The company’s resource extension enjoys optimistic prospect ahead.
Capacity of mineral copper will be sharply enlarged after 2009.
Price risk of basic metals has been released.
We predict the company’s 2009-2011E EPS to be Rmb0.19, Rmb0.49 and Rmb0.78 respectively and performance will recover to grow after 2009.
Based on current share price of Rmb12.37, its 2008 P/B is 2.7x, which owns valuation advantages compared with other A-share non-ferrous integrated companies mainly due to earlier restricted shares sales; viewed from resources, the company’s estimated share price is Rmb18.3 as shown by DCF, which is comparatively low, thus “Recommended” rating is hereby given.