Index
On April 25, 2022, the Shanghai Composite Index closed at 292851 points, down 5.13%; The Shenzhen composite index closed at 1037928 points, down 6.08%; The nonferrous metals industry index closed at 427257 points, down 8.45%. The companies with the top three declines are: Hootech Inc(301026) , Dongguan Eontec Co.Ltd(300328) , and Guangzhi technology. The steel industry index closed at 237143 points, down 7.00%. Among them, 6 stocks fell by the limit, including Inner Mongolia Eerduosi Resources Co.Ltd(600295) , Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) , Shandong Jinling Mining Co.Ltd(000655) , etc.
Comments
Nonferrous Metals led the decline. Internationally, the Fed's expectation of raising interest rates is further strengthened. With the further strengthening of the US dollar, industrial metals are under relative pressure, and there are changes in the sector today. However, on the whole, the recovery in the middle and lower reaches of the market outlook is expected to occur, mainly due to the guidance of China's macro policies and the improvement of subsequent fundamentals. Specifically, "industrial operation monitoring report (I) in the first quarter of 2022" points out that the rising price of raw materials and high shipping costs continue to put pressure on the profits of midstream and downstream enterprises. In order to stimulate consumption, the central bank and the China Banking and Insurance Regulatory Commission jointly held a symposium on financial support for the real economy to further promote the promotion fee policy. Generally, with the emergence of future consumption growth, the middle and lower reaches of industrial metals may pick up. At present, the price of industrial metals has basically remained high and fluctuated, and the price of small metals has fallen slightly. When judging from the market transaction, the market transaction is becoming more and more active, and the future price is expected to rise. Related objects: Henan Shenhuo Coal&Power Co.Ltd(000933) , Tianqi Lithium Corporation(002466) , Shenghe Resources Holding Co.Ltd(600392) .
Steel sector fell ahead. The steel sector has retreated significantly in recent trading days. However, we still maintain the previous view that the valuation of the steel sector is low and basically good. The current decline is only a short-term capital game, and the steel sector is already at a relatively bottom. On the cost side, the cost advantage of steel raw materials is gradually reflected. With the continuous stabilization of coking coal and coke prices, the profit side of the steel industry will usher in the stage of bottom rebound. In terms of supply and demand, China's crude steel industry is expected to continue to improve year-on-year growth in 2022. At present, the valuation of Pugang sector is at the low level since 2013. We think the sector has good attraction. Related objects: Hunan Valin Steel Co.Ltd(000932) , Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) , Fushun Special Steel Co.Ltd(600399) .
Industry dynamics
On April 25, China Iron and Steel Industry Association held an information conference. It was revealed at the meeting that the operation of the steel industry was generally stable. In the first quarter, the operating income of member steel enterprises was 1499.3 billion yuan, a year-on-year decrease of 3.26%; Profits and taxes reached 82.9 billion yuan, a year-on-year decrease of 19.66%; The total profit was 55.3 billion yuan, a year-on-year decrease of 25.8%. (China Securities Network)
Company dynamics
Anyang Iron & Steel Inc(600569) ( Anyang Iron & Steel Inc(600569) ): the announcement said that the net loss in the first quarter was 543 million yuan and the profit in the same period last year was 206 million yuan. （Wind）
Risk tip: the macro-economy is less than expected and geopolitical risks are escalating.
