Chapter 290: Valuation Depression

This shows that Jin Changxing really has two brushes, and he is not a person who can only play with words.

When Xue Chenzhi first took office in Jin Changxing, he was still unconvinced by him, and now that disbelief has disappeared secretly. He himself weighed that if he was the chairman, he might not dare to make such a judgment and the decision to buy a new mine.

And Huang Hongliang's idea is more pragmatic, compared with Liu Zhongzhou's current downfall, he is exhausted by debt, he knows that he has a few pounds and a few taels, at present, with his own level, it is already good to be the general manager of the sales company within the Southern Group, and then up, it will be a little difficult, don't be careless and fall to Liu Zhongzhou's step of the field.

Now his biggest thought is to make money to pay off his debts quickly, so as long as the person above can take him to make money, he doesn't care whether this person is a cat or a dog.

Jin Changxing's recent beautiful performance made Huang Hongliang a little impressed with him, if Jin Changxing's plans are all implemented, the scale of the Southern Group will definitely expand in the future, and the sales business of his own sales company will also grow exponentially, and making money should be just around the corner.

His current attitude towards Jin Changxing can be said to be the only one who looks forward to Jin Changxing, and the degree to which he flatters Jin Changxing is as good as the extent to which he flattered Liu Zhongzhou before.

Li Xin, who was in a state of confusion not long ago and didn't know where to invest his money, is now busy in full swing. Wang Minghui accidentally mentioned this topic, which aroused his vigilance, and he immediately cheered up 12 points like a hound smelling the smell of its prey, and followed it all the way.

In the past few days, he has been carefully studying the stocks of non-ferrous metal companies, and the more carefully he compares, the more he realizes that the company of Western Copper is not simple.

From the overall pattern of the industry, copper prices have risen more than 5 times in a few years, even after deducting the factors of a significant increase in production costs in the same period, a substantial increase in the profits of copper smelting enterprises should be foreseeable, or that the performance of these production enterprises should be greatly improved on the basis of the previous in the future.

Western Copper is one of the top non-ferrous metal smelting enterprises in China, and its copper output has always been among the best, as the industry leader, they should be the most direct beneficiaries of this round of copper price increases.

Li Xin took his own Southern Group as a comparison, even though the Southern Group had huge losses caused by short futures orders last year, its annual profits still increased by a large margin year-on-year. Not to mention this year, copper prices have risen more sharply than last year, and sales profits have increased significantly compared to last year.

Western Copper, which is much larger than the Southern Group, has seen remarkable growth, including one of the indicators that caught Li Xin's attention: the company's earnings per share in the first half of last year were nearly double the earnings per share of the year before.

What makes Li Xin anxious is that the company's annual report has not yet come out, and there is no way to know the profit growth rate for the whole of last year.

In order to further analyze and predict this indicator, Li Xin downloaded all the futures price data in the past few years, and summarized and analyzed them one by one from trading volume to price.

From a series of data comparisons, he found some unusual places: the average transaction price of the main futures copper contract in the previous year was roughly 26,000 yuan, and the average transaction price last year was roughly 32,000 yuan, an increase of about 23%.

With a growth rate of about 23% in product prices, the profit per share of Western Copper in the first half of last year was nearly twice that of the previous year, and the increase in copper prices in the second half of last year was significantly higher than that of the first half of the year. On this basis, it is reasonable to speculate that the profit for the whole of last year increased fourfold year-on-year.

Because the price increase of products here is calculated by the increase in the average price of futures transactions, in fact, Li Xin learned from the example of the Southern Group that the sales price of copper in the market has risen by far more than 23%, that is to say, it is not an exaggeration to predict that the profit growth of Western Copper last year was four times that of the same period last year.

From here, it can be seen that due to the rise in copper prices, the profit growth brought by the western copper industry is extremely obvious.

So far this year, the average transaction price of the main futures copper contract is roughly 62,000 yuan, even if the price will be corrected in the second half of the year, but it is very possible that the average transaction price for the whole year is not less than 60,000 yuan.

This price is about 87% higher than the average transaction price of 32,000 yuan last year, and such a huge increase in copper prices this year will bring much growth to the performance growth of Western Copper this year and beyond?

Taking last year's data as a comparison, the increase in copper prices this year is more than three times that of the same period last year, so the profit growth rate of Western Copper this year should not be low. Last year's profit increased fourfold year-on-year, and this year, considering the change in the profit base, it should not be a luxury to expect a two-fold year-on-year increase in profit.

With such clear growth expectations, it's only natural for stock prices to rise.

However, from the perspective of stock price changes, since the listing of Western Copper eight years ago, only the second year after listing has reached a high of 21.49 yuan.

Since then, from five years ago until December last year, the stock price has been fluctuating in the range of 3 to 6 yuan, which can be said to be in a long-term downturn.

After January this year, stimulated by the sharp rise in copper prices, the stock price rose all the way from 4.23 yuan.

In the process of futures prices rising sharply after May Day, its stock price also rose for two consecutive days, reaching a recent high of 11.28 yuan, and the current stock price is hovering around 9 yuan.

The stock rose from 4.23 yuan to the current 9 yuan, an increase of 113% in half a year, although the short-term increase is not small, but Li Xin feels that compared with the increase in copper prices of more than 5 times in 3 years, such an increase may not be anything at all.

It is particularly noteworthy that the price of the stock has been depressed for a long time, and the rapid rise has only been a matter of nearly half a year. Looking at the time period when the stock price is rising, the stock price rise has seriously lagged behind the rise in copper prices.

Seeing this, Li Xin almost couldn't believe his eyes: No, such a stock is only more than nine yuan? Did he miss any important information about this company? Otherwise, how could this be!

With such a question, he did his best to collect the relevant information of Western Copper, and after reading it, he still came to a conclusion: the company's stock is seriously undervalued, compared with the sharp rise in the price of its products, the stock price is a valuation depression, and there should be a lot of room for profit when buying!

The reason why Li Xin dares to think like this is because he has the experience of making profits on Rainbow Electric stocks.

Western Copper and Rainbow Electric have a very similar place, that is, their products have a good market in the market, and the company has an irreplaceable leading role in the industry. Once the stock of such a company is discovered by the market, the stock price will definitely rise sharply under the pursuit of funds from all parties.

Even compared with the rainbow electrical appliances he once operated, Li Xin also felt that the shares of Western Copper had obvious advantages.

Li Xin thought, this could be the next feast!

Having missed the rise in copper prices in the second half of the period, we must not miss the rise in the share price of Western Copper. There is a copper price increase of more than 5 times in a few years, and this glass of wine is at the bottom, and there is enough margin of safety to buy this stock near the current 9 yuan.

In fact, I have seen clearly the fundamental changes in the macro economy to the huge pull effect on the rise in copper prices, but I lost my way in the long process of holding a position, and did not stick to the end, and the futures price felt high when it was 60,000 yuan, and I did not dare to go long, and missed this wave of market.

Now with the sharp rise in copper prices on the stock price to dynamically look at the share price of 9 yuan in the western copper industry, although it has doubled in half a year, but from the perspective of development, it is likely that the rise of the stock has just begun.

As soon as he said it, Li Xin immediately transferred almost all the funds in the futures account back to the stock account, leaving only five million yuan there.

When Li Xin withdrew the funds, Yuan Jie had already gone home to recuperate and was about to give birth, so she didn't know anything about it.

In the following days, as the futures price fluctuated back and forth, the shares of Western Copper also gradually recovered from the recent high, and Li Xin gradually bought 8 million shares in batches during this time, with an average price of 8.75 yuan.

After everything settled, Li Xin called Wang Minghui: "Lao Wang, did you buy the stock you told you last time?"

Wang Minghui didn't react for a while, buying stocks of non-ferrous metals such as companies may make money, this topic is still brought up by him, but he himself didn't take it too seriously, Li Xin told him that day that the stock of the company Western Copper is good, and after he heard it, he also went out in the left ear and the right ear, so he asked Li Xin: "Which stock are you talking about?"

Li Xin said: "You noble people are so forgetful, or you reminded me to buy non-ferrous metal stocks." ”

Wang Minghui then remembered and said, "You're talking about the western copper industry, aren't you?"

Li Xin said: "Yes, did you buy it?"

Wang Minghui said: "No, what about you?"

Li Xin said: "I have already bought it, and I suggest you buy some too." ”

Wang Minghui asked, "How many shares did you buy?"

Li Xin smiled and said, "This is kept secret for the time being." ”

Wang Minghui said: "Don't fool me, I'm not as rich as you!"

Li Xin was a little unhappy when she heard this, and said, "What do you think? What am I fooling you for, don't treat kindness as a donkey's liver and lungs!"

Wang Minghui said: "How many yuan is its stock price now? As he spoke, he pulled up the stock chart of Western Copper on his computer.

Li Xin said: "It's less than nine yuan now. ”

Wang Minghui looked at the trend chart and said: "Wow! The stock price has doubled in the past few months, and you still dare to buy it?"