Four days ago, the shareholders of Fangda Special Steel Technology Co.Ltd(600507) ( Fangda Special Steel Technology Co.Ltd(600507) , SH; previous closing price of 8.6 yuan) were still worried that an investment of 4 billion yuan would affect the dividend. As soon as the 2021 annual report of the company was released, the shareholders landed safely with a nervous heart.
On March 18, Fangda Special Steel Technology Co.Ltd(600507) disclosed the annual report: the company realized a net profit of 2.732 billion yuan attributable to shareholders of Listed Companies in 2021, an increase of 27.65% year-on-year; The basic earnings per share is 1.27 yuan. It is proposed to pay a cash dividend of 11.10 yuan (including tax) for every 10 shares, and the proportion of cash dividend (that is, the proportion of the total cash dividend in the net profit attributable to the shareholders of the listed company this year) is 87.60%.
Fangda Special Steel Technology Co.Ltd(600507) board secretary Wu Aiping previously said in an interview with the reporter of the daily economic news that the company’s cash flow is sufficient and the investment will not affect the company’s dividend.
cash dividend ratio 87.60%
In the Dividend History of China’s A-share listed companies, Fangda Special Steel Technology Co.Ltd(600507) has always been known for its generous dividends.
At the second extraordinary general meeting of shareholders in Fangda Special Steel Technology Co.Ltd(600507) 2022 four days ago, nearly 40% of the voters voted against a proposal on foreign investment and related party transactions. The proposal is that Fangda Special Steel Technology Co.Ltd(600507) and related parties invest in the establishment of Jiangxi huxu iron and steel industry investment partnership (limited partnership). The total scale of the fund is expected to be 10 billion yuan, and the company, as a limited partner, plans to invest 4 billion yuan.
On the same day, some shareholders who voted against said that they were mainly worried that such a large investment would affect the company’s dividend.
Compared with the plan that the company will distribute cash dividend of 11 yuan per 10 shares in 2020, the cash dividend of Fangda Special Steel Technology Co.Ltd(600507) 2021 will be increased, which is 11.10 yuan per 10 shares.
Since its listing in 2003, Fangda Special Steel Technology Co.Ltd(600507) has paid cash dividends 13 times in 18 years. The accumulated cash dividend amount is up to 10 billion yuan (excluding 2021).
In addition to paying large dividends to shareholders, Fangda Special Steel Technology Co.Ltd(600507) has also provided rich incentives to the top management of the company.
Fangda Special Steel Technology Co.Ltd(600507) the board of directors deliberated and approved the company’s 2022 A-share restricted stock incentive plan (Draft) on February 21, 2022. The company plans to grant 216 million restricted shares to incentive objects, accounting for 10% of the total share capital of the company at the time of announcement of the incentive plan; The total number of subject shares involved in all effective equity incentive plans of the company does not exceed 10% of the total share capital of the company. The price of restricted shares granted by the incentive plan is 4.29 yuan / share.
Based on the Fangda Special Steel Technology Co.Ltd(600507) closing price of 8.6 yuan / share on March 18, the stock incentive price is equivalent to a 50% discount.
northbound capital reduction
According to the annual report data, in 2021, Fangda Special Steel Technology Co.Ltd(600507) achieved steel output of 4.2479 million tons; The operating income was 21.679 billion yuan, and the net profit attributable to the shareholders of the listed company was 2.732 billion yuan, which achieved good operating benefits.
Fangda Special Steel Technology Co.Ltd(600507) said in the annual report that steel prices fluctuated greatly throughout the year in 2021. Before May, China’s epidemic prevention and control was normalized, driven by manufacturing, real estate and infrastructure investment. China’s consumer demand was at a high level. With the popularity of international covid-19 vaccine and the impact of relatively loose monetary policy, the expected economic recovery led to the improvement of global manufacturing industry, the supply and demand of steel industry improved in both directions, and the steel price once hit a record high.
After May, with the state’s regulation on the rise of overheated raw material prices, there was a sharp correction in the prices of bulk commodities such as steel. In the third quarter, boosted by the news of nationwide power and production restrictions, the supply side contracted significantly and the steel price rose again. In the fourth quarter, China’s economic growth fell, especially the downturn of the real estate industry, the weakening of the demand side, and the price of steel market fluctuated and corrected again.
It can also be seen from the list of top ten shareholders in Fangda Special Steel Technology Co.Ltd(600507) 2021 annual report that with the fluctuation of steel market, the fund is also changing positions and shares.
The reporter noted that among the top ten shareholders of Fangda Special Steel Technology Co.Ltd(600507) the capital of North China began to reduce their positions, and the number of capital positions of North China was 153.6 million shares, a decrease of 127947 million shares compared with the data in the third quarterly report of 2021.
Compared with the third quarter of 2021, the number of shares held by Hua’an strategy preferred hybrid and Hua’an advantageous enterprises managed by Yang Ming increased by 8.596 million shares and 4.0354 million shares respectively.
In addition, Haifutong reform driven hybrid fund and Guosen Securities Co.Ltd(002736) Xinjin are among Fangda Special Steel Technology Co.Ltd(600507) top ten shareholders.
