Tin Industry Shares (000960): Leading Global Tin Industry Benefits High Tin Prices

Tin Industry Shares (000960): Leading Global Tin Industry Benefits High Tin Prices
This report reads: The tin industry will maintain a tight balance between supply and demand, tin prices will remain high, and tin shares will benefit. For the first time, they will be given a 南京桑拿论坛 cautious overweight rating.  Investment Highlights: The first coverage gives a cautious overweight rating.As a global tin industry leader, tin shares have pricing power in the tin industry. Due to the shrinking supply in Myanmar, the tin industry will maintain a tight balance between supply and demand, and tin prices will remain high.Based on the comprehensive PE and PB method, the target price is 11 for the first time.2 yuan, forecast company 2019-2021 EPS 0.40/0.42/0.49 yuan, corresponding to PE 28/27/23 in 2019-2021, with a space of 11%. The first coverage is given a prudent overweight rating.  The tin industry leader continues to grow.From 2005 to the present, the tin industry has the world’s largest production and sales of tin products. In 2018, the output of tin products was about 8 tons, with a 44% share in China and a 20% global 北京夜网 share.In 2016, it will increase the acquisition of high-quality assets Hualian Zinc and Tin, which will increase the company’s profits and enrich the company’s profit sources.Hualian Zinc has successively produced 10 zinc per year, and 60 tons of indium technical transformation projects have continued to advance, ensuring the company’s continued growth.  Supply remains tight and tin prices are expected to remain high.China, Indonesia, and Myanmar account for more than 70% of the world ‘s total tin concentrate output. Burma ‘s tin ore mining has gradually been transformed into underground replenishment and has been incorporated into the replacement of Chinese tin concentrate tastes. As environmental inspections have become more stringent, Indonesia ‘s export policy has disrupted supply restrictions.In the future, the supply increase is not large, and the supply side is expected to maintain a tight state; the demand side benefits from the growth in global semiconductor sales, and the demand for tin solder remains strong.We judge that tin prices will strive to remain high in the future.  Catalyst: Rising tin prices.  Risk reminder: the risk of tin-zinc metal price fluctuations, the risk of safe production