Xingang shares (600782) company comment: third quarter results weaken slightly
Performance summary: Xingang announced the first three quarters of 2019 performance report, reporting that major companies achieved operating income of 413.
24 ppm, an increase of ten years.
32%; net profit attributable to shareholders of the parent company 26.
47 trillion, down 32 a year.
96%, equivalent to 0 EPS.
83 yuan, of which earnings per share for the first three quarters are 0.
23 yuan, 0.
34 yuan and 0.
25 yuan; weaker third-quarter profit improvement: According to the company’s single-quarter steel output of about 225 euros,四川耍耍网 Xingang has achieved a net profit of 360 yuan per ton of steel, a decrease of 125 yuan from the second quarter and a slightly better profitability than the first quarter.
The company’s single quarter performance was mainly due to fluctuations in industry earnings.
We estimate that the profit declines of hot rolled, cold rolled, threaded and medium plate ton steel in the third quarter were 280 yuan, 150 yuan, 325 yuan and 290 yuan respectively. The company’s profit should be lower than the industry average.
The core reason for the decline in the industry’s profit in the third quarter was that the environmental protection and production restrictions in Tangshan and other places were lower than expected in July, which led to the obvious accumulation of the off-season. The pessimism of the industrial chain led to the serious decline in steel prices;Black goods continued to weaken, but judging from the latest released real estate data, combined with previous inventory and transaction data, the actual demand performance of steel was still good, continued to be better than market expectations, and steel price fluctuations were more affected by changes in production restrictions.And market sentiment.
In the later period, the negative sentiment of the market is gradually released. When the demand is relatively stable, the steel price may rebound again, and the industry profit will usher in a period of repair. Investment suggestions: As a large state-owned steel production enterprise in Jiangxi Province, the annual outputThe amount of steel is nearly 900 tons, of which hot-rolled, cold-rolled and medium-thick plates account for nearly 75%, which has a significant impact on the company’s profitability.
Although the supply side of the steel industry has increased significantly this year, due to the overall optimistic performance of the demand side, the difference in the industry’s profit decline is limited. It is expected that the EPS for 2019-2021 will be 1.
10 yuan, 0.
90 yuan and 1.
Taking into account that the company’s overall overall expected level is already at the expected level, reflecting the previous 四川耍耍网profit forecast, if the company’s profitability is maintained in the later period and there is room for repair, maintain the “overweight” rating; risk warning: macroeconomic growth may lead to steel demandPressure; supply side is fully released.