On April 6, A-share steel stocks continued to make efforts, and Hunan Valin Steel Co.Ltd(000932) , Anyang Iron & Steel Inc(600569) , Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) , Shengtak New Material Co.Ltd(300881) limit, Maanshan Iron & Steel Company Limited(600808) , Xinyu Iron & Steel Co.Ltd(600782) , Sgis Songshan Co.Ltd(000717) , etc. followed the sharp rise.
Steel stocks rose sharply for a long time. Why? Sustainable?
The reporter of Shanghai Securities News found that the P / E ratio of A-share steel stocks is still at the bottom of history, and the phenomenon of “breaking the net” occurs frequently, accounting for the proportion of the total number of breaking the net, which is second only to banks and other sectors. At the same time, the performance of the steel sector has improved significantly, and most companies have launched cash dividends. With the significant recovery of real estate policy, this may be the core logic of the recent strength of steel stocks.
This late spring may be expected to “warm” steel stocks for a long time.
iron and steel stocks broke through in a large area
According to the statistical data of the reporter of Shanghai Securities News, steel stocks have broken the net in a large area, with 20 breaking the net, and nearly half of the steel stocks have a share price lower than the net assets per share. In terms of horizontal comparison, the proportion of net breaking stocks in the total number of net breaking stocks is 6.83%, ranking fourth only to the real estate, banking and transportation industries.
Among them, Hbis Company Limited(000709) , Angang Steel Company Limited(000898) and other two companies have a net breaking range of more than 40%, while Chongqing Iron & Steel Company Limited(601005) , Sansteel Minguang Co.Ltd.Fujian(002110) and other steel stocks have a net breaking range of more than 20%.
Why do steel stocks break net in a large area?
The investment professionals interviewed believed that steel is a strong cyclical industry, and the market questioned the sustainability of its profits. Because the upstream of the steel industry is squeezed by raw materials and the downstream is suppressed by real estate policies, the steel sector will be affected more.
Fortunately, the recent real estate policy has shown obvious signs of relaxation.
At the same time, the steel stocks that have disclosed the annual report generally have double growth in revenue and net profit. The steel industry is also one of the industries keen on cash dividends. This year, the same is true. The dividend rate and dividend rate of some companies have maintained a high level.
common cash net profit receivable double increase
According to the statistical data of the reporter of Shanghai Securities News, at present, 25 iron and steel enterprises have disclosed the annual report or performance express of 2021. Among them, the operating revenue and net profit attributable to the parent company of 22 iron and steel stocks have increased significantly, generally showing double growth of revenue and net profit. Only Shandong Jinling Mining Co.Ltd(000655) , Zhejiang Kingland Pipeline And Technologies Co.Ltd(002443) and Jiang Su Wujin Stainless Steel Pipe Group Co.Ltd(603878) 3 companies have a year-on-year decrease in net profit.
Among them, the net profit of 10 iron and steel enterprises in 2021 increased by more than 100% year-on-year, the operating revenue of Bengang Steel Plates Co.Ltd(000761) and Hainan Mining Co.Ltd(601969) increased by 779.12% and 41.19% year-on-year respectively, and the net profit attributable to the parent company increased by more than 500% year-on-year Fangda Carbon New Material Co.Ltd(600516) , Shandong Iron And Steel Company Ltd(600022) and other stocks also saw a significant increase in revenue and net profit.
Fangda Special Steel Technology Co.Ltd(600507) said in the annual report that in 2021, despite the severe situation of sharp rise in costs and large fluctuation in market prices, iron and steel enterprises carried out in-depth benchmarking and tapping potential activities and achieved good business performance.
Last year, not only did the performance of listed companies increase significantly, but also the overall industry profit achieved a good growth. In 2021, the total profit of member steel enterprises of China Iron and steel industry association was 352.4 billion yuan, a year-on-year increase of 59.67%; The sales profit margin was 5.08%, a year-on-year increase of 0.85 percentage points, and the industrial efficiency was greatly improved.
80% of steel shares to be distributed in cash
While the performance of steel companies has increased significantly, they have also disclosed a large proportion of cash dividend schemes.
According to the statistics of the reporter of Shanghai Securities News, as of April 6, 16 steel stocks have disclosed the annual report of 2021, of which 12 have disclosed the profit distribution plan, almost all of which are cash dividends.
According to the annual report, Fangda Special Steel Technology Co.Ltd(600507) dividend is the most ambitious. It plans to distribute cash dividend of 11.10 yuan (including tax) to all shareholders for every 10 shares, and it plans to distribute cash dividend of 2.393 billion yuan. The total cash dividend accounts for 87.60% of the net profit attributable to shareholders of listed companies this year. According to the latest price, the dividend yield of the company is as high as 12.77%.
From the perspective of 2021, Bengang Steel Plates Co.Ltd(000761) is the king who will not yield. The company realized a net profit of 2.501 billion yuan in 2021, with a year-on-year increase of 550.77%. In 2021, the company will distribute a cash dividend of RMB 10.73 (including semi annual report and annual report) for every 10 shares, with a total dividend of RMB 4.408 billion and a dividend rate of 176.26%. According to the current stock price, the dividend yield is as high as 24.55%, and A-Shares rank first.
According to investigation, Bengang Steel Plates Co.Ltd(000761) has been paid out for two consecutive years after its listing, with a total dividend of 9.174 billion yuan. At present, the P / E ratio is 7 times, the P / B ratio is 0.83 times, and the total market value is 18 billion yuan.
In addition, Jiangsu Changbao Steeltube Co.Ltd(002478) , Shandong Iron And Steel Company Ltd(600022) , Citic Pacific Special Steel Group Co.Ltd(000708) and other companies have more than 50% dividend rate in 2021 The dividend rates of Maanshan Iron & Steel Company Limited(600808) , Nanjing Iron & Steel Co.Ltd(600282) , Angang Steel Company Limited(000898) and Angang Steel Company Limited(000898) are 8.75%, 8.27% and 6.23% respectively, far exceeding the one-year deposit interest rate.
