Shaogang Songshan (000717) annual report comment report： new high performance attempts to continue to benefit from the construction of the Guangdong, Hong Kong and Macao Greater Bay Area
Shaogang Songshan (000717) annual report comment report: new high performance attempts to continue to benefit from the construction of the “Guangdong, Hong Kong and Macao” Greater Bay Area
Incident March 28, the company released the “2018 Annual Report”.In 2018, the company achieved operating income of 271.1.2 billion, up 7 every year.95%; net profit attributable to mother 33.0.6 billion, up 28 every year.20%; EPS1 achieved.37 yuan, up 28 every year.21%; ROE is 67.47%, a decrease of 43 per year.00%. The primary price is high, and the company’s profit reaches a new high. The company’s main product is long products. According to the annual report, the company’s products include long products (bars + wires) accounting for 64 of total revenue.99%.According to the long product price index calculated by the China Iron and Steel Association, the average 2018 value is 121.85, an increase of 8 compared with 2017.19%.The initial price maintained at a high level drove the company’s performance growth.However, since November 2018, steel prices have increased, so the company’s fourth-quarter performance has been affected.In March of this year, steel prices began to gradually rise, and the company’s performance will remain stable. The company is strategically located and is expected to benefit from the “Guangdong, Hong Kong and Macau” Greater Bay Area Construction Company, which is located in Shaoguan City, Guangdong Province, and is the only listed steel company in the “Guangdong, Hong Kong, Macau and Greater Bay Area”.For a long time, Guangdong Province has been a net steel inflow region.According to the “Investor Relations Activity Record Sheet” released by the company on December 29, 2017, there is approximately 3,000 steel inflows in South China every year.The net inflow of steel is obvious.Guangdong ‘s own steel demand gap is huge. Improvements in the construction of the Greater Bay Area have further increased steel demand in the region, and the company ‘s products can replace infrastructure products (bars + wires + medium and heavy plates) in 79%.77%西安耍耍网, as a leading regional construction steel company, the company is committed to benefiting in the long-term construction of the “Guangdong, Hong Kong and Macao” Greater Bay Area. The company’s output is expected to increase to February 5, 2018 and February 9, 2018. The company has had gas leaks and high temperature burn accidents, leading to the company’s production scale. The production of iron, steel, and steel products was 577,661. Preliminary, 618 budget,Reduced by 8 every year.37%, 3.89%, 2.46%.On March 28, the company also released the “Announcement on the Investment Framework Plan for Infrastructure Construction Technology Reform Projects in 2019”. The company’s 2019 planning plan arranges 187 infrastructure construction technology transformation projects with an investment scale of 22.0.5 billion.Specifically, there are 47 cost reduction and efficiency improvement projects with an investment of 2.2.2 billion, 34 environmental protection projects, investment amount 6.57 trillion, 35 equipment measures and safety projects, investment amount 2.6.1 billion.Therefore, we believe that the company’s future investment in equipment safety will ensure the smooth operation of the company’s production, and the company’s output will gradually increase in 2019. Investment suggestion that the company’s output in 2019 has room to rise, and the company is expected to benefit from the construction of the Greater Bay Area. Future performance is expected to be supported. Considering that the capacity reduction task is completed in advance, the supply and demand alternation will remain stable. It is expected that the company’s future performance will be mainly stableWe will have EPS from 2019-2020 by 1.48/1.67 yuan adjusted to 1.46/1.54 yuan, EPS is 1 in 2021.78 yuan, maintain “Buy” rating. Risk reminder: The construction of the Greater Bay Area is less than expected, and raw material prices fluctuate sharply.