SMM5 March 13: recently, Camel shares disclosed a quarterly report that the company's total operating income in the first quarter of 2020 was 1.7 billion, down 24.89% from the same period last year; its net profit was 65.264 million, down 59.2% from the same period last year; and its earnings per share was 0.08 yuan. During the reporting period, the company's gross profit margin was 20%, up 3.9 percentage points from the same period last year, and the net profit margin was 3.4%, down 3.9 percentage points from the same period last year.
Reasons for changes in performance: during the first quarter of 2020, affected by the epidemic situation of Xinguan pneumonia, Hubei Province has adopted a more strict closed isolation measures to deal with. The company's main production base is located in Hubei Province. Due to epidemic control and resulting supply chain and logistics disruptions, the company was unable to operate for more than 50 days in the first quarter, and sales of lead-acid batteries, its main products, fell 15.3 percent from a year earlier. On the one hand, the decline in operating income, on the other hand, including the wages, depreciation and financial expenses of more than 6000 employees still need to be expended and amortized, and the wage expenditure alone reached nearly 50 million yuan during the shutdown period, so it has a certain impact on the performance of the company.
With the escalation of global trade disputes in 2019 and the downward pressure on the global economy, central banks began a wave of interest rate cuts. At the same time, the meeting of the political Bureau of the CPC Central Committee stressed that at present and for some time to come, the basic trend of China's economic stability and long-term improvement has not changed, and 2020 is also the year for China to build a well-off society in an all-round way and the end of the 13th five-year Plan. Against this background, the new crown virus is raging all over the world, and how to achieve stable economic growth in China is worth looking forward to.
In the zinc market, overseas mines will increase production step by step in 2019, but the increase in domestic mine production will be repeatedly hindered. In the first quarter of 2020, zinc prices fell through the mine cost line, mine profits plummeted, and how smelters and mine profits will be distributed in 2020. can overseas mines be expected to be put into production under the disturbance of the epidemic situation? In addition, the output of domestic refining zinc smelters broke through the bottleneck in 2019 and refreshed the all-time high. Under the disturbance of the supply end of zinc mines in 2020, can the capacity utilization rate of smelters maintain a high load? Whether the infrastructure investment under the tone of "stabilizing the economy" in 2020 can exceed the expected performance, whether the super-seasonal performance of the galvanizing industry can still be expected, and whether the contradiction between supply and demand of zinc may reverse in 2020, paying attention to and laying out structural opportunities is another option. Can zinc prices pick up in 2020?
In view of the above topics, SMM will invite industry bigwigs, industry professionals, upstream and downstream enterprises of the industry chain to hold the "2020 (15th) lead and Zinc Summit" in Changsha to discuss the current situation and problems faced by the industry, as well as future development prospects, and analyze the fundamentals and the future trend of zinc prices.
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