PDF《Investment Highlights:》

For ratings definitions and other important disclosure, refer to the Disclosure Section at the end of this report.

June 20,

2012 Company Report NEUTRAL Price Target:HK$ 1.4 Upside:+9% Price(HK$) 1.29 Shares Outstanding 2,075 Market Cap. (HK$ m) 2,677 Free float (%) 42.0

52 Week Range 1.01/ 3.04 Controlling Shareholder Wang Jing(58%) BVPS (RMB) 1.88 Asset-liability ratio (%) 28.0 Investment Highlights: ? The second largest iron ore producer in Sichuan Province. Company owns and operates six iron ore mines with total resources of 370mt and iron ore concentrates production of 2mt in 2011. ? The main mines are vanadium-bearing titanomagnetite mines. The average iron content of ore is approximately 25% and the average titanium content is approximately 10%. Iron concentrates and Titanium concentrates can be obtained through the magnetic separation and flotation processing. The

2011 revenue of iron concentrates, Titanium concentrates and iron pellets accounted for 58%, 8% and 34% of total. ? The iron ore price is relatively stable in Sichuan Province. Due to poor infrastructure in West-south region, the iron ore market in Sichuan Province is independent. In additional to strong growing prospects of pig iron production, we expected the iron ore price in Sichuan Province will be relatively stable. ? Haibaodang mine and Dashanshu section of Pingchuan mine are under exploration. The total iron ore resources will be at least 150mt, and expected to start production in end 2014. ? We initiate coverage of CHINAVTM with a NEUTRAL rating and a PT of HK$1.4. We expected FY12-14 EPS will be Rmb0.26, 0.30 and 0.36. Financial Summary Year to Dec 2010A 2011A 2012E 2013E 2014E Turnover (RMB m) 1,576 1,713 1,884 2,132 2,622 Turnover Growth (%) 45% 9% 10% 13% 23% Net Profit (RMB m)

596 613

551 624

763 Net Profit Growth (%) 62% 3% -10% 13% 22% EPS (RMB) 0.26 0.29 0.26 0.30 0.36 CFO per share(RMB) 0.415 0.330 0.467 0.440 0.561 P/E (x) 4.2 3.6 4.1 3.6 2.9 P/B (x) 0.8 0.7 0.6 0.5 0.5 Dividend per share(RMB) 0.05 0.06 0.05 0.06 0.07 Source: Bloomberg, Guosen Securities (HK) CHINAVTM(893.HK) No new capacity until

2014 Key Data Price Performance Chart Coal &

Steel Analyst:David Lam SFC CE No.: AVL286 00852-2899

3130 david.lam@guosen.com.hk 研究报告仅代表分析员个人观点,请务必阅读正文之后的免责声明.

2012 年6月20 日 公司研究 中性 目标价:HK$ 1.4 潜在涨幅:+9% 收盘价(港元) 1.29 总股本/流通股本(m) 2,075/

870 总市值/流通市值(HK$ m) 2,677/1,122

52 周最高/最低 1.01/ 3.04 控股股东 王劲 持股比例 58% 每股净资产(RMB) 1.88 资产负债率(%) 28.0 煤炭钢铁行业 分析师:林世荣 证监会中央编号: AVL286 00852-2899

3130 David.lam@guosen.com.hk 投资要点: ? 四川省第二大铁矿石生产商. 四川省是铁矿石生产大省, 其拥有丰富的铁矿石资源.公司是一家坐落于四川省凉 山州的铁矿石企业,拥有 3.7 亿吨资源量,其2011 年铁 精矿产量

222 万吨,占全省总产量约 10%. ? 公司主营产品为钒钛磁铁矿石.公司开采的矿石除了拥 有约 25%品位的铁外,还含有约 10%的钛及微量钒.通过 磁选或重选等工艺,公司可从原矿提取出铁精矿和钛精 矿出售,或把部分铁精矿加工成球团矿出售.根据

2011 年数据, 铁精矿、 钛精矿和球团矿的收入占比分别为58%、 8%、34%. ? 四川市场较为独立,该区铁矿石价格将较为平稳.基于 西南部交通极不便利,四川省一直以来就形成了一个自 给自足的市场.我们认为该区域受到全球铁矿石产能过 剩的影响相对较小,加上当地钢铁产能较快的增长,其 铁矿石价格将较为平稳. ? 多个项目处于勘探阶段, 短期难以对公司业绩产生贡献. 公司在去年签订了收购攀枝花易兴达工贸公司的协议, 预计将为公司新增至少