Main business analysis of Jinzhou Xinhualong Molybdenum Co., Ltd.

First-class enterprise in domestic molybdenum smelting, processing and trade: the company's main business is molybdenum batching, molybdenum chemical industry and molybdenum metal, among which the production capacity of molybdenum smelting ranks in the top three in China, second only to Luoyang molybdenum industry, equivalent to gold and molybdenum shares. The company's molybdenum re-export trade volume is also in a leading position in the country. However, compared with Luoyang Molybdenum Industry and Gold Molybdenum Industry, the company has an obvious gap in resources. At the same time, there is no outstanding level in deep processing, which leads to a big gap between profitability and the other two.

Listing financing seeks to transform and cover the upstream: after all the fundraising projects of the company are put into production, the self-sufficiency rate of the company's resources reaches 65,438+03%; Yanbian Mining, the holding subsidiary of the company, owns the mining right of the molybdenum-copper polymetallic mine in Shuang Shan, Antu County, and the molybdenum-copper mine area in Shuang Shan is a large-scale polymetallic mine with molybdenum and copper as the main content. Through the technical transformation project of concentrator, the annual output of molybdenum concentrate of the company is (45%)32 15 tons, and the self-sufficiency rate of resources reaches 13.33%.

The resource self-sufficiency rate is planned to reach 30% within 3-5 years: According to the company's prospectus and publicly disclosed information, the company plans to achieve 30% resource self-sufficiency rate within 3-5 years. In addition, the company's Shimadong area is under exploration, and the exploration prospect is good, which will provide a strong guarantee for the company's plan.

Molybdenum price: supply growth is determined, and demand is unknown again. At present, there is a slight surplus of molybdenum in the world, and the growth of supply side in recent years is mainly due to the China factor. The discovery of large-scale molybdenum deposits in China makes the future supply increase more certain. On the demand side, western developed countries are less dependent on China molybdenum, so it is difficult to have a substantial growth prospect. In the future, the growth of molybdenum demand in China will mainly come from the structural upgrading of domestic steel industry.

The implementation of molybdenum industry access policy will benefit the industry leader: molybdenum industry series policies will improve the industry concentration to a certain extent and reduce the negative impact of price war caused by overcapacity on the company. As a leading enterprise in molybdenum smelting and processing, the company has the opportunity to take advantage of the opportunities brought by industrial policies to further enlarge and strengthen its entire industrial chain business and finally realize business complementarity.