Valin Iron & Steel (000932): Increase in steel output, profit decline, continuous industry average
The company announced its semi-annual report for 2019, which produced a total of 990 steel weights in 2019H1.
The company produced a total of 857, 1050, and 990 leads for steel and steel in 2019H1, and sold 1004 leads for steel, up by 11 respectively.
Among them, the company focused on the adjustment of the variety structure, and realized the sales of key varieties of steel 448 in the first half of the year, an annual increase of 20%.
The company achieved net profit attributable to mothers in the first half of 201922.
37 trillion, down 34 a year.
The company achieved operating income of 483 in 2019H1.
37 trillion, an increase of 11 in ten years.
17% to maximize profits 37.
3.8 billion, down 16 a year.
09%, net profit attributable to mothers22.
37 trillion, down 34 a year.
Among them, the second quarter achieved net profit attributable to mothers11.
45 trillion, down 39 a year.
90%, but the chain increased by 4.
The company’s deadline for the six debt-to-equity implementation agencies increased capital in “Sangang”, before the reorganization was completed, the company ‘s shareholding ratio in “Sangang” gradually decreased, so the decline in net profit of the parent company was greater than the maximum profit.
The company’s profit decline was lower than the industry average, and the gross profit per ton of steel rose in the second quarter.
The company’s gross profit per ton of steel in the second quarter was 716 yuan / ton, and the net profit per ton of steel was 350 yuan / ton, corresponding to a gross profit margin of 14% and a net profit margin of 7%, a slight increase from the first quarter.
We believe that the company ‘s profitability was lowered in the first half of the year due to the high iron ore price, but from the industry average perspective, the company ‘s profitability is still better.
Sinosteel Association member steel enterprises in the first half of the year to achieve a maximum profit of 10.65 million yuan, downgraded by 20 each year.
5%, irrespective of the impact of restructuring, the company’s profit decline still exceeds the industry average.
The company’s financial expense ratio declined, and its asset-liability ratio continued to fall.
The company’s second quarter financial expense ratio was zero.
75%, a new low in recent years. The decline in the company’s financial expenses was mainly due to the company’s voluntary repayment of some loans, which drastically reduced its revenue.
The company’s 2018 equity distribution plan is to increase 4 shares for every 10 shares, and the total share capital will increase to 42 after the increase.
2.2 billion shares.
At the end of the second quarter, the company’s 都市夜网 asset-liability ratio was 60.
40%, the company’s debt ratio has steadily decreased in recent years.
The company’s issuance of shares and payment of cash to purchase assets have been reviewed and approved by the CSRC.
On August 14, the CSRC reviewed and approved the company’s plan to issue shares and pay cash to purchase assets. The company plans to purchase Hualing Xianggang13.
68%, Valin Liangang 44.
17%, Valin Steel Pipe 43.42% equity, while purchasing 100% equity of Hualing Energy in cash.
The total consideration of the underlying asset is 104.
66 trillion, of which 87.
350,000 yuan was paid by issuing shares, 17.
310,000 yuan was paid in cash.
Profit forecast and investment rating.
Without considering the reorganization, we expect the company’s EPS for 2019-2021 to be 1.
93 yuan, according to the closing price of 4 on August 16.
15 yuan calculation PE is 3 respectively.
46 times, referring to comparable companies, giving it 6-7 times PE in 2019, with a reasonable value range of 6.
29 yuan, corresponding to 2019 PB1.
33 times, maintain “previous market” rating.
The growth rate of real estate investment broke through rapidly; the demand for manufacturing steel fell.