Beijing Shougang Co.Ltd(000959) (000959)
Jingtang and Qian’an bases are listed companies as a whole
Before this transaction, Beijing Shougang Co.Ltd(000959) held 51.00% equity of steel trading company, and steel trading company held 29.8177% equity of Jingtang company. After the completion of this transaction, the listed company will directly hold 100% of the equity of the steel trading company and jointly hold 100.00% of the equity of Jingtang company directly and through the steel trading company. According to the output of the company in the first half of 2021, the output of steel and steel of Jingtang company in the first half of 2021 was 7.66 million tons and 7 million tons respectively. After the completion of the transaction, the company’s equity crude steel output increased by 2.3 million tons and steel output increased by 2.1 million tons.
The profit is expected to increase by more than 1 billion yuan
In the first half of the year, the steel trading company realized a net profit of 898 million yuan and Jingtang company realized a net profit of 2.927 billion yuan. Converted according to the shareholding of 29.8177%, Jingtang company contributed a profit of 873 million yuan, accounting for 97%. In the first half of the year, the net profit per ton of steel of Jingtang company was 418 yuan. According to this calculation, the profit brought by the new output was close to 900 million yuan. Considering that the company’s products continue to promote high-end, the profit is stable at a high level. Next year, Jingtang base is expected to further increase its profits with the sharp decline in the price of raw materials. After the transaction is completed and consolidated, the profit is expected to increase by more than 1 billion yuan.
The company has entered the performance release stage and is expected to continue to repay shareholders for a long time
The company is committed to the development of high-end product clusters, and the output of strategic products electrical steel, automobile plate and tinplate has increased steadily. The proportion of total profits of strategic products in the future is expected to exceed 50%. In addition, the company’s cost entered the inflection point period, and the depreciation + amortization and expense side of ton steel continued to decline. Therefore, the company is expected to continue to maintain high profitability. The company has formulated a dividend return plan for shareholders in the next three years and will continue to return to shareholders.
Profit forecast and valuation
As a new energy soft magnetic material The leading (electrical steel) and high-end industrial plate enterprises are expected to benefit from the growth of manufacturing industry and the improvement of profitability brought by the company’s own product upgrading + internal potential tapping in the future. We expect that from 2021 to 2023, the company will realize an operating revenue of 118.592/135.154/136.506 billion yuan and a net profit attributable to the parent company of 8.02/94.60/103/60 billion yuan, corresponding to eps1.51/1.79/1.96 yuan and 20 21-2023 PE4 19 / 3.55/3.24x. Optimistic about the future growth of the company and maintain the “buy” rating.
Risk warning: this transaction may be suspended, suspended or cancelled, the price of upstream raw materials rises sharply, and the implementation of production reduction is less than expected
