan.In the third quarter, molybdenum concentrates rose 8% month-on-month.85%, in contrast, performance does not match the price of molybdenum.We believe that this is mainly due to the company’s focus on the main molybdenum industry and continued to expand its trading business.In fact, the trade volume of the semi-annual report has fallen by nearly 8%, continuing the trend in 2018.However, even though the chain has declined a bit, the third quarter net profit is still at a high level before 2012. 2. The gross profit margin has maintained an upward trend and has reached the best level in ten years: we noticed that the company’s overall gross profit margin increased significantly in the third quarter.The single quarter gross margin in the third quarter reached 24.9%, compared with 22 in the second quarter.3% increase by 2.6 units; gross profit margin in the first three quarters of 20.98% reached the best level in 2009.This also confirms from the side that after reducing the low-margin trading business, the proportion of high-molybdenum molybdenum products of the company’s own business increased, which was the main factor leading to the quarter-on-quarter profit decline. 3. Management expenses and asset impairment are also the main reasons for the 10-year increase in profits: three quarterly reporting of management expenses2.1.4 billion, down from 0 previously.68 billion. At the same time, due to factors such as the recovery of molybdenum prices, asset impairment losses also positively affect profits1.4.4 billion.This is the largest increase in profits in the first three quarters.200 million major factors. 4. Demand is the main logic of improvement in supply and demand, maintaining the BUY rating: exactly as we made at the end of last year, the overall supply of the industry has maintained a low growth rate since 2018上海夜网论坛; meanwhile, steel substitution has promoted structural changes and increased internal demand to ensure.Although the current low season, but the expected price of molybdenum is limited, the company’s fourth quarter performance is still expected to exceed expectations.We expect the company to achieve net profit attributable to mothers in 2019-2021.99/6.48/7.79 trillion, EPS is 0.19/0.20/0.24 yuan, maintain the company’s buy rating, the target price of 8 in the next six months.36 yuan. 4. Risk warning: the risk of price fluctuations, downstream demand is less than expected.