Baoshan Iron & Steel Co.Ltd(600019) q1 profit improved month on month, and silicon steel products accelerated

\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 019 Baoshan Iron & Steel Co.Ltd(600019) )

Events

The company released its 2021 annual report and the first quarterly report of 2022 on the evening of April 28. In 2021, the company achieved a revenue of 364349 billion yuan, a year-on-year increase of 29.42%; The net profit attributable to the parent company was 23.632 billion yuan, a year-on-year increase of 86.15%. In the first quarter of 2022, the company achieved a revenue of 85.98 billion yuan, a year-on-year increase of 3.78%; The net profit attributable to the parent company was 3.732 billion yuan, a year-on-year decrease of 30.41%.

Commentary

Q1 performance improved month on month. In 21 years, the company sold 46.571 million tons of commodity blank materials, an increase of 1.3% at the same time; The gross profit margin of steel products was 13.6%, with an increase of 2pcts; The profit per ton of steel was 641 yuan, an increase of 88.8% at the same time; The sales volume of advantageous products was 12.446 million tons, an increase of 16.5% at the same time; The R & D expenses increased by 29.6% at the same time, mainly invested in the R & D of cold rolling, silicon steel and other production lines. 22q1 company actively responded to the impact of epidemic situation, raw material price rise and other factors, achieved 11.116 million tons of commodity blank sales, the net profit attributable to the parent company increased by 82.76%, and the profit improved significantly month on month. In 22 years, the company plans to sell 49.75 million tons of commodity blank materials, an increase of 6.8% at the same time.

Technological innovation, low-carbon transformation, continuous cost reduction and efficiency increase. In the past 21 years, the company launched 13 products represented by b23hs075 heat-resistant scoring products in the world. In February, the construction of one million ton hydrogen based shaft furnace of zero carbon demonstration plant in Zhanjiang base of the company was started, and it is expected to reduce carbon dioxide emissions by more than 500000 tons per year; China's first 4000 cubic meter blast furnace hot blast stove flue gas purification device has been completed and put into operation in Baoshan base. Baoshan and Dongshan bases do not leave the factory with 100% solid waste. Focusing on energy cost reduction and optimization of coal and ore blending structure, the company carried out standard deviation detection in an all-round way, reduced the cost by 1.15 billion yuan in 21 years, and exceeded the annual target.

Breakthroughs have been made in the market development of silicon steel products. The company accelerated the batch application of the top grade of oriented silicon steel in the new level of energy-efficient transformers. The orders of Q1 oriented silicon steel increased by 15.4% at the same time, of which the orders of the top grade increased by 176%. The sales volume of non oriented silicon steel for new energy driven motor of Q1 company hit a record high, of which the sales volume of Qingshan base increased by 157%. The non oriented silicon steel product structure optimization project of Baoshan base is planned to be commissioned at the end of February 23; The structural optimization (second step) project of oriented silicon steel products has been approved and the preliminary design has been carried out.

Profit forecast & investment suggestions

Considering the impact of the epidemic on production, the net profit attributable to the parent company in 22-23 years is reduced by 21% and 21% respectively. It is estimated that the net profit attributable to the parent company in 22-24 years is 25.195 billion yuan, 25.767 billion yuan and 26.385 billion yuan respectively, corresponding to EPS of 1.13 yuan, 1.16 yuan and 1.19 yuan respectively, and corresponding PE of 6 times, 5 times and 5 times respectively. Maintain the "overweight" rating.

Risk tips

Policy promotion is less than expected; The price of raw materials continued to rise higher than expected; Zhanjiang blast furnace was put into operation less than expected.

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