Index
On April 19, 2022, the Shanghai Composite Index closed at 319403 points, down 0.05%; Shenzhen composite index closed at 1163332 points, down 0.50%; The coal industry index closed at 309117 points, up 2.71%. The top three companies are: Shanghai Datun Energy Resources Co.Ltd(600508) , Liaoning Energy Industry Co.Ltd(600758) , Yankuang energy. The steel industry index closed at 279287 points, up 1.35%. The top three companies are: Shandong Jinling Mining Co.Ltd(000655) , Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) , Shengtak New Material Co.Ltd(300881) .
Comments
The coal sector led the gains. Recently, we have constantly mentioned the investment opportunities in the coal sector, mainly due to the profit side of the enterprise and the strong support of the current coal price. In terms of price, the pricing formula of 675 benchmark price + floating price will be implemented from May 1. It is basically foreseeable that the coal price center is expected to remain high in the second quarter. At the same time, the quantity of imported coal is smaller than before. The coal demand data in March continues to improve. The impact of the current overseas situation on the energy impact shows no signs of easing temporarily, and there is limited space for China’s short-term sharp downward price. Recently, with the announcement of the first quarterly report, most coal enterprises increased significantly year-on-year with the rise of coal prices. At the coking coal level, the downstream demand is strong and the profitability is strong. Under the current stable growth and double carbon policy, the profit center of coking coal enterprises is expected to continue to rise. It is suggested to pay attention to the corresponding opportunities. Related objects: Pingdingshan Tianan Coal Mining Co.Ltd(601666) , Yankuang energy, Shanxi Coking Coal Energy Group Co.Ltd(000983) .
Steel sector rose better. In terms of iron and steel raw materials, the cost advantage is gradually reflected. Looking at the price of iron ore throughout the year, the increase in supply is relatively certain, and the price is expected to return to a reasonable range in the future. At the same time, with the continuous stabilization of coking coal and coke prices, the profit end of the iron and steel industry will usher in the stage of bottom rebound. The central bank’s reserve requirement reduction of 0.25 percentage points is conducive to the current steel fundamentals. The end of the policy is bringing positive changes to the fundamentals, the cost side will also fall, and the industry profit side will usher in a new round of rise. Looking forward to the future, after the epidemic improves, the suppressed demand will usher in replenishment. The steel sector may have strong fundamentals and usher in a new round of rising market due to its undervalued value. Related objects: Hunan Valin Steel Co.Ltd(000932) , Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) , Fushun Special Steel Co.Ltd(600399) .
Industry dynamics
In March 2022, the country produced 88.3 million tons of crude steel, a year-on-year decrease of 6.40%; The production of steel was 116.89 million tons, a year-on-year decrease of 3.20%. (Steel Industry Association)
Company dynamics
Tongling Nonferrous Metals Group Co.Ltd(000630) ( Tongling Nonferrous Metals Group Co.Ltd(000630) ): the annual report of 2021 was disclosed. In 2021, the operating revenue was 131034 billion yuan, a year-on-year increase of 31.77%. The net profit attributable to shareholders of listed companies was 3.101 billion yuan, a year-on-year increase of 258.29%. （Wind）
Risk tip: the macro-economy is less than expected and geopolitical risks are escalating.
