aluation and investment advice

Growth: tungsten carbide inserts industry will be the main source of profit growth in recent years - through the company's three main business analysis, we believe that: Molybdenum prices of related products uncertainties; precious resource expansion is opportunity-oriented, deterministic unknown; only promising tungsten prices , and the company intends to raise production of tungsten industry chain can be huge, with nearly 33 more than two billion tungsten deep processing projects put into operation, the company will bring new profit growth point.Valuation and investment advice: issue price below fair value, profit space - from the relative valuation, AH premium valuation multiples of two angle value analysis of the company: Company A shares for the shares of gold molybdenum comparable enterprises in Xiamen Tungsten, Tungsten chapter, in accordance with the PB valuation of 13.73 yuan, 12.66 yuan valuation in accordance with PE. AH share premium of the Company in accordance with the situation reasonably priced company projections of 4.22 million. Considering the difference in valuation of AH shares and A shares of small metal and base metal valuation differences, we conservatively estimate the company a reasonable price is 6.58 yuan。tungsten ore mining aggregates control measures have yielded tungsten ore pricing, the price of tungsten long-term bullish, the company is expected to continue to benefit. In addition, the company plans to invest nearly 33 billion yuan into the tungsten processing sectors, despite the lack of core technology, our company projected tungsten processing margin is not high, but the company has the resources, on the one hand can form synergies between businesses, on the other hand You can also improve the industrial chain, to avoid excessive dependence on downstream.