Foreign shareholder relay reduction of Western mining into "ATM machine"

A relay race, sponsored by foreign shareholders, is being staged in the Western Mining Industry (601168.SH). Following the founder's shareholder, Goldman Sachs Strategic Investments (Delaware) L.L.C, after the ban on restricted stocks, Newmargin Mining Co., Limited ( Hereinafter said: Newmargin and Shanghai Joint Venture Investment Co., Ltd. (Shanghai), and Newmargin constitute a consistent action relationship, then took over Goldman's reduction "baton."　　In the eyes of foreign shareholders, Western mining has become a "cash machine". October 14, the Western mining issued a notice, Newmargin, Shanghai, respectively, March 17, 2009 to October 12, 2010, April 24, 2009 to October 12, 2010, through the SSE bidding trading system to reduce the company's stock 111.33 million shares,　　8.06 million shares, totaling 119.39 million shares, account for 5.0101% of the total issued shares of the company.　　After the reduction, Newmargin and Shanghai joint venture still hold 72.91 million shares of the company's shares, accounting for the total number of shares issued 3.0596%. It is worth mentioning that Newmargin chose to "withdraw" the timing also mastered just right, chose the Western mining share price rising time to reduce. If in this year from July 23 to October 12 reduction, the Western mining corresponding stock price reduction interval is located between 10.38 Yuan and 16.09 yuan, the stage rises up to 55%. In the meantime Newmargin and Shanghai joint Create total reduction of 61.95 million shares.　　According to this calculation, foreign shareholders in this period the smallest reduction in market value and the largest reduction in market value of up to 643.041 million yuan and 996.7755 million yuan respectively. Reduction relay according to the exchange of public data, the two shareholders held shares from the beginning of the ban on the reduction in succession. The second reduction of Newmargin and Shanghai joint venture took place in July this year.　　Western Mining July 26 announced that the company's shareholders Newmargin and Shanghai, respectively, October 22, 2009 to July 22, 2010, April 24, 2009 to July 22, 2010 A total of 57.44 million shares of the company's shares, accounting for the total number of shares issued 2.41%. Newmargin's first reduction was last August.　　August 6, 2009, the Western Mining industry bulletin said that from March 2009 to August, the company's founder shareholder Newmargin a total of 15.71 million shares of the company, and August 2009 is exactly the company's share price last year's high.　　Up to now, for Newmargin, compared to western mining now two-tier market 17.29 yuan in the stock price, its original investment costs now amortized down is "cabbage price." 2004, WestMinistry of Mining to 3 yuan per share of the price of additional 190 million shares, the founder of its shareholders increased including Hubei Hong June Investment Co., Ltd., Dongfeng Industrial Company and Victoria Group Co., Ltd. and newmarginmining, including 9 domestic and foreign enterprises. At the 2006 annual shareholder meeting, the Western mining industry decided to increase the Capital Provident Fund to 12 shares per 10 shares, the statutory Provident fund per 10 shares to increase 3 shares, the unallocated profit per 10 shares sent Red shares 35 shares, thus Newmargin's shareholding to 134.61 million shares. After a series of dividend dividends, Newmargin's shareholding cost has fallen to about 0.3 yuan per share.　　The return on investment so far has been more than 50 times times.　　Relatively low valuations however, after the massive reduction of foreign shareholders, the western mining industry recently two-tier market share prices have been high, 14th to touch up to 17.50 yuan, the final plate up 3.59%, the share price has reached nearly a year of new highs.　　Hua Long Securities analyst Jiangjiang said, from the western mining market since the distribution of P/E, the ratio of the maximum and the minimum value of 183 times times and 18 times times respectively, the average and median value of 56 times times and 54 times times respectively. The previous six-year report revealed that the first half of 2010 reported a year-on-year growth of nearly 12 times times.　　2010 1-June, the company realized operating income of 7.822 billion yuan, an increase of 78.3%, the realization of the ownership of the parent company net profit of 581 million yuan, growth of 1174.6%, achieve basic earnings per share 0.24 yuan, an increase of 1100%.　　It is worth mentioning that, benefiting from a sharp rise in basic metal prices in the first half of the year, the company's gross profit margin with a significant improvement over the same period, the overall gross margin increased 6% to 13.2%. Jiangjiang said that from the company's 2010 major product output compared with 2009, it can be seen that the company's output increased this year mainly from the increase in copper production.　　China is a consumer of copper, as China and the rest of the world accelerate the pace of economic recovery, the future copper prices are expected to remain high volatility, the company's future earnings growth depends mainly on the growth of copper production.　　However, the first Venture research institute researcher Ching said that the western mining industry for three consecutive years, the company's financial investment business fluctuations are large, investors should arouse high concern. In the first half of this year, the company hedging is more successful, the period of derivative financial instruments produced by the fair value of the change in income 114.3 million, the futures value of the profit margin 31.52 million yuan, both total 148.5 million yuan. But in 2009, the company's trading-type financial assets brought losses of 185 million yuan, accounting for about 25.24% of the company's net profit before the capital gains.