Research Report

Author

研究部 (Research Team)
輝立証券

Phone: (852)22776555  
Email Enquiry For Research Report and Business enquiry

Jiangxi Copper (358.HK) - Downside Risk in Operation Results!

Tuesday, October 16, 2012 Views10482
Jiangxi Copper(358)
Recommendation on  16 October 2012
Recommendation Reduce
Price on Recommendation Date $19.440
Target Price $17.950

Company Overview

Jiangxi-Copper is the nation's largest integrated copper producers, its copper reserves is 1/3 of the whole Chinese industrial reserve. Additionally, Jiangxi-Copper is also an important chemical industry base in China.

Summary

The revenue growth of Jiangxi-Copper in 1HY of 2012 is significant, but with rapid increase of multiple costs, the profit margin has been decreasing obviously.

Since the market demand goes down continuously, the profit margin will be lower in the future. Besides, multiple projects will put into operation in 2HY that may exacerbate the industry capacity.

The non-ferrous metals market will fall into recession probably. Besides, since most countries adopt loose monetary policy that will affect the effect of QE3 and the price rebounding of non-ferrous metals. It`ll also put negative influence to company operation results.

The EPS of 1HY of 2012 is CNY 0.77, we estimate that the operation performance of 2012 won`t be good as 2011, the EPS of 2012 will be CNY 1.4, the target price in next 6 months is HKD 17.95 with 10x PE, the rating is Reduce.

Financial Data

Click Here for PDF format...

This report is produced and is being distributed in Hong Kong by Phillip Securities Group with the Securities and Futures Commission (“SFC”) licence under Phillip Securities (HK) LTD and/ or Phillip Commodities (HK) LTD (“Phillip”). Information contained herein is based on sources that Phillip believed to be accurate. Phillip does not bear responsibility for any loss occasioned by reliance placed upon the contents hereof. The information is for informative purposes only and is not intended to or create/induce the creation of any binding legal relations. The information provided do not constitute investment advice, solicitation, purchase or sell any investment product(s). Investments are subject to investment risks including possible loss of the principal amount invested. You should refer to your Financial Advisor for investment advice based on your investment experience, financial situation, any of your particular needs and risk preference. For details of different product's risks, please visit the Risk Disclosures Statement on http://www.phillip.com.hk. Phillip (or employees) may have positions/ interests in relevant investment products. Phillip (or one of its affiliates) may from time to time provide services for, or solicit services or other business from, any company mentioned in this report. The above information is owned by Phillip and protected by copyright and intellectual property Laws. It may not be reproduced, distributed or published for any purpose without prior written consent from Phillip.
Top of Page
Contact Us
Please contact your account executive or call us now.
Research Department
Tel : (852) 2277 6846
Fax : (852) 2277 6565
Email : businessenquiry@phillip.com.hk

Enquiry & Support
Branches
The Complaint Procedures
About Us
Phillip Securities Group
Join Us
Phillip Network
Phillip Post
Phillip Channel
Latest Promotion
新闻稿
E-Check
Login
Investor Notes
Free Subscribe
Contact Us