Fangda Special Steel (600507) Interim Report Performance Review: Profitability remains ahead of second-quarter profits

Fangda Special Steel (600507) Interim Report Performance Review: Profitability remains ahead of second-quarter profits

Report Summary: Incident: The company released the first half of 2019 results. The report states that the company has completed steel production and sales 207 respectively.

41, 207.

01 Initially, at least decreased by -6.

53%, -6.55%; operating income of 82.

$ 5.3 billion, maximizing net profit attributable to the parent company10.

550,000 yuan, an increase of 0 each year.

18%, -19.


  Affected by the No. 2 blast furnace explosion, the company’s production and sales volume decreased compared to last year.

In the first half of 2019, the company produced iron 163.

05 free radical, producing steel 196.

22 free radicals, production materials 197.

71 was the highest, which was a decrease of 3 compared with the same period last year.

03%, down 5.

71%, down 6.

25%; production of plate spring 9.

71 Initially, it was down 14 compared with the same period last year.


According to the National Bureau of Statistics, H1 national crude steel production and seasonal growth in 20199.

At 9%, the company’s production and sales volume has clearly seen industry growth.

At present, the No. 2 blast furnace is in the state of resuming production, and it will resume production after the safety assessment, which is expected to affect production and sales up to the end of the third quarter.

  The net profit per ton of steel increased greatly 南京桑拿网 month-on-month, and the second-quarter performance improved.

The company achieved net profit attributable to its mother in the first and second quarters.

7 billion, 5.

85 ppm, the single quarter results achieved an increase of 1 quarter.

15 billion.

  As the explosion accident occurred on May 29, it is expected to affect the output in June for about 10 seconds. Assuming that the production and sales are replaced by 113 and 94 in the first and second quarters respectively, the net profit per ton of steel is 450 yuan / ton and 630 yuan./ Ton, the profitability of ton steel in the second quarter increased by 180 yuan / ton.

  Strong cost control ability, leading in profitability industry.

In the face of a sharp rise in iron ore prices and a rise in industry costs of at least 20%, operating costs for 2019H1 have only 天津夜网 increased by 7.

56%, the operating cost per ton of steel was 2,938 yuan, and the 2,786 yuan before 2018 increased by 152 yuan per ton, which was lower than the industry average cost.

The company is located in Jiangxi, with obvious advantages in late development. The main markets are in the Nanchang area, the Changji-Jiangxi high-speed rail, and the elevated urban rail transit. The investment capacity of urban rail transit construction is huge, and the supply and demand relationship in the region is good.RMB 160 per ton, leading the industry in profitability per ton of steel.

  Financial expenses and R & D expenses have dropped significantly, and monetary funds have increased significantly each year.

The financial expenses of the company in 2019H1 decreased by 0 compared with the same period last year.

380,000 yuan, each R & D expense decreased by 29.


The company’s monetary funds are 57.

240,000 yuan, an increase of 24 at the end of 2018.

6.3 billion US dollars, mainly due to the company’s increase in the proportion of bills payable for purchases, indicating that the company’s industrial chain level has improved.  Profit forecast and investment grade: We expect the company to achieve operating income of 154 in 2019-2021.

64 ppm, 159.

91 ppm and 169.

2.1 billion; net profit attributable to mothers is 18.

5.9 billion, 18.

7 billion, 19.

99 ppm (earnings 25.

0 billion, 23.

90,000 yuan, mainly due to the rising cost of iron ore prices and No. 2 blast furnace explosion has a potential impact on production and sales); EPS are 1.

28 yuan, 1.

29 yuan and 1.

38 yuan, corresponding to PE 6.

5 times, 6 times.

4X and 6.

0X, maintain “strongly recommended” level.

  Risk reminders: 1. Significant increase in investment in fixed assets; 2. No. 2 blast furnace production restarted.