Nangang Iron & Steel (600282) Quarterly Report Comment: The impact of raw material costs exceeded the fourth quarter to try to stabilize

Nangang Iron & Steel (600282) Quarterly Report Comment: The impact of raw material costs exceeded the fourth quarter to try to stabilize

On the evening of October 30, the company announced the third quarter report of 2019.

At the core of the report, the company achieved profit attributable to the mother23.

75 ‰, 30 years ago.

90%; realized basic income of 0.

5368 yuan / share, 30 for ten years.

96%.

The company achieved net profit attributable to its mother in the third quarter5.

3.4 billion, down 46 from the second quarter.

81%.

  The sales price of finished products has dropped and the cost of raw materials has increased. The company’s third-quarter results are expected to be obvious. The company’s main products are plate and bar.

Since the beginning of this year, the company’s finished product sales prices have continued to decline, and the average value of the CSPI steel price index has changed by 108.

82, down 5 every year.

99%; among them, the average domestic plate price index is 111.

17, a decline of 8 per year.

53%.

According to the company’s quarterly report, the company’s comprehensive average bid for steel products in the first three quarters was 3,997.

90 yuan, down by 1 every year.

46%; resulting in an average plate thickness of 4,188.

18 yuan, an annual increase of 1.

04%.

With the decline in the sales price of finished products, the cost of raw materials continued to rise: the Platts 62% iron ore index increased by 37.

93%; Huaibei main coking coal price increased by 5 year-on-year.

60%; Tangshan first-class coke prices fell by 5 year-on-year.

73%.

Rising raw material prices have caused the company’s operating costs to increase significantly in the first three quarters.

31%. The cost and sales price of the combined company decreased, which affected the company’s third quarter profit to a certain extent.

According to the quarterly data, the first three quarters achieved operating income of 367.

31 ppm, an increase of 9 in ten years.

18%; net profit attributable to shareholders of listed companies23.

75 trillion, down 30 a year.

90%.

  Iron ore prices in the fourth quarter may gradually expand in a narrow range. The company is expected to gradually expand and stabilize the company. In the first three quarters of this year, due to the growth of steel product sales and trading business, the company’s operating income can still be achieved under the pressure of steel sales prices.

18% increase.

In addition, the company’s output increased in the third quarter, and its main sheet and bar production increased respectively.

29% and 16.

93%.

Since July, iron ore prices have gradually entered a downward cycle. We believe that the company’s iron ore costs in the fourth quarter may change around the price center of US $ 90 /杭州桑拿网 dry ton, which is lower than the third quarter.

And this year’s long-term scrap price changes of 2300 yuan / ton-2500 yuan / ton price changes, or will play a certain role in supporting the spot price of steel.With the growth of the company’s production and sales volume and trading business, we think the company’s fourth-quarter results are expected to gradually stabilize.

  Given an “overweight” rating this year, the price of raw materials such as iron ore has increased, increasing the company’s operating costs, while the decline in the sales price of ordinary steel has intensified the company’s product profits.

The combined company’s third-quarter performance was lower than expected, and we believe that the company’s performance may be affected to some extent.

Therefore, we will change the company’s EPS for 2019-2021 西安耍耍网 from 0.

97 yuan / share, 0.

98 yuan / share, 1.

02 yuan / share adjusted to 0.

67 yuan / share, 0.

71 yuan / share, 0.

80 yuan / share, adjusted the rating from “buy” to “overweight”.

  Risk reminder: The demand side is less than expected, and the prices of upstream raw materials fluctuate sharply.