Hengbang (002237) 2019 Interim Report Review: Major Production Lines Overhauled Company Performance Extends Period

Hengbang (002237) 2019 Interim Report Review: Major Production Lines Overhauled Company Performance Extends Period

The potential overhaul of the production line affects the company’s smelting output in the first half of the year, and the decline in copper concentrate processing fees and sulfates has led to an increase in net profit attributable to mothers.

The company’s maintenance production line resumed normal production. Rising gold prices and the release of production capacity of rare and precious metals recycling projects will drive growth in the second half of the year, maintaining a “Buy” rating.

Under the potential production line overhaul, the company’s performance was affected due to the decline in production and rising costs.

H1 companies achieved operating income of 129 in 2019.

90,000 yuan, an increase of 23 in ten years.

6%, of which, after excluding substantial increase in trade income, operating income decreases by 15 per year.

8%; net profit attributable to mother 1.

46 trillion, a decrease of 42 a year.


First of all: 1) Two of the three main production lines are overhauled, the output of major products has fallen and costs have risen; 2) processing fees for imported copper concentrate have fallen; 3) the market price of sulfuric acid has fallen.

The company’s production line overhaul is completed to supplement the production capacity of new projects, and output will increase in the second half of the year.

Affected by the overhaul of the production line, the H1 company’s gold / silver 杭州夜网 / electrolytic copper operating income dropped significantly in 20197.

9% / 16.

2% / 13.

1%, the corresponding business gross profit decreased by 19 respectively.

1% / 49.

8% / 84.


With the completion of the overhaul of the production line, the capacity release of projects such as the harmless treatment of wet gold smelting slag and electrolytic capacity expansion is expected to increase by 1 in 2019 respectively.

1/50 tons, the increase of electrolytic copper / electrolytic lead production is 0.


5 Initially, the smelting output of various metals showed a steady growth trend.

Optimistic about the company’s performance in the second half of the year, Jiangxi Copper’s industry synergy is obvious after it took over.

The global economy is facing the risk of recession, and the actual interest rate level has continued to decline since the rate cut cycle. It is expected that the average price of gold in 2019/2020 will be 1400/1500 USD / revenue, which will drive profit release in the second half.

Jiangxi Copper intends to build the company into a development platform for the gold sector. It is expected to inject high-quality gold sector assets in the future. The company’s gold smelting and metal recycling technology industry leader will lead to significant synergies in the future and will be beneficial to the company’s long-term development.

Risk factors: the risk of price fluctuations of major products; the company’s project construction progress is less than expected; the risk of uncertainty in Jiangxi Copper’s ownership and asset injection.

Investment suggestion: As a high-quality target for gold smelting, the company has obvious technological and scale advantages, cost advantages to improve profitability, and rare and precious metals recycling to increase profitability.

The net profit attributable to the parent company for 2019-2021 is maintained at 4.



The judgment of 29 trillion corresponds to 0 for EPS.



80 yuan, maintain “Buy” rating.