Xingang shares (600782): Annual report performance is dazzling and profit hits record high
Event: The company released its 2018 annual report: in 2018, it achieved revenues of 57 billion yuan, 59.
50,000 yuan, an increase of 14 in ten years.
The basic benefit is 1.
85 yuan, it is proposed to distribute a cash dividend of 2 yuan for every 10 shares.
Investment points: Production and operation in 2018: The company gradually realized steel production and sales volume of 888 vertical, 891 vertical, long-term growth3.
26%, the sales volume reached a record high, of which the main products of cold rolling, hot rolling achieved sales of 175.
Reporting information, the company completed pig iron 903.
56 Cobalt, Steel 893.
17 cobalt, steel billet 843.
54 is the highest, increasing output by 3 each year.
In terms of profitability, the main products have a gross profit margin of 18 for coils (cold rolled, hot rolled), thick plates, medium plates, and wire rods.
47%, an increase of 4 over the previous year.
11 points, 9.
39 points, 8.
51pct, the company’s comprehensive gross profit margin increased by 3.
In 2018, the company’s ton steel residual amount, ton steel cost, and ton steel net profit were 4,269 yuan / ton, 3511 yuan / ton, 757 yuan / ton, and gradually increased by 451 yuan / ton, 195 yuan / ton and 256 yuan / ton.
Cost reduction and main financial indicators: the company’s performance increased, and its profits increased 66.
400 million and a record high.
In terms of business management and control, the total revenue of the three expenses and R & D in 2018 decreased by 0 compared with the previous year.
3 points to 2.
2%, which is a better level in the industry.
Resistivity decreased by 5 from the beginning.
1%, the effect of deleveraging is more significant.
”Double supply and demand”, 2019 profit or better than expected.
Due to the general decline in commodity prices at the end of 2018, weaker demand and improved production restrictions, the market at the beginning of the year showed loose supply to the trend of the steel industry in 2019, weak demand, and prices continued to decline pessimistic expectations with the PMI.
However, downstream demand as a whole showed good performance after the holiday. Infrastructure investment was determined with a positive financial rebound, land construction was accelerated, and first- and second-tier sales also rebounded. Automotive demand for steel in the manufacturing industry gradually stabilized and rebounded, and home appliances maintained better substitution.The demand for steel from construction machinery has maintained a high level of prosperity, and the overall industry trend is “double supply and demand.”
Although it is difficult for industry product prices to return to the high point of the third quarter of last year, the economic recovery in the first quarter exceeded expectations, and downstream demand has shown expected growth. In the second quarter, steel companies may be better than market expectations.
Maintain overweight rating.
The company’s expenses are well controlled and its profitability is excellent. Since the power generation project is put into operation, there is still room for costs to fall.
Regardless of the commissioning of self-generation projects for the time being, it is expected that the company’s EPS for 2019-2021 will be 1.
30 yuan, corresponding to PE 4.
12 times, maintaining the overweight rating.
Risk warning: The macro economy is lower, and downstream demand is less than expected; the prices of iron ore, the raw materials of major products, have 都市夜网 risen sharply;