Investigation on the Shannai shares: The value geometry of mining right

Since the wind of the rare earths from Ganzhou ignited a A-share investment enthusiasm, its brother "rare Earths" concept was recently vacated. Just acquired the upstream magnesite mining rights of the Shannai shares also occupy the current round of speculation, geographical location, people and.　　The shares in a week pulled out four trading boards, from March 11 to date, the share price has risen 57.68%.　　In fact, the Rare-earth effect means that stocks with scarce resources may face investment opportunities in the context of a shortage of industrial raw material supplies and even exhaustion.　　In this round of speculation, in addition to gather in Beijing, Shenzhen, southwest, Zhejiang, Shanghai and other aggressive style of the hot money, more bodies appear frequently.　　Who is involved in the hype? Since the middle of March, the long-term trend of Shannai shares sudden continuous volume pulled up. After a short period of 12 trading days, the share price was pulled up from 10.61 to 17.36 Yuan, the highest rose to 63.31%.　　During this period, the same as the production of Refractories, Rui Tai Technology and Beijing Lear only Rose 3.2% and fell by 4.39% respectively. In addition, the rally in Shannai shares has been far ahead of other stocks that have been given the concept of "rare earths".　　In the meantime, engaged in attapulgite production of the Nest East stake up to 27.59%, with kaolin mining rights of the Sea printing shares up to 18.84%.　　From the trend of Shannai shares, its share price in a trading week after March 11 a tentative rise, and the official launch was on March 22, in the five trading days thereafter, the shares rose by 35.63%. To ignite the market for Shannai shares of the long enthusiasm is the company released on the evening of March 17, a purchase of magnesite company announcement.　　The announcement said that the Shannai shares in total 100,019,016.21 Yuan to acquire Haicheng Mining Co., Ltd. (hereinafter referred to as "Lin Li Mining") 100% equity, the main assets of Lin Li Mining is the Haicheng Venus Welfare Refractory factory (integrated magnesite Mountain) mining rights.　　Shannai shares said that the acquisition is an important part of the company's resource strategy, the initial establishment of the company's magnesium raw materials base for the stability of refractory raw materials supply and raw material quality will play an important role. In fact, the hot money and institutions for the company to buy magnesite good early layout. March 17 Day, Shannai shares rose 6.08%, turnover rate as high as 24.47%, and the same time prev close fell 0.33%.　　According to the disclosure of SSE transactions that night, Citic Wantong Securities Binzhou five Yellow River sales department and Qilu Securities Binzhou Bohai Seven Road sales department two Shandong hot money became the main pushing hand, the two total buy 9.3824 million shares. March 18, with good cash, the company's shares fell 5.25% to adjust.　　An organization to buy a large amount of 2.9948 million yuan, sitting in the buyer's head. Since then, to Beijing, Shenzhen, southwest, Zhejiang, Shanghai as the representative of the floating capital synergy agencies take turns, speculation reached climax. In the 7 trading days from March 23 to March 31,Shannai shares total turnover rate of up to 267.93%, speculation, the main force constantly change.　　According to the reporter statistics, since the first gun in Shandong hot money, a total of 58 business departments in Shenzhen stock disclosed in the transaction list, of which more than 10 sales of the hot money actively engaged in the speculation. In addition, more than two bodies have appeared in the top five trading seats of Shannai shares.　　According to the list of shareholders in the last quarter of Shannai, there are two public offering funds, namely, 2.6333 million shares of the Fund and the Growth Fund of Warburg Xingye, which holds 868,300 shares. During this period, Shannai shares also with the market speculation moderate release positive. The company released its annual report on March 24, although in 2010, the company's net profit slightly rose 9.62%, but still throw every 10 shares to increase 3 shares to 0.8 yuan dividend scheme.　　In the same period last year, the company's net profit rose by 21.9%, and only 0.8 yuan per 10 shares. A private-equity person told reporters, "because the stock index has been fluctuating between the community, some market funds do not expect a single industry to appear, and thus to the speculation concept of cattle stocks." From the Shannai shares of the hype participants, the chips are very dispersed, the mechanism is also more frequent turnover, it should be with the stock price after the following follow the bandwagon in speculation.　　"It is noteworthy that in this speculation, has always played a rising hand-pushing securities brokerage research newspaper but appears to be some after feeling, only the creation of a securities in China on March 26 to give the recommended level of research report." "The price of mine products is the most important factor affecting the company's gross profit margin, in fact, the quality of raw materials has also slipped." At present, the domestic non-metallic mineral market is extremely irregular, the company successfully acquired the Haicheng magnesite, the integration of mineral channels opened, the future gross margin is expected to improve.　　"China creative Securities building Materials industry analyst in the recommendation report, said.　　March 29, a company insider said to reporters, "We are also in the Shannai shares soared after the start to pay attention to, recommended, my maintenance customers are basically in the last Friday (March 25) bought this stock."　　It is noteworthy that March 29, 30th, 31st Three trading days, the list of the top five of the seller's hot money sales, respectively, 68.9863 million yuan, 38.0372 million yuan and 26.091 million yuan, capital away from the field means obvious. And with the constant profits of the floating capital fled, the organization is expected to become the next round of speculation Shannai shares of the protagonist. March 31, the shares fell 4.56%, a large body to buy 26.6591 million yuan.　　April 1, Shannai shares rose 3.91%, the shares began to stabilise. The acquisition of magnesite at present, the increasingly scarce raw material resources have caused a negative impact on the Shannai shares. Annual report disclosed that, as one of the largest raw materials, sintered magnesia in 2010, the average purchase price rose by about 11% respectively, in addition, the quality of raw materials on the market also has a different degree of decline. Due to the upstream raw material price increase and downstream iron and steel enterprises on the prices of refractory materials squeeze, 2010, the company's gross profitRate fell 4.09% year-on-year. In fact, Shannai shares have been "gradually into the material upstream resources field, master the raw material resources" as a specific strategy for the recent strategic development.　　July 2010, the company acquired in Jiaozuo Baggy, on the surface to achieve complementary products, but actually sword refers to Jiaozuo rich bauxite resources, and is expected to further upstream raw materials extension.　　Hua Chuang Securities believes that, from the refractory international giant RHI growth path, rely on resources and market is the key.　　China currently occupies half of the world's steel production, is the largest source of magnesite reserves, Liaoning has begun to apply "two limits" to magnesite, resources are increasingly scarce. The reporter learned that the company's acquisition of mining rights of the Sea city Venus Welfare refractory plant magnesite scale in the local level.　　The acquisition report shows that as of December 31, 2010, reserves of resources of 7.2739 million tons, all for the control of the economic base reserves, the holding of recoverable reserves of 4.3647 million tons, mine annual production capacity of 200,000 tons.　　Reporter in Anshan city Sasac website to find, Anshan's magnesite resources rich, widely distributed in Haicheng, Xiuyan area, reserves 2.76 billion tons, accounting for the province's reserves of 95%, accounting for the national reserves of 79%, accounting for the world's reserves of 20%. Among them, Haicheng, Xiuyan magnesite Mountain Mining Enterprises 83, including: Sea Magnesium Plant 1, Haicheng 43, Xiuyan 39.　　And the sea Magnesium general plant and Haicheng area A total of 44 mining enterprises, the annual mining total of 7.8 million tons, of which, the annual production of more than 1 million tons of 2, annual output 100,000 tons 1 million tons of 11, annual output 50,000 tons 100,000 tons of 14, the remaining 17 are 50,000 tons below. In addition, the quality of the above magnesite output is uneven. As of December 31, 2007 Reserves Assessment Base Day mine hold (122b) resource quantity 7.3318 million tons. Which Grade I products 2.5021 million tons, Ⅱ grade products 289,900 tons, Ⅲ grade 4.4077 million tons, Ⅳ grade 132,200 tons.　　Among them, the Grade I goods accounted for the total amount of 34.13%,III class goods accounted for 60.11%. March 31, the reporter as an investor to call Shannai shares, the company Dong Secret Zhong Jianji told reporters, because the mineral magnesium content distribution is uneven, the above four levels are mainly used to measure the level of magnesium oxide, the higher the level, the better the quality of fired Magnesia.　　In general, the above four levels can be fired magnesia, for refractory production, but the quality of the finished product is different. "Since last year, magnesia prices have been rising and supply has been volatile," he said. The mining right of the company to acquire Magnesite is mainly to control the upstream resources supply, stabilize the supply of raw materials and grasp the quality of raw materials. Zhong Jianji said, "mining magnesite is mainly for self-sufficiency, but if future capacity savings, will also be based on the actual market supply." "The acquisition will help Shannai shares to the upstream resources industry, but also because of this," Yuan Zhibin, a research fellow in metallurgy, said in an interview.Acquisition is the direct acquisition of mining rights, the subsequent upstream market mineral part of the construction is also a major challenge.　　At present, the domestic refractories enterprises small and scattered, industrial concentration is not high, can not grasp the market discourse power and pricing rights, especially the raw material costs accounted for a large, upstream market disadvantages directly affect the industry's profitability.　　Because magnesium raw materials accounted for a relatively high, therefore, the contention for resources is bound to concentrate on magnesite, and Liaoning, Shandong and other rich reserves of the area must be a generous location. In addition, the company in 2009 has an annual output of 50,000 tons of renewable (aluminum) Magnesia carbon Brick project, the implementation site changes to Yingkou, Liaoning.　　Rough calculation, the production of the Haicheng magnesium ore can basically meet the Shannai shares for their own use.　　Zhong Jianji to the reporter to calculate a sum, with an annual output of 200,000 tons of magnesite, its high-temperature calcination can produce 9 to 100,000 tons of magnesia, at present Puyang Shannai, Kunming kun Steel material, Shanghai Treasure Ming, Yingkou Shannai and other subsidiaries all need Magnesia products supply, the whole group of annual required Magnesia material about 100,000.　　Since the company also needs to carry out subsequent mine construction and build a production system for burnt magnesia and mid-range Magnesia, the supply of Magnesia in this year is not yet fully self-sufficient. However, the clock also said that the heavy burning of Magnesia and mid-range Magnesia production technology in the country has been quite mature, difficult to operate, the company acquired Lin-Li Mining, is expected to continue to invest about 50 million yuan, for mining infrastructure and excavation.　　With the follow-up funds and equipment in place, the company will be in 1-2 years to complete the independent supply of Magnesia raw materials, affected by this, the future cost of raw materials is expected to reduce about 10%. Shannai shares in the acquisition report predicted that the acquisition of Magnesite project to the company's net profit contribution of not more than 3% this year, 2010 years to achieve 141 million yuan net profit, the contribution will be within 4.23 million yuan.