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.: 202211
\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)
Name of participant
Jingshun Great Wall, Li Jianlin, Zou Lihu, Orient Securities Company Limited(600958) Liu Yang
And personnel name
Time: March 31, 2022
Venue: conference room 402, Valin main building, No. 222, Xiangfu West Road, Changsha, Hunan
Name of receptionist: Liu Xiaofei, 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 and high fluctuation of raw fuel prices, the company meets difficulties and calmly responds, continues to promote the construction of "three strategic support systems" for lean production, marketing research and production integration and marketing and investor relations, and unswervingly targets, tap potential and reduce costs, Unswervingly mobilize the main contents, improve the quality of the intermediary structure, unswervingly deepen the reform and improve the efficiency, and it is expected to achieve a net profit of 9.5 billion yuan to 9.9 billion yuan attributable to the Shao shareholders of the listed company 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,
Demand and orders are relatively full, rebounding 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 strive to continue to maintain a relatively stable and good profit level.
4. What is the company's export proportion and main varieties? What are the company's export plans for this year?
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 and have been used in many countries
The downstream market segment has established a stable cooperative relationship with industry leaders and benchmark customers, and the proportion of direct supply has increased year by year. In addition, due to the impact of anti-dumping policies in Europe and America, there are some obstacles in the export of steel to Europe and America. 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. What is the company's inventory level? What is the output policy this year?
A: the company has long adhered to the low inventory operation strategy, organized production according to orders, and purchased raw fuels such as iron ore according to the actual production and operation needs. At present, the inventory of raw fuels and finished products is at a normal level.
Carbon peak and carbon neutralization is a long-term green development strategy, which is conducive to promoting the high-quality development of the iron and steel industry. In this context, the supply side of the steel industry is limited or will be normalized. The company will actively respond to the call of the state and organize production in accordance with laws and regulations.
6. Why has the company's profit remained stable in recent years?
A: objectively, the supply side reform at the policy level has a great positive impact on the iron and steel industry, and the company also benefits from it. In addition, the company's main production bases are in Hunan and Guangdong, which belong to the region of net inflow of steel, especially in Hunan, with high industry concentration and orderly supply and demand pattern. One belt, one road along the Yangtze River, the other side of the Yangtze River, the Guangdong, Hongkong and Macau, and other national strategies, and the rapid development of the manufacturing industry in Hunan and surrounding areas, such as construction machinery, automobile and equipment manufacturing, has provided a good support for the downstream demand of steel and created favorable conditions for the development of the company.
Subjectively, there are also several reasons: 1) in terms of system and mechanism, the company continues to optimize the "hard constraint and strong incentive" mechanism, and implements the market-oriented salary linked with income and performance indicators. The salary level of the management and employees of the subsidiary has obvious competitiveness and incentive effect in the local area, and has issued various talent seeking policies and generous benefits to attract high-end professionals and set up a doctoral studio, Carry out regular technical exchange activities and open up green channels for incoming doctors to stimulate the innovative vitality of talents; At the same time, the company adheres to the "annual comprehensive assessment and mantissa elimination", and the cadres whose performance indicators do not reach 70% will be dismissed on the spot; In the annual evaluation of cadres, the last elimination mechanism has also been adhered to for a long time, and the proportion of "last elimination" cadres in has been maintained at about 5%, so as to stimulate the middle and high-level teams to dare to take responsibility, innovate and seek change
Work enthusiasm; 2) In terms of variety structure, in recent years, the company has closely followed the direction of market demand and high-end manufacturing transformation, aimed at landmark projects and industry benchmark customers, established leading advantages in energy and oil and gas, shipbuilding and marine engineering, high-tech construction and bridges, construction machinery, automobiles and household appliances with excellent products, stable quality and unexpected services, and has accumulated a large number of high-quality strategic customers, The proportion of direct supply of products and the proportion of sales of varieties of steel are increasing, which helps to resist the cycle risk and achieve a stable and good profit level; 3) In terms of cost reduction and efficiency increase, the company actively benchmarked the advanced industry, improved technical and economic indicators, and continuously reduced process costs.
Accelerate the intelligent and digital transformation and continuously optimize labor productivity. In 2021, the per capita annual output of Valin Xianggang and Valin LIANGANG, the main subsidiaries, exceeded 1500 tons, maintaining the advanced level of the industry, and there is still room for further improvement in the future. The financial expenses decreased significantly. The financial expenses in the first three quarters of 2021 decreased by 95% compared with the highest in the same period in history.
7. Ultra low emission requirements and measures?
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.
8. Proportion and pricing mode of direct supply products?
A: the direct supply proportion of the company's products is high. For example, the direct supply proportion of wide and thick sectors is about 90%, and the direct supply proportion of cold and hot rolled thin sectors is more than 60%. The company has established a strategic cooperation relationship with most direct supply customers. The price is mostly a single discussion. The price is increased on the base price of ordinary steel and locked when receiving orders, which is conducive to maintaining the continuous stability of profits.
9. Dividend planning and capital expenditure planning?
A: the company has formulated the shareholder return plan for the next three years (20192021)
If the profit distribution conditions are met, the cash dividend in 2022 is expected to be "no less than 30% of the average annual distributable profit realized in the last three years" and "no less than 20% of the net profit attributable to the shareholders of the parent company realized by the company in 2021". Please pay attention to the announcement on the profit distribution plan of 2021, which will be disclosed by the company before April 30, 2022.
In 2022, the company's capital expenditure direction will focus on the following aspects: first, strive to promote the high-end variety structure and system cost reduction and efficiency increase, mainly including the phase I construction project of high-grade silicon steel production line and the product structure adjustment and upgrading project guided by advanced steel materials; Second, focus on promoting low-carbon and green transformation, mainly including ultra-low emission transformation and high-efficiency surplus energy power generation projects; Third, focus on promoting the transformation of digital intelligence. The main implementation directions are big data application based on cloud platform, informatization and centralized operation control of iron front stockyard and production area, function expansion and application of equipment energy center, 5g + and machine vision technology application, etc; Fourth, focus on promoting the extension of the iron and steel industry chain, mainly the phase II construction project of automobile sector.
10. What are the reasons for the substantial increase in R & D expenses?
A: Based on the high-end positioning of products and the personalized needs of end customers, the company continues to improve the construction of the integrated R & D system of marketing, research and production with IPD as the carrier, promote the upgrading of variety structure, accelerate the transformation of products from "excellent steel" to "special steel", implement "domestic" instead of "import" in key steel fields, and boost the company's products to the top of the industrial chain and value chain. In recent years, the company has continued to increase R & D investment, and R & D expenses have increased year-on-year. Meanwhile, the main subsidiaries of the company, Valin Xianggang, Valin LIANGANG, Valin Henggang and Vama, are high-tech enterprises. Since 2020, the R & D expenses have been collected according to the collection scope of R & D plus deducting relevant documents in accordance with the new provisions of Hunan Provincial Department of science and technology on the evaluation of high-tech enterprise recognition policies and the requirements of government statistics departments, Part of the R & D expenses originally included in the production cost are adjusted to the R & D expense account, such as the cost of small batch trial production of new products. Since 2017, the company's profitability has continuously ranked first in the industry, and high R & D investment is also one of the important reasons for the company's sustained and stable profitability in recent years.
Annex list none
Date: April 3, 2022
