Under the background of “double carbon”, the profits of iron and steel enterprises rose sharply.
a number of documents in the iron and steel industry will be issued
At the third meeting of the Sixth General Meeting of China Iron and Steel Industry Association on January 10, LV Guixin, a first-class inspector of the raw material industry department of the Ministry of industry and information technology, said that we should further improve the development quality of the industry. Recently, the “14th five year plan” for the development of raw material industry has been released, the guiding opinions on promoting the high-quality development of the iron and steel industry and the implementation plan for carbon peak in the iron and steel industry will be issued one after another. Next, we should further publicize and implement these important policy documents, make great efforts to implement them, further promote the merger and reorganization of the industry, and further improve the green, intelligent, high-end and service level of the industry.
In the previous “14th five year plan” for raw material industry, it was emphasized that the production capacity of key raw materials and bulk products such as crude steel was only reduced but not increased, the capacity utilization rate remained at a reasonable level, phased results were achieved in the control of total energy consumption and carbon emission in the iron and steel industry, and the comprehensive energy consumption per ton of steel in the iron and steel industry was reduced by 2%. In terms of enterprise development, it is mentioned in the plan that the “14th five year plan” will encourage leading enterprises to implement merger and reorganization, build several world-class super large iron and steel enterprise groups, and rely on advantageous enterprises to cultivate 1-2 professional pilot enterprises in stainless steel, special steel, seamless steel pipe, cast pipe and other fields.
steel industry profits hit a record high
Under the background of “double carbon”, the iron and steel industry timely controlled the production capacity, the steel price was relatively high, and the enterprise profit rose sharply.
Gao Xiangming, vice president of China Iron and Steel Industry Association, said on January 10 that in the first 11 months of 2021, member iron and steel enterprises realized an operating revenue of 6336.2 billion yuan, a year-on-year increase of 36.25%; The total profit was 351.7 billion yuan, a year-on-year increase of 86.46%, the best level in history; The sales profit margin was 5.54%, a year-on-year increase of 1.48 percentage points.
Tianfeng Securities Co.Ltd(601162) the research report believes that although the current real estate demand for steel has not improved significantly, it is only a matter of time for the demand to improve under the expected improvement of real estate policy. With the improvement of real estate demand, the further decline of steel inventory, the superposition of restrictions on steel production and the improvement of steel enterprises’ voice in the upstream, the profits of steel enterprises may usher in a high light moment again.
From the perspective of import and export, with the adjustment of import and export policies of iron and steel products, the steel export showed a trend of monthly volume reduction and price increase in the second half of the year, and the average export price was higher than the average import price. Data show that in the first 11 months, China exported 61.875 million tons of steel, a year-on-year increase of 26.7%; 13.267 million tons of imported steel, a year-on-year decrease of 29.6%. since August 2021, the export price of steel has been higher than the import price for four consecutive months, indicating that China’s steel import and export structure is continuously optimized.
list of institutions predicting high growth
According to the statistics of securities times · databao, since the beginning of 2022, individual stocks in the steel industry have generally performed well, with an average increase of 4.14%, outperforming the Shanghai stock index. The cumulative increase of 7 shares was more than 10%, with Xinxing Ductile Iron Pipes Co.Ltd(000778) , Zhejiang Kingland Pipeline And Technologies Co.Ltd(002443) , Citic Pacific Special Steel Group Co.Ltd(000708) leading the increase, up 24.02%, 20.73% and 15.97% respectively. Xinxing Ductile Iron Pipes Co.Ltd(000778) the limit rose last Friday. Recently, the Ministry of water resources issued the guiding opinions on the implementation of major national water network projects and the implementation plan for the implementation of major national water network projects during the 14th Five Year Plan period, and several water conservancy concept stocks and pipeline concept stocks strengthened in turn.
Among steel stocks, Pangang Group Vanadium Titanium & Resources Co.Ltd(000629) , Sansteel Minguang Co.Ltd.Fujian(002110) have announced the performance forecast for 2021, all of which are performance pre increases. According to the announcement of Pangang Group Vanadium Titanium & Resources Co.Ltd(000629) , the net profit attributable to the parent company is expected to be 1.28-1.38 billion yuan in 2021, with a year-on-year increase of 236.03% – 262.29%. The company said that during the reporting period, the company made every effort to do a good job in the connection between production and sales, achieved a significant increase in the price and sales of vanadium and titanium products year-on-year, strictly implemented cost reduction and efficiency improvement measures, actively digested the impact of the rise in the purchase price of upstream raw and auxiliary materials, deeply explored internal potential and improved profitability.
The improvement of the profits of steel enterprises has attracted the attention of institutions. According to the statistics of data treasure, 13 listed companies in the steel sector have obtained the ratings of more than 5 institutions, Fushun Special Steel Co.Ltd(600399) , Hunan Valin Steel Co.Ltd(000932) , Citic Pacific Special Steel Group Co.Ltd(000708) have attracted much attention, with 12, 11 and 10 institutions rating respectively. Among the steel stocks rated by more than 5 institutions, the growth rate predicted by the institutions in 2021 is positive year-on-year, and the growth rate of Inner Mongolia Baotou Steel Union Co.Ltd(600010) , Yongxing Special Materials Technology Co.Ltd(002756) , Baoshan Iron & Steel Co.Ltd(600019) predicted net profit is more than 100%.
According to the statistics of data treasure, since the beginning of 2022, 20 individual stocks in the steel sector have obtained the increased holdings of funds going north. In terms of shareholding growth, Hunan Valin Steel Co.Ltd(000932) , Pangang Group Vanadium Titanium & Resources Co.Ltd(000629) , Baoshan Iron & Steel Co.Ltd(600019) received the most net purchases, all exceeding 50 million shares. Last week, the month on month increase of shareholding in the steel industry ranked second in the whole industry, second only to the comprehensive industry.
(source: Data treasure)
