China MCC Steel carbon Neutralization hydrogen Metallurgy benefits most Nickel, Cobalt, Copper and Electronic Polycrystalline Silicon to be reevaluated

To maintain an increase in holdings, 2021H1 performance increased by 38% more than expected, raising the forecast company's EPS for 2021-23 to 0.46, 0.53, 0.61 (formerly 0.44, 0.50, 0.57), with a growth rate of 21, 16, 16. 5%. The Nickel-Cobalt-Copper / Electronic Polysilicon of Nonferrous Design Institute needs to be revalued and the target price will be raised to 6.82 yuan for 2021 15 times PE,.

The results in the first half of the year exceeded expectations: revenue of 251 billion increased by 39%, net profit of 4.9 billion increased by 38%, and newly signed 615.1 billion yuan increased by 32%. The weighted average ROE5.6% increased by 1.5 percentage points. R & D expenditure increased by 46% in 6 billion. Rimu Nickel-Cobalt / Duda lead-Zinc / Shandak Copper made a total profit of 1.1 billion yuan in the first half of the year, a year-on-year turnround and profit of 1.1 billion yuan, 1.5 times higher than in 2020. Sales of 20, 000 tons of nickel / 1789 tons of cobalt increased by 44%, 53%, revenue doubled, and profit reversed and increased by 820 million yuan over the same period last year.

Lead the steel industry to achieve intelligent / green / low-carbon development, steel hydrogen metallurgy carbon neutralization is the most beneficial. The company is the world's largest metallurgical construction and operation service provider, accounting for 90% of metallurgical domestic / 60% global share, a total of 42 patents related to hydrometallurgical iron. China Metallurgical Sadie put forward three technical paths of hydrogen-rich reduction of low-carbon blast furnace / hydrogen-based shaft furnace direct reduction / hydrogen-based smelting reduction based on high efficiency pre-reduction. MCC Jingcheng has completed the world's first plant based on dry gas refining technology and based on hydrogen-rich gas hydrogen energy utilization technology and engineering development. The overall design of the world's first hydrogen metallurgy demonstration project is expected to be put into production in May 2022.

Nickel, cobalt, copper and electronic polysilicon of the strongest non-ferrous design institute need to be reassessed, and the construction of a school building in Afghanistan has been completed. The mining industry has mastered the leading core technology / the strongest non-ferrous design institute / salt lake lithium extraction technology is mature. Belt and Road Initiative's main force to assist Afghanistan with the most complete education function teaching building has been completed. Afghanistan has world-class super-large copper reserves of 11.08 million tons and Rimu nickel metal reserves of 1.32 million tons. Breakthrough zone melting grade electronic polysilicon technology import substitution. Newly signed Xingang Dacheng 100MW photovoltaic power station / Zhanjiang factory roof photovoltaic.

Risk hints: macroeconomic policy risks, repeated overseas epidemics.