Shougang Co., Ltd. (000959): Increase in production capacity lifts the second phase of Jingtang to contribute future growth

Shougang Co., Ltd. (000959): Increase in 苏州桑拿网 production capacity lifts the second phase of Jingtang to contribute future growth
Event: The company released the 2018 annual report and the 2019 first quarter report: in 2018, it realized revenue and attributed to its parent net profit of 657.7.7 billion, 24.40,000 yuan, an increase of 9 in ten years.18%, 8.73%.In the first quarter of 2019, it realized revenue and attributed its net profit to 153.880,000 yuan, 2.7.4 billion, a previous appreciation of 5.31%, -45.65%.Basic transparency gains were zero in 2018.45 yuan. Investment points: Production and operation status in 2018: The company’s steel production and sales in 2018 were 1470 spindles, 1469 guide rails, and increased by 1.19%, 0.73%.Judging from the output of major subsidiaries and core products, Qiangang Steel produced 745 steel vertically and increased vertically3.91%, the electrical steel 160 produced by Zhixin Company was inserted, which remained flat, and the cold-rolled sheet 170 produced by the cold-rolling company was at least, continuously falling 4.49%, Jingtang’s steel production 818 growth rate, long-term growth6.twenty three%.Breakthrough of the main business structure, the main products of cold-rolled sheet, hot-rolled, and other businesses achieved revenue of 394 in 2018.400 million, 223.7 trillion, 27 trillion, revenue increased by 9 over the previous year.62%, 4.87%, 36.18%.In terms of profitability, the gross profit margins of cold-rolled sheet, hot-rolled and other businesses were 9 respectively.87%, 16.82%, 25.98%, up -2 from last year.47 points., 4.07 points.,-2.77 points., The comprehensive gross profit margin fell by 0.2pct.To 12.97%.In 2018, ton steel impurities, ton steel cost and ton steel gross profit were 4294 yuan / ton, 3760 yuan / ton, 533 yuan / ton, and gradually increased by 297 yuan / ton, 268 yuan / ton, and 28 yuan / ton. Cost reduction and main financial indicators: Due to the pressure on the growth rate of automobile sales, the profitability of cold rolled sheet products of major products has declined, resulting in a slowdown in the company’s performance growth.The total sales, management, finance and R & D revenue ratio in 2018 was 7.4%.Asset-liability ratio 73.1%, a slight increase of 0 from 2017.3 points, the effect of removing the bars is not good. Beijing-Tianjin-Hebei’s leading steel enterprises have achieved ultra-low-emissions reforms and reduced production capacity.The company mainly produces high-end sheet metal, locates high-end product markets such as special industries and military industries, and ranks among the top three nationwide in terms of market share in automotive plates and home appliance plates.As the company’s main production bases are located in the Beijing-Tianjin-Hebei production-restricted area, past capacity utilization has been somewhat restrained.In 2018, the company continued to consume ultra-low emission transformation, and now the main environmental protection indicators have reached the Hebei ultra-low emission transformation standard.In addition, the construction of the 青岛夜网 second phase of Jingtang Company is progressing smoothly. This project will be the company’s main capacity increase in the future. Covered for the first time, giving an overweight rating.Regardless of the future commissioning of the Jingtang Phase II project, the company’s EPS for 2019-2021 is expected to be zero.33/0.35/0.39 yuan, corresponding to PE11.56/10.82/9.78 times, covering for the first time, giving an overweight rating. Risk warning: the macro economy is lower, and downstream demand is lower than expected; the price of nickel, the main raw material of major products, is higher; emission standards have been raised again, and production restrictions have again tended to severely suppress the company’s output; the second phase of the Jingtang project has been put into operation.