When the economy declines, stocks in such industries will fall first, and the decline will be the biggest, and even the P/E ratio will reach single digits. The main reason is that the economic downturn has led to a sharp reduction in the demand for basic raw materials, which will have a very adverse impact on the performance of such listed companies. In addition, when the stock market goes up, it is always too crazy; It is too scary when it falls, which leads to huge fluctuations in stock prices. When it rises, it rises very high, and when it falls, it falls very low.
000060 Zhongjin Lingnan
Main business: lead-zinc mine mining, smelting and sales.
In the first half of this year, due to the rising cost of raw materials, the prices of lead, zinc and other non-ferrous metals fell sharply, the market demand declined, and profits declined. It is difficult to change this situation in the short term. In the long run, the company's profitability is still very good, and its performance will increase substantially with the economic recovery.
Current share price: 9.60 yuan; Static P/E ratio: 6 times; The dynamic P/E ratio is estimated to be less than 10 times; The price-to-book ratio is less than 3 times.
From the growth point of view, the industry's future profitability and net profit growth rate are good, and the return on net assets is also very high (over 30% on average in the past three years, very high! ), although the static price-to-book ratio is a bit high, the dynamic price-to-book ratio is very low, and the current valuation is low, which can be held for a long time.