wgmsspse

Shaogang Songshan (000717) 2019 Third Quarterly Report Review: Industry Prosperity Replaces Points to Increase Profitability

Shaogang Songshan (000717) 2019 Third Quarterly Report Review: Industry Prosperity Replaces Points to Increase Profitability
Investment highlights: The company achieved total operating income of 216 in the first three quarters of 2019.51 ppm, an increase of 11 years.77%; realized net profit return to mother 12.89 trillion, down 53 a year.23%, about the basic EPS 0.53 yuan, the performance is in line with our expectations.In the third quarter of this year, total operating income was achieved in a single quarter.62 ppm, a ten-year increase of 8.45%, net profit attributable to mothers2.82 million, a decrease of 71 a year.79%, a decrease of 53 from the previous month.10%. The output has increased sharply, and profits have increased.According to the data forecast of the China Iron and Steel Association, the company’s steel production in the first three quarters will be 486, 559, and 530, respectively, and will increase by 17 淡水桑拿网 each time.00%, 17.60% and 20.10%.Among them, the company’s iron, steel, and volume in the third quarter were 169, 195, and 190 lengths, each increased by 10 each time.97%, 11.20% and 16.34%, an increase of 3 from the previous month.65%, 4.59% and 11.29%.Industry budget, steel prices fell, taking Guangzhou rebar HRB400: 20mm price as an example, the average price in the second quarter fell 2 MoM.81%, meanwhile, the average price per ton of end-to-end foreign ore increased month-on-month, and the industry’s profit potential. The company’s gross profit and net profit per ton of steel in the first three quarters were 393 and 243 yuan, and it decreased by RMB 468 and 382 in the future. Among them, the forecasted gross profit and net profit per ton of steel in the third quarter were 307 and 149 yuan, respectively.Months down 171, 204 yuan. 1) During the period, the expense ratio continued to decrease.The company’s expense ratio in the last quarter of the last year continued to decline, and the expense ratio in the third quarter was only 2.49%, a decline of 2 per year.79 averages, a decrease of 0 from the previous quarter.28 units.Among them, the sales expense ratio decreased by 1 due to the impact of changes in transportation and storage costs for one-ticket settlement.40 units; maintenance costs decreased and total management expense rate increased and decreased by 0.88 units; short-term borrowings have been continuously reduced for more than one year each year leading to a decline in financial expenses, and the company has controlled research and development expenses.2) The company’s actual income rate in the third quarter was 26%, which increased by 23 every year.92 averages, an increase of 13 from the previous quarter.09 shares per share, mainly due to the company’s previous annual supplement has been made up, the company needs to accrue income tax expenses. The leading socialist demonstration zone with characteristics will help the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and the company will fully benefit.The Opinions of the CPC Central Committee and the State Council on Supporting Shenzhen to Build a Socialist Pioneering Demonstration Zone with Chinese Characteristics clarified the strategic layout of the Shenzhen Socialist Pioneering Demonstration Zone, and pointed out the need to promote the construction of the Guangdong-Hong Kong-Macao Greater Bay Area.The accelerated development of the Guangdong-Hong Kong-Macao Greater Bay Area is expected to continue to drive steel consumption in related regions in the next few years. As a leading building material in Guangdong, the company will benefit from the demand for steel from the construction of the Guangdong-Hong Kong-Macao Greater Bay Area. Maintain profit forecast and maintain “overweight” rating.The company’s Guangdong building materials leader is currently subject to the industry’s downturn. It will fully benefit from the demand for steel in the construction of the Guangdong-Hong Kong-Macao Greater Bay Area. It is expected that net profit will be attributable to mothers in 2019-2021.16.71/15.69/14.830,000 yuan, corresponding to EPS0.69/0.65/0.61. The current expected PE is 5/5/6 times, maintaining the “overweight” rating.