Baotou Steel, the annual results are expected to turn 12 times times the brokerage look high to 150 yuan

NetEase Finance October 28 News of the Super cattle in August, Baotou Steel rare earths 27th issued three quarterly, three quarter of Baotou Steel to achieve net profit of 250 million yuan, the year-on-year increase of 368.67%, the first three quarters to achieve net profit of 604 million yuan. Earnings per share of 0.749 yuan.　　At the same time, Baotou Steel estimated annual net profit growth of 1200%.　　Baotou Steel, said the rare earth market in 2010 to maintain a strong recovery momentum, product prices continue to rise, the industry boom significantly rebound; at the same time, the company vigorously promote the reduction of this increase in efficiency, increase market operations, the level of profitability significantly increased. Recently, the country has introduced a series of policies to protect Rare-earth mining and export restrictions, to stimulate the rare earth industry listed companies soared, Baotou Steel since the start of August, the share price has been successfully doubled, from the three quarterly release of shareholder access, retail investors have made a big increase, including the most cattle retail Wang Sufang into the top ten circulating shareholders, Total shareholding of 3.389 million shares, Chengbio held 4.42 million shares, Dong Rongting two-quarter holding 3.9635 million shares, three-quarter positions 2.77 million shares, the number of shares reached 6.733 million shares, located in Baotou Steel, the fourth largest circulating stock shareholders.　　Institutions have been to lighten up, China's advantage growth to lighten nearly 4 million shares. Although share prices have risen by more than 100% in the past few months and are now close to 100 times times earnings, the research report, released today, argues that the rare earth demand for rare earths as a leading enterprise of the Rare-earth plate is expected to be in short supply in the future by new energy vehicles and wind turbines, with reasonable valuations　　Raise the target price to 150 yuan. The report said that the Baotou rare Earth from 2008 to integrate rare Earth enterprises, the 2008 three to date, the company's income, profitability and rare earth oxides price regression analysis, found that the positive correlation between income and price is strong. According to estimates, rare earth oxides (REO, excluding taxes) price per increase of 10,000 yuan/ton, income growth of 1.2 billion yuan, attributable to the parent company's profit growth of 370 million yuan, three quarters of rare earth oxides (REO, excluding taxes) price of 76,000 yuan/ton to calculate, the price per increase of 10% per share of earnings can be increased by 0.36 yuan. It is estimated that Baotou Steel's 2011 and 2012-year income is 8.4 billion and 12 billion yuan respectively, the earnings per share is 1.72 yuan and 2.48 yuan.　　The corresponding P/E ratio is 54 and 38 times times. The big increase in the performance of Baotou Steel this year is no suspense, the focus of future performance growth can support such a high valuation?　　Due to strict control of rare earth mining, the annual production quota growth is limited, and no new rare earth mining permits before June 2011, so the foreseeable future 1-2 years, the production of rare earths will not be significantly increased, and its performance growth is mainly from the growth of rare earth prices. Yuan Securities that 2001 the largest Rare-earth ore in the United States-Mount Timpas mine to stop mining, a stop is nearly ten years, the production of rare earth oxides price of about 24000 U.S. dollars/ton (FOB), to comparable calculation, equivalent to today's 35384 U.S. dollars/ton, that is 237076 yuan/ton, considering 25% tariff and transportation cost, namely the domestic rare earth oxide price reaches 200,000 yuan/ton (including the tax price) above, the US Mount Timpas mine only then restores the production the power, at present less than 90,000 yuan/ton price, the future domestic rare earth oxide price also has 120% rise space. And it takes at least six months to a year for mines to be ready for production to be produced.