Shandong Gold (600547): One of the core assets in the second half of the year when steady growth is underway

Shandong Gold (600547): One of the “core assets” in the second half of the year when steady growth is underway

Investment Highlights[Event]: Shandong Gold disclosed the company’s semi-annual report for 2019 on August 29, 2019, and the company realized operating income of 311 in the first half of 2019.

950,000 yuan, an increase of 19 in ten years.

89%; Net profit attributable to shareholders of listed companies.

65 ppm, a ten-year increase of 8.

58%; Blacks earn 0.

30 yuan.

In the second quarter, it achieved operating income of 205.

740,000 yuan, an increase of 73 in ten years.

58%, an increase of 93 from the previous month.

70%, net profit attributable to shareholders of listed companies.

99 ppm, an increase of 12 in ten years.

66%, a decrease of 18 from the previous month.

31%.

  In the first half of the year, the “both volume and price” of gold increased the gross profit2.

4.5 billion.

In the first half of 2019, the company’s mineral gold output reached 20.

51 tons, an annual increase of 5.

77%, or related to increasing domestic development; the domestic spot price in the first half of the year was 288 yuan / gram, an increase of 6 per year.

11%.

In the first half of the year, the company’s gross profit growth was mainly driven by the “growth in volume and price” of the gold business, achieving a ten-year growth in gross profit2.

45 ppm to 26.

8.4 billion.

  But the cost increases by 1 every year.

1.6 billion, while operating efficiency has improved.

Total expenses during the first half of the year13.

83 ppm, an increase of ten years.

16 trillion, an increase of 9.

16%, of which sales expenses increased by 21 in ten years.

93.
Mainly due to the increase in transaction fees and transportation insurance premiums, R & D expenses were separately listed in the management expenses and further increased1.

84.
Mainly due to the increase in employee compensation, and the decrease in financial expenses of subsidiaries due to reduced liabilities14.

95%.

From the perspective of 南宁桑拿 operating efficiency, the expense ratio increased during the first half of the year and decreased by zero.

44 pct to 4.

43%.

  In addition, in the first half of the year, overseas subsidiaries increased export tariffs plus taxes by an additional 1%.

At 29 trillion, the company’s net profit attributable to the parent increases by 0 every year.
5.3 billion to 6.

65 ppm, an increase of 8.
58%.

  The increase in net income from changes in fair value in the second quarter resulted in a performance increase of nearly 20% from the previous quarter.

In the single quarter, the company achieved gross profit of 13 in the second quarter.

67 ppm, a reduction of 0 per year.

500,000 yuan, the total cost of 7.

0.7 million yuan, an increase of 0 every year.

On the whole, the company’s main business was stable compared with the previous quarter, while net income decreased by US $ 100 million due to changes in fair value, and net profit decreased by 0 compared with the previous month.

67 ppm to 2.

9.9 billion yuan, a decrease of 18.

31%.

  The trend growth of gold price will boost the company’s performance.

The U.S. economy has peaked in Q4 of 18, and the leading indicators of the U.S. since the end of May point to a decline in economic trends. In particular, if the U.S. increases tariffs on commodities, it may further drag the U.S. economy and continue to cut interest rates.The downward trend of the rate has not changed. At this point in time, the price of gold has risen to the first stage of the economic downturn-the yield on trading government bonds has fallen, especially the overlapping Sino-US trade relations have gradually deteriorated, the risk aversion has increased, and the price of gold has increased.

The company’s focus on the “gold” main business will also fully benefit from the growth of gold during this period.

  Profit forecast and investment recommendations: We estimate that the company’s net profit attributable to its mother in 2019/2020/2021 will be 23 respectively.

43/33.

49/37.

980,000 yuan, the corresponding EPS is 0.

756/1.

080/1.

225 yuan, the current expected corresponding PE level is 52.

75/36.

91/32.

54X, maintain “Buy” rating.

  Risk alert events: the risk of macroeconomic fluctuations; the risk of core product prices falling; the risk of changes in related industrial policies; the risk that the project is not progressing as expected.