Shandong Gold (600547): 1Q19 performance exceeded expectations; benefited from rising gold prices

Shandong Gold (600547): 1Q19 performance exceeded expectations; benefited from rising gold prices

Q1 2019 results exceeded expectations Shandong Gold announced Q1 2019 results: operating income of US $ 10.6 billion, a year-on-year decrease of 25% and a month-on-month decrease of 39%. Net profit attributable to the parent company3.

700 million, an increase of 5 every year.

5%, an increase 无锡夜网 of 2 from the previous month.

5x, corresponding to a relative profit of 0.

17 yuan, net profit after deduction to mother 3.

6 ‰, an annual increase of 4%, exceeding our expectations, mainly due to low operating costs.

The increase in the company’s profit in the first quarter of 19 was mainly due to the early growth of domestic gold prices.

Comments: 1) Benefit from rising gold prices at home and abroad.

The average domestic gold price in the first quarter of 19 was 285 yuan / gram, an increase of 4 per year.

4%, Comex gold price is $ 1303 / GBP, more than the previous 6.


The domestic / Comex gold prices in the first quarter of 19 increased by 3 respectively from the previous month.

9% and down 2.


2) In the first quarter of 19, the comprehensive gross profit margin increased by more than 3.

9ppt, an increase of 6ppt to 12 from the previous quarter.


3) 1Q19 business tax and additional additional 66 million yuan, mainly due to increased export duties of Hong Kong companies.

4) In the first quarter of 19, management expenses and financial expenses increased by 3 each year.

9% / 17.13 million yuan and 7.

1% / 11.62 million yuan, twice the management expense rate +1.

2ppt to 4.

3%, financial expenses rate for ten years +0.

5ppt to 1.


5) Investment income + gains from changes in fair value in the first quarter of 19 increased by 48 million yuan to 31.69 million yuan.

6) In the first quarter of 19, the proportion of minority shareholders increased by 4 percentage points to 11% each year.

7) Effective tax rate 24 in 1Q19.

5%, a decline of 3 per year.

1ppt, down 35ppt from the previous month.

Development trend Gold prices are weak in the short term.

In 2018, global mineral gold was 3,503 tons, increasing by 1 every year.

8% / + 61 tons.

Recent market expectations for the overall economic environment have improved. In the short term, the demand for safe-haven gold and the demand for asset allocation may decline, and the short-term growth space for gold prices is offset.

Earnings forecast is based on changes in assumptions such as production and 武汉夜网论坛 costs. We raise our 2019/20 earnings forecast by 4% / 4% to 0.


59 yuan.

Estimates and recommendations The company currently sustainably corresponds to February / 2019.9/2.

8 times P / B.

We maintain our Neutral rating, but raise our target price by 12% to RMB 29, corresponding to 2019/202.


7 times P / B, there is a 2% drop space compared with the previous one.

Risk gold prices fell more than expected.