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Maanshan Iron & Steel (600808) 2019 Third Quarterly Report Review: Profit Growth
Investment highlights: The company achieved total operating income of 575 in the first three quarters of 2019.81 ‰, a decrease of 8 per year.77%; net profit attributable to mother 14.6.5 billion, down 73 a year.77%, about the basic EPS 0.19 yuan, lower than our expectations.In the third quarter, the total operating income was 205 in a single quarter.55 ppm, a reduction of 10 per year.84%, net profit attributable to mothers3.20 ppm, a reduction of 85 per year.16%, down 69.85%. Profit growth rate, long and strong boards have weak production potential for long products.The first three quarters of the company’s production of iron, steel, and steel were 1345, 1463, and 1381 lengths, which were reduced by 3 each year.03%, 3.24% and 4.twenty three%.The decrease in production was mainly due to the permanent shutdown of two 420 cubic meters of blast furnaces in April 2018, and the permanent shutdown of two 40-ton converters in October 2018, and the company’s 2500m blast furnace started on October 10, 2018.Overhaul and overhaul completed on February 24, 2019.In the third quarter, pig iron was inserted in 471, crude steel was inserted in 515, and steel was inserted in 490, which increased by 2 at the same time.46%, 0.41% and a reduction of 0.84%.As the industry continued to be strong and weak in the third quarter, the company’s average price of long products was only once.90%, while the price of sheet metal temporarily decreased by 8.25%.The company estimates the production of long products, and the output of long products increased by 2 in the third quarter.88%, the plate is reduced by 2 every year.49%.In the end, the company’s gross profit and net profit per ton of steel in the third quarter were 342 and 65 yuan, respectively, and fell by 390 and 373 yuan, respectively, and decreased by 166 and 161 yuan. The increase in the expense ratio and the actual tax rate during the period affects profitability.In the third quarter, the company’s tax and surcharges 杭州夜网 decreased by RMB 95 million, mainly due to the decrease in the reduction rate.The company’s expense ratio during the third quarter was 5.43%, up by 1 each year.Of the 69 totals, only the financial expense rate has decreased every year.The company’s actual return in the third quarter was 23.53%, an increase of 13 per year.01 averages, up 11 from the previous month.92 units. The “BMW merger” went well.On September 19, 2019, the State-owned Assets Supervision and Administration Commission of Anhui Province transferred its holding to China Baowu in accordance with its agreement with Baosteel of China on May 31, 2019 and the transfer of shares in Magang (Group) Holdings Co., Ltd.Some of the 51% equity of Maanshan Iron and Steel Group and related industrial and commercial change registration procedures on the same day.The actual controller of the company was changed from Anhui State-owned Assets Supervision and Administration Commission to State-owned Assets Supervision and Administration Commission of the State Council. China Baowu became the company’s indirect controlling shareholder, and the company’s direct controlling shareholder remained unchanged.Under the guidance of China Baowu, the company will optimize the industrial structure and further increase profits through planning and coordination. Earnings forecast is lowered, and “overweight” is downgraded to “neutral” rating.The company’s products cover three major series of strips, long products, and axles. The automotive plate and axle business has developed rapidly.At present, the company’s performance will improve and the overall profitability of the industry will weaken.We lower our profit forecast and expect net profit attributable to mothers in 2019-2021.79/22.11/22.1 billion (was 31.20/29.29/29.25ppm), corresponding to EPS0.31/0.29/0.29 yuan, currently expected to correspond to PE9 / 9/9 times, downgraded to “neutral” level.