\u3000\u30 China Baoan Group Co.Ltd(000009) 32 Hunan Valin Steel Co.Ltd(000932) )
Key investment points:
In 2021, Hunan Valin Steel Co.Ltd(000932) achieved a total operating revenue of 171575 billion yuan, a year-on-year increase of 47.24%; The net profit attributable to the parent company was 9.68 billion yuan, with a year-on-year increase of 51.36% respectively. In the first quarter of 2022, the company realized an operating revenue of 40.963 billion yuan, a year-on-year increase of 6.13%; The net profit attributable to the parent company was 2.111 billion yuan, a year-on-year increase of 2.82% and a month on month increase of 10.21%. The weighted average return on net assets in the first quarter was 4.54%.
In 2021, the sales volume of Hunan Valin Steel Co.Ltd(000932) variety steel was 14.1 million tons, an increase of 1.12 million tons compared with 2020, accounting for nearly 3 percentage points. The company has 13 categories and 61 steel grades to replace "import". Among them, the output of electrical steel increased from 790000 tons in 2020 to 1.51 million tons in 2021, a year-on-year increase of 91%.
In 2021, Hunan Valin Steel Co.Ltd(000932) automobile panel company realized an operating revenue of 9.359 billion yuan, a year-on-year increase of 35.5%; The net profit was 614 million yuan, a year-on-year increase of 68%; The net profit margin of sales is 6.56%. In the first quarter of 2022, the auto panel company achieved a net profit of 225 million yuan, a year-on-year increase of 360.08%, a record high in the quarter; On the whole, the company's revenue, net profit scale and net interest rate representing profitability have reached a new high since its establishment, and the competitiveness of Hunan Valin Steel Co.Ltd(000932) auto panel business has gradually increased.
Investment suggestion: China will continue to reduce crude steel production this year, but the company's main bases are in Hunan and Guangdong, which will not be affected by pressure reduction; Subsequently, China's steady growth gradually fell to the ground, and the supply and demand of steel tended to be balanced. However, the pressure on the cost side of raw materials in the iron and steel industry has increased, and the company's gross profit margin is under pressure. Based on the above analysis, the net profit attributable to the parent company from 2022 to 2023 will be reduced by 12.9% and 16.2%; RMB 9.67 billion and RMB 10.47 billion respectively, corresponding to eps1.5 billion 40 yuan, 1.52 yuan; The net profit attributable to the parent company in 2024 increased by 11.15 billion yuan, corresponding to eps1.5 billion yuan 61 yuan Hunan Valin Steel Co.Ltd(000932) has product structure and regional advantages, and the subsequent competitiveness is expected to continue to improve. We maintain the "overweight" rating of the company.
Risk tip: the demand for steel for infrastructure, automobile, household appliances and shipbuilding in the downstream of iron and steel is significantly lower than expected, the price of raw materials rises sharply, and the company's profits decline.
