On the evening of June 30, a number of A-share listed companies ushered in good news!
Zangge Mining announced that night that the joint-stock company Julong Copper has made a major breakthrough in prospecting and increasing reserves, and compared with the previous filing (2022), Julong Copper's new copper metal resources reached 14.726 million tons. At present, Zangge Mining holds a 30.78% stake in Julong Copper. Zijin Mining, the controlling shareholder of Julong Copper, also disclosed the above good news on the evening of the 28th. It is understood that Zijin Mining holds a 50.10% stake in Julong Copper, which had a revenue of more than 10.2 billion yuan last year.
In addition, on the evening of the 30th, in order to boost market confidence, a number of listed companies launched plans to increase their holdings or repurchase them. Yatai Group disclosed that the controlling shareholder Changchun State-owned Assets Supervision and Administration Commission designated Changfa Group to increase its shareholding in the company by 150 million yuan to 300 million yuan, and the controlling shareholder of Palm Co., Ltd. intends to increase its holdings by 20 million shares to 23.2 million shares. At the same time, the controlling shareholder of Palm Shares proposed that the listed company repurchase shares for 50 million yuan to 100 million yuan for cancellation and equity incentives; Shuoshi Biotech plans to repurchase shares with 150 million yuan to 300 million yuan, which will be used to cancel and reduce the registered capital, and Pingtan Development has also disclosed a share repurchase plan, with a proposed repurchase amount of not less than 80 million yuan and no more than 160 million yuan.
It is worth noting that over the weekend, the rare earth industry also ushered in good news - the "Rare Earth Management Regulations" was announced, which will come into force on October 1, 2024. Some brokerage analysts pointed out that the current domestic quota is concentrated in the north of the rare earth, China rare earth group, the introduction of the document means that the rare earth industry collectivization, standardized development in the form of regulations, industry supply concentration is expected to continue to increase. In the second quarter, the supply and demand margins of the rare earth industry improved, and we are optimistic about the continued recovery of prices and the repair of sector valuations.
As for the trend of the A-share market, the latest research report of CITIC Securities pointed out that looking forward to the third quarter, policy signals, price signals and external signals are expected to become clearer, and the market inflection point will appear.
Critical Breakthrough
Zangge Mining announced on the evening of June 30 that the shareholding company Julong Copper has made a major breakthrough in prospecting and increasing reserves.
Zangge Mining said that the company recently learned that according to the mineral resource reserve review opinion issued by the Tibet Autonomous Region Land and Mineral Rights Trading and Resource Reserve Review Center, the company's shareholding company Julong Copper has added 14.726 million tons of copper metal resources compared with the previous filing (2022).
After the completion of the filing, the cumulative identified copper metal resources in the Julong Copper Mining Area reached 25.88 million tons, which is the largest copper mine in China at present. In addition to the above-mentioned new copper metal resources, Julong Copper Mining Area has also added 1.002 million tons of molybdenum metal and 8,157 tons of silver metal in the associated resources.
In 2023, Julong Copper will mine and beneficiate 31.27 million tons of ore (including 1.25 million tons of Zhibula ore section), and realize 154,400 tons of copper, 5,596 tons of molybdenum, 633 kilograms of gold, and 105.7 tons of silver. In 2023, Zangge Mining will obtain investment income of 1.296 billion yuan, accounting for 37.90% of the company's net profit attributable to the parent company, and the investment income will increase by 571 million yuan, or 78.81%, year-on-year.
According to public information, in 2023, Julong Copper will produce 154,000 tons of copper, achieve revenue of 10.235 billion yuan, and net profit of 4.211 billion yuan.
Zangge Mining said that at present, the second phase of the Julong Copper Mine reconstruction and expansion project has been approved by relevant departments, and the project construction has been fully launched, and trial production is expected to be realized in the first quarter of 2026. After the completion of the second phase of the Julong project, the annual ore mining and dressing scale will increase from 45 million tons to more than 110 million tons (350,000 tons per day), the annual output of mineral copper will increase from 154,400 tons in 2023 to about 300,000 tons - 350,000 tons, the annual output of mineral molybdenum will increase from 5,000 tons in 2023 to about 13,000 tons, and the annual output of mineral silver will increase from 100 tons to 230 tons.
Previously, on the evening of June 28, Zijin Mining also disclosed the above announcement. It is understood that Zijin Mining acquired a 50.1% stake in Julong Copper in 2020 and obtained a controlling stake in Tibet Julong Copper Mine.
Zijin Mining said that the company's research and design unit is studying the completion of the second phase of the Julong Copper Mine construction, further planning and implementation of the third phase of the project, if the project is approved by the relevant government departments, the final mining elevation of the third phase of the project will be reduced from 4,452 meters in the second phase to 4,090 meters, and the copper reserves available for development within the boundary will exceed 20 million tons, which is expected to achieve an annual mining and dressing of about 200 million tons of ore, becoming the world's largest copper mine with an annual output of about 600,000 tons of copper.
Rare earth management regulations were issued
According to Xinhua News Agency, the "Regulations on the Administration of Rare Earths" has been adopted at the 31st executive meeting of the State Council on April 26, officially announced on June 29, and will come into force on October 1, 2024.
The regulations take promoting the high-quality development of the rare earth industry as the overall idea, and the main contents include strengthening the protection of rare earth resources, improving the rare earth management system, promoting the high-quality development of the rare earth industry, and improving the supervision system of the whole rare earth industry chain.
The regulations make it clear that the state implements a unified plan for the development of the rare earth industry, encourages and supports the research and development and application of new technologies, new processes, new products, new materials and new equipment in the rare earth industry, continuously improves the level of development and utilization of rare earth resources, and promotes the high-end, intelligent and green development of the rare earth industry. The state encourages and supports enterprises to use advanced and applicable technologies and processes to make comprehensive utilization of rare earth secondary resources. Enterprises engaged in the comprehensive utilization of rare earth minerals shall not use rare earth mineral products as raw materials to engage in production activities.
Guotai Junan Nonferrous Metals Team Yu Jiayi, Ning Ziwei and others pointed out that the current domestic quota is concentrated in the North Rare Earth and China Rare Earth Group, and the issuance of the above documents means that the collectivization and standardized development of the rare earth industry is determined in the form of regulations, and the concentration of industry supply is expected to continue to increase. The brokerage said that since the second quarter of this year, due to the slowdown in quota growth and the strong willingness of manufacturers to raise prices after the sharp price drop, the supply margin has tightened, and the industrial chain has continued to go to the warehouse; On the follow-up demand side, there is also a catalyst for the purchase of new energy vehicles/wind power in the peak season from July to August, and the price recovery is expected to continue. The valuation of the core target has reached a low level, and the rare earth sector is expected to usher in a valuation repair opportunity ahead of the price.
Chen Xiaorong, an analyst at Ping An Securities, said that the regulations have made relevant provisions in terms of rare earth mining, smelting separation, total regulation and control system, comprehensive utilization, product traceability and circulation management. According to the USGS and the Neodymium Magnets Supply Chain Report - Final, the continent's rare earth reserves account for more than 60%, the global production capacity of separation and smelting accounts for about 90%, and the manufacturing of magnet alloys accounts for more than 90%, forming an absolute resource advantage and industrial chain advantage in the world. The promulgation of the above-mentioned regulations clarifies the status of rare earth strategic resources, which is expected to strengthen the order of the rare earth industry, further enhance the protection and efficient utilization of rare earth resources in the mainland, and enhance the added value of the rare earth industry chain.
Increase in holdings and expand the repurchase team
On the evening of June 30, a number of A-share listed companies such as Yatai Group, Palm Shares, Shuoshi Biotechnology, and Pingtan Development joined the team of increasing holdings and repurchases.
Yatai Group disclosed that night that based on the company's operating fundamentals and future development expectations, Changchun State-owned Assets Supervision and Administration Commission (the controlling shareholder of Yatai Group) designated Changfa Group, which performs its responsibilities as an investor, as the main body, with its own funds, through centralized bidding transactions to increase the company's shares, with an increase of not less than 150 million yuan and no more than 300 million yuan.
The price of the above-mentioned shareholding increase plan is no more than 1.62 yuan per share reported by the company in the first quarter of 2024, and the implementation period is 6 months from July 1. In addition, Yatai Group also received a letter of commitment from its shareholder, Jinta Investment, which promised not to reduce its shareholding in the company in any way within 12 months from July 1, 2024 based on its confidence in the company's future development prospects and the recognition of its long-term investment value.
In the secondary market, since the beginning of the year, the share price of Yatai Group has fallen by more than 56%, and the latest stock price is 0.85 yuan per share, and the market value has shrunk to 2.8 billion yuan. A few days ago, on the evening of June 26, Yatai Group also disclosed a share repurchase plan, and the company intends to use its own funds to repurchase no less than 30 million yuan and no more than 50 million yuan.
Palm announced on the evening of June 30 that based on the confidence in the company's future development and the recognition of long-term investment value, the company's controlling shareholder, Henan Yuzi Affordable Housing Management and Operation Co., Ltd. (hereinafter referred to as "Yuzi Affordable Housing"), plans to increase its holdings of the company's shares within 6 months, and the number of shares to be increased is not less than 20 million shares and not more than 23.2 million shares. The price to be increased is: the closing price on the day of the announcement of palm shares is the benchmark price, and the upper limit of the increase price does not exceed 200% of the benchmark price. At the same time, Yuzi Affordable Housing proposed that Palm Shares repurchase shares for 50 million yuan to 100 million yuan for cancellation and equity incentives.
On the evening of the same day, Shuoshi Biotech, a listed company on the Science and Technology Innovation Board, said that the company intends to repurchase shares for cancellation and reduction of registered capital in accordance with the law. According to the share repurchase plan disclosed by Shuoshi Biotech, the total amount of funds to be repurchased by Shuoshi Biotech this time is not less than 150 million yuan and not more than 300 million yuan, and the price of repurchased shares does not exceed 90 yuan per share. Since the beginning of this year, the company's share price has risen by nearly 24%, with the latest market value of 4 billion yuan and the stock price at 67.62 yuan per share.
Pingtan Development also disclosed the share repurchase plan, the company intends to repurchase the amount of not less than 80 million yuan, not more than 160 million yuan, the upper limit of the repurchase price is not more than 2.52 yuan per share. The repurchased shares will be used to maintain the company's value and shareholders' equity, and will be sold within the specified period in accordance with the relevant repurchase rules and regulatory guidelines; and the implementation of employee stock ownership plans or equity incentive plans in the later stage. In the secondary market, the share price of Pingtan Development has fallen by more than 48% since the beginning of this year, with the latest market value of 2.5 billion yuan and the stock price of 1.3 yuan per share.
In addition, on the evening of June 28, Boss Software, Dezhan Health, Xinhu Zhongbao, Chitianhua and other companies also disclosed their buyback or shareholding plans. Among them, Boss Software plans to repurchase shares with 50 million yuan to 100 million yuan; Kaidi Investment, the controlling shareholder of Dezhan Health, proposed that the listed company repurchase shares for 200 million to 300 million yuan, all of which were used for cancellation. (Source: Brokerage China)