Non-ferrous metal sector valuations move up investment opportunities

Since February of this year, the LME Composite Index, which represents the price trend of major metal products, has continued to hit new highs. Affected by the rise in metal prices, domestic and foreign non-ferrous metal listed companies have seen a large increase in the stock price, the non-ferrous metal industry valuation has moved up. As of March 1, the weighted average price-earnings ratio of the nonferrous metals industry in the domestic A-share market has increased from 23 times on January 31 to 26 times. We believe that the listed companies in the non-ferrous metal sector belong to many different sub-industries, so only a reasonable and appropriate grasp of the sub-industry's valuation level can be found in better investment opportunities. Below we choose three sub-sectors of copper, aluminum and zinc for analysis. Copper stocks: 15-20 times P/E ratio is a reasonable level Copper prices play a leading role in this metal price increase. Correspondingly, Jiangxi Copper's H-shares, A-shares, and copper-copper A-shares are currently up 13% from the end of January. %, 17%, and 20%, the two stocks have a 15x and 13x A-shares, respectively, but there are also small stocks in the copper sector. Yunnan Copper has only risen 8% in the same period, mainly due to the company’s The resource rate, production scale, profitability and other aspects have limited the company's valuation. We expect that in the first half of 2005, copper supply will remain tight due to the growth of investment in China's power industry. However, with the gradual increase in the global supply of copper and the slowdown in the overall development of the world's major economies, the whole year of 2005 The gap between the supply and demand of international refined copper will be reduced compared with last year, and the price of copper will also fall from the high point. It is reasonable for the listed companies of the industry to maintain a price-earnings ratio of 15 to 20 times. From the analysis of resource self-sufficiency rate, production scale, and technology level, Jiangxi Copper’s profitability and sustainable development capability are stronger than those of Tongdu Copper. According to the current price-earnings ratio or industry-weighted price-earnings ratio of copper copper industry, Jiangxi The value of the copper industry is underestimated, and there is still some upside opportunity for the market outlook. Aluminium shares: The valuation level has fallen. The domestic aluminum industry has been affected by the industry structure and the performance has been significantly different. Companies engaged in alumina production have strong profitability, such as listed company Shandong Aluminum's 2004 earnings per share of 1.23 yuan; earnings of electrolytic aluminum producers are generally declining. For instance, Yun Aluminum's shares in annual reports have been reported to be 0.35 per share. Yuan, which has increased from last year, but the growth mainly comes from futures investment income. Currently, Shandong Aluminum's P/E ratio is about 10 times. Its parent company, Chinalco (2600.hk), has a P/E ratio of about 9x (projected EPS for 2004 is 0.58 yuan/share), and its P/E ratio is relatively low. However, considering that alumina production capacity at home and abroad will increase exponentially in the future, alumina prices after 2005-2006 may experience a sharp decline. Therefore, from the perspective of market development, the alumina production enterprises should be given lower PE. multiple. The electrolytic aluminum industry is affected by macro regulation and the profitability of listed companies in the industry has declined to varying degrees, and the valuation of the industry has fallen. If the price-to-earnings ratio of Yun Aluminum is 12 times, the actual profitability of the company has been weakened due to the rising costs of alumina and electricity. Excluding the company's unstable futures investment income, based on the company's core business profits, the company's P/E ratio will rise to 17 times. Investors are advised to pay attention to electrolytic aluminum production company - Lanzhou Aluminum. At the end of 2004, the company’s major shareholder was changed to China Aluminum, the company’s alumina supply was guaranteed, the cost will be reduced (but the specific rate of decline is not yet clear); at the same time, the company’s new 150,000 tons capacity will be added from 2005 to 2006. Began to release, from the perspective of valuation, the company's future profitability changes will be reflected in the current stock price, target price of 6.9-7.5 yuan. Zinc stocks: Mineral resources are very important Recently zinc prices have also hit new highs. Since the 1990s, China has been a net exporter of zinc, but in 2004, China began to become a net importer. This also indicates that the global zinc market will remain in a shortage state in 2005, and the gap between supply and demand will increase. At present, the average price-to-earnings ratio of listed companies in the zinc industry is 29 times. The price-earnings ratios of Zhongjin Lingnan, HTC, and Chihong Zinc with zinc concentrate resources are 19, 20, and 27 times respectively. As in other metals industries, profits will be concentrated in upstream mines in the state of shortage. We are optimistic about HTC shares, the company's 2004 performance is expected to be 0.24 yuan / share, P / E will drop to 18 times. Since 2004, the company has acquired a large amount of zinc ore by means of bidding, shares, etc. The current reserves of mineral resources have exceeded South China Lingnan, and the zinc production capacity in 2005 will also increase by 100%. It is worth noting that the gross profit rate of the company's mining industry is as high as 87%. The trend of zinc prices in 2005 will enable the company's mining industry to maintain a high gross profit margin. From the valuation analysis, using the DCF (discounted cash flow) method, the company's stock price should be around 8.5-11.3 yuan. Due to the lack of mineral resources, Zinc Industry could not share the industry growth caused by the increase in zinc price in 2004. The company's current P/E ratio has reached 40 times, and the valuation is high. Zhuxi torches face the same problem.

Calcium Silicate Boards

Main uses:
Internal walls; external walls; partitions; fireproof and heat insulation structure; ceiling; sound-insulation structure; kitchen
door and toilet door;Curtain scaleboard; steel coating; anti-static floor, furniture board
Places of use:
Commercial buildings: shopping centers, office buildings, hotels, entertainment buildings.
Industrial sites: warehouses, factories, engine rooms
Residential areas: residential buildings, villas
Public places: hospitals, theaters, railway stations, libraries, offices, external walls, ceiling, firewall, wall panels, floor
steel, fire doors, exterior insulation panel, grout wall panels, light steel villa , heat insulation and sound insulation board,
ground chunk channel plate, anti-static flooring substrate, water decorative panels, wall decorative panels, wall insulation
panels, wall hanging plates, industrial thermal insulation boards, fireproof district in buildings.

Low Thermal Conductivity Calcium Silicate Board,Good Thermal Insulation Calcium Silicate Board,Light Weight Calcium Silicate Board,Easy Installation Calcium Silicate Board,Low Heat Shrinkage Calcium Silicate Board

Shangdong Lanchuang Economy and Trade Co.,Ltd. , https://www.mgoboardsdlceat.com