Li Chao, chief nonferrous analyst of CITIC Securities, said in an interview with China times that Zijin Mining is in line with the Growth Logic of Pro cyclical stocks, mainly due to the companys copper output expansion, the increment and growth rate are too fast..
The year 2020 is coming to an end. With Zijin Minings efforts at the end of the year, its share price has already caught up with another giant Chifeng gold. Data show that since this year, Zijin Minings share price has risen nearly 90%, Chifeng gold has risen nearly 250%.
Debt over 100 billion
On November 18, Zijin Mining issued the draft incentive plan for restricted shares in 2020, which plans to grant 100 million restricted shares to 700 employees of the company at the price of 4.95 yuan per share, accounting for 0.39% of the total share capital.
There is no free lunch in the world, and there are exchange conditions for 100 million shares of restricted stock incentive plan. Zijin Mining requires that the assessment conditions include: Taking 2019 as the base, the compound growth rate of annual net profit from 2021 to 2023 shall not be less than 25%, the compound growth rate of return on net assets from 2021 to 2023 shall not be less than 10%, and the asset liability ratio shall not be higher than 65%.
In addition, the company plans to grant restricted shares to the management and employees, and directly link 50% of the reward remuneration of the management with the increase of the stock price. This means that 50% of the companys executive compensation will be converted into virtual shares, which will be directly linked to the growth of the companys share price.
Li Chao told the China times that the plan will help the company to establish a long-term and effective incentive mechanism, make the interests of shareholders and the company deeply bound with the companys development, fully mobilize the enthusiasm of the companys managers and core backbones, promote the steady progress of exploration and reserve increase, energy production expansion and extension merger and acquisition, so as to further consolidate Zijin Mining as a world-class mining enterprise The companys performance is expected to show explosive growth in the next few years.
Under open source, how about the companys ability to intercept? The third quarter report shows that Zijin Mining has good cost control ability and a relatively stable financial structure, but the asset liability ratio and interest bearing debt ratio are still high although there is a downward trend.
According to the data, as of the end of the third quarter, the management expense ratio and sales expense ratio of Zijin Mining Co., Ltd. continued to decline to 2.2% and 0.4%, while the asset liability ratio and interest bearing liability ratio reached 60% and 39%, and the companys liabilities totaled 101.8 billion yuan.
Non ferrous metal stocks Pro cyclical market, Chifeng gold with the help of gold production skyrocketed, and Zijin Mining played the idea of copper production.
The third quarter report shows that in the context of gold, copper and zinc prices warming, Zijin Mining created the highest single quarter profit in history in the third quarter of this year, with a net profit of 2.15 billion yuan, a year-on-year increase of 55.7%; and an operating income of 47.291 billion yuan, a year-on-year increase of 37.4%.
Zijins shares are up 90% this year. In the first three quarters, its operating revenue was 130.43 billion yuan, up 28.3% year-on-year; the net profit attributable to the parent company was 4.572 billion yuan, with a year-on-year increase of 52.1%; the net profit of deducting non return to parent company was 4.666 billion yuan, with a year-on-year growth of 69.5%; the net cash flow from operating activities was RMB 9.905 billion, with a year-on-year increase of 63.52%.
Well known private equity Gaoyi assets continue to bullish Zijin mining. The fund managed by Deng Xiaofeng appeared in Zijin Minings top 10 circulating shareholders list in the third quarter of 2019, and has continuously increased positions since then. In the third quarter of 2020, Gao Yi Xiaofeng No.2 sent a letter to the fund to increase the position of Zijin mining. What is worth pondering is that CITIC Trust Ruijin 43 Gaoyi Xiaofeng investment collective fund trust plans to reduce 50 million shares of Zijin Mining in the third quarter and buy foster (603806. SH) and Wandong Medical (600055. SH). In addition, Chen Jinghe increased his holdings of 950000 shares of the company through the secondary market on September 8 this year, with an average price of 6.95 yuan per share. The investment of 6.6 million yuan has also gained a lot. According to the latest closing price of 8.98 yuan / share, he has made more than 1.9 million yuan. Source: China Times editor in charge: Chen Hequn_ NB12679
Well known private equity Gaoyi assets continue to bullish Zijin mining. The fund managed by Deng Xiaofeng appeared in Zijin Minings top 10 circulating shareholders list in the third quarter of 2019, and has continuously increased positions since then. In the third quarter of 2020, Gao Yi Xiaofeng No.2 sent a letter to the fund to increase the position of Zijin mining.
What is worth pondering is that CITIC Trust Ruijin 43 Gaoyi Xiaofeng investment collective fund trust plans to reduce 50 million shares of Zijin Mining in the third quarter and buy foster (603806. SH) and Wandong Medical (600055. SH).