Securities code: Hunan Valin Steel Co.Ltd(000932) securities abbreviation: Hunan Valin Steel Co.Ltd(000932)
Hunan Valin Steel Co.Ltd(000932) investor relations activity record
No.: 2022-9
\uf0a3 specific object research □ analyst meeting
Investor relations activity □ media interview \uf0a3 performance briefing
Event category □ press conference □ Roadshow
\uf0a3 on site visit □ teleconference
□ others (please specify other activities in words)
INVESCO GLOBAL HANYING ZHOU
Participant name lion global – ocim Jeanette Sim
And name of person: manage asset management Wenlin Li
J.P. MORGAN PO WEI, XIAOXIN ZHANG, TINGTING GE
Time: March 31, 2022
Venue: conference room 402, Valin main building, No. 222, Xiangfu West Road, Changsha, Hunan
Name of receptionist: Liu Xiaofei, Wang shujiao, Wang Yin, Zhou Yujian
1. What is the company’s performance in the fourth quarter of 2021?
A: the company has disclosed the performance forecast for 2021 in the early stage. Although the iron and steel industry is facing complex situations such as macroeconomic triple pressure, capacity and output “double control” constraints, high fluctuations in raw fuel prices and so on, the investor relations are flexible, and the company meets the difficulties and calmly responds, and continues to promote the construction of “three strategic support systems” for lean production, marketing, research and production integration and marketing services, Unswervingly target, tap potential and reduce costs, unswervingly adjust the structure and improve quality, unswervingly deepen reform and improve efficiency, and it is expected to achieve a net profit of 9.5 billion yuan to 9.9 billion yuan attributable to shareholders of listed companies throughout the year, reaching the best level in history; In the fourth quarter, affected by the decline in the demand of the subsidiary’s blast furnace maintenance and real estate industries, the net profit attributable to the shareholders of the listed company is expected to be 1.736 billion yuan ~ 2.136 billion yuan, a slight decline month on month, but an increase of more than 20% year-on-year, maintaining a stable and good profit level.
2. What is the company’s operation in the first quarter of 2022?
In the first quarter of 2022, with the steel consumption entering the peak season, the production and operation of the company remained stable, and the demand and orders were relatively full, which rebounded from the fourth quarter of last year. In terms of varieties and downstream, it still maintains the situation that the board is strong, long and weak, and the demand in the industrial field is better than that in the construction industry. In terms of sectors, shipbuilding, wind power, automobiles, electrical steel, bridges, etc. continued the good demand trend in 2021, and the demand for construction machinery and heavy trucks was basically stable, but still weaker than that in the first half of last year; In terms of long materials, benefiting from the support of real estate policy, its demand has rebounded compared with the fourth quarter of 2021; Affected by the rise of oil price and other factors, the demand and order volume of seamless steel pipe improved month on month.
3. Outlook for the second quarter and the whole year of 2022?
A: from the supply side, under the background of “double carbon”, the iron and steel industry has ushered in a new supply cycle of carbon control, ultra-low emission and merger and reorganization. Its 20-year capacity expansion cycle has basically ended, and the upward elasticity of output is limited. In addition, the local situation overseas is tense, and the global iron and steel supply is limited to some extent; From the demand side, the second quarter is the peak season of traditional steel consumption. In addition, 2022 is the year of change of office. The formulation of economic objectives adheres to the general tone of “taking the lead in stability and seeking progress in stability”. The economic downturn is still under great pressure. This year, policies such as the payment of new local government special bonds and special income, the addition and deduction of R & D expenses of scientific and technological small and medium-sized enterprises, and the retention and rebate of manufacturing value-added tax will be strengthened. Scientific and technological innovation is still in the growth stage, and its impact on the economy is limited. The underpinning of the economy still needs the power of traditional infrastructure and real estate. Recently, some cities have liberalized the purchase restriction policy and reduced the loan interest rate. The real estate policy has been relaxed, which has formed a great support for the demand for steel. The company remains relatively cautious and optimistic about the outlook of the steel industry this year.
After hard training in recent years, the company’s profitability has remained stable. It has been in the first square of the industry and its anti cycle ability has been further strengthened. In the future, the company will continue to follow the direction of market demand and high-end manufacturing transformation, refine and strengthen the main iron and steel industry, continuously improve the proportion of variety steel based on high-end positioning and personalized requirements, promote the upgrading of variety structure, and accelerate the transformation of products from “high-quality steel” to “special steel”, Further consolidate and expand the company’s competitive advantage in relevant market segments and continue to maintain a relatively stable and good profit level.
4. What is the company’s export proportion? The price of steel in Europe and America is significantly higher than that in China. Will the company increase its export
Mouth?
A: in the first half of 2021, the company’s foreign revenue accounted for 3.42% of its operating revenue, mainly including seamless steel pipes and some sectors. The company’s products give priority to meeting the needs of China, has established stable cooperative relations with industry leaders and benchmark customers in many downstream market segments, and the proportion of direct supply has increased year by year. In addition, due to the impact of anti-dumping policies in Europe and the United States, there are some obstacles in the export of steel to Europe and the United States. In the short term, the export proportion of the company will not change much. Subsequently, the company will comprehensively consider whether to expand exports according to the national steel export policy, overseas order demand, order receiving price, relevant tax costs, long order cycle steel price fluctuation risk, exchange rate fluctuation risk and other factors.
5. With the recent rise in raw fuel prices, what does the company think of the future price of iron ore?
A: the recent rise in iron ore prices, on the one hand, is affected by the international situation, on the other hand, because the peak demand season of the whole iron and steel industry is coming, and the combination of “accelerated issuance of special bonds + loose capital” of the stable economic policy is introduced, the market expects the demand for iron ore to be better. In view of the changes in the price of iron ore, the national development and Reform Commission, the State Administration of market supervision, the CSRC and other ministries and commissions have made thunderous moves and deepened step by step, brewing and promoting the “cornerstone plan”, improving the resource guarantee capacity of China’s iron and steel industry, strictly controlling and strictly investigating the speculation of iron ore in violation of the fundamentals of supply and demand. Throughout the year, under the background of “carbon peak and carbon neutralization”, the policy of the iron and steel industry is still the general principle of capacity and output control, while the iron ore supply is expected to increase. With the gradual recovery of supply side shipping, it does not support the continued sharp rise of iron ore prices.
6. Ultra low emission requirements?
A: according to the requirements of the implementation plan for ultra-low emission transformation of Hunan Iron and steel industry, the subsidiary Valin Xianggang is expected to achieve ultra-low emission by 2023, Valin Lianyuan Steel and Valin Henggang will achieve ultra-low emission by 2025, and the completion progress of ultra-low emission of Yangchun Xingang will be moderately ahead of schedule. At present, various environmental protection transformation projects are progressing smoothly.
At the same time, the company attaches great importance to and pays attention to the application of various carbon reduction methods and new metallurgical technologies, has hired professional intermediaries to formulate the company’s “carbon peak and carbon neutralization” action plan, and is also jointly exploring the application of relevant new technologies with some upstream and downstream partners, so as to contribute to reducing carbon emissions and realizing carbon neutralization.
Annex list none
Date: April 3, 2022
