Event: the company reported that in the first half of the year, the company realized operating income of 9.867 billion yuan, an increase of 34.12% over the same period last year, and a net profit of 1.477 billion yuan, an increase of 79.84% over the same period last year. Among them, in the second quarter, the company realized operating income of 5.826 billion yuan, an increase of 39.59% over the same period last year, and realized a net profit of 924 million yuan, up 68.07% over the same period last year.
In the second quarter, the company's operation and production continued to operate steadily: in the second quarter, the company's steel production and sales volume were 118.13 and 1.1664 million tons respectively, with year-on-year changes of + 4.43% and-1.23% respectively; iron concentrate production and sales volume were 18.4% and 184000 tons respectively, with year-on-year changes of + 6.3% and + 103.31% respectively. In the first half of the year, the company's steel production and sales were 206.18 and 2.0561 million tons respectively, with year-on-year changes of-4.1% and-0.59%, while iron concentrate production and sales were 33.79 and 337900 tons respectively, with year-on-year changes of + 23.64% and + 76.91%.
During the period of the company, the expense rate continued to decline: in the second quarter, the company's sales, management and R & D expenses were 0.33,1.76 and 16 million yuan respectively, an increase of 3.13%, 18.12% and 23.08% compared with the previous quarter, but the company's operating income increased by 44.14%. The financial expenses were negative for 15 consecutive quarters, and the expense rate during the company period was only 3.26%, a decrease of 0.2 percentage points. It fell for the second consecutive quarter and was at an all-time low.
Adhere to the prosperity of the "Putter combination" overlay industry, and the gross profit per ton of steel exceeded 1,000 yuan in the second quarter: the company continues to optimize the product structure, consolidate superior varieties, develop Putter products with market capacity, and continue to implement the flattening strategy. continue to improve brand quality and improve overall profitability and market competitiveness. The prosperity of the superposition industry continued to pick up. In the second quarter, the gross profit per ton of steel products of the company reached 1058 yuan, a sharp increase of 32.69% over the same period last year.
Benefiting from the region and product structure, the company's steel products are expected to increase in both volume and profit in the second half of the year: from January to June 2021, the output of crude steel in Jiangxi is 12.97 million tons, an increase of 1% over the same period last year. According to the calculation that the output of Jiangxi in 2021 is the same as that in 2020, the crude steel output in the second half of the year decreased by 0.89% compared with the same period last year, and the pressure to reduce production is small. From January to June of 2021, the crude steel output of non-key steel enterprises increased by 27.32% compared with the same period last year, which is much higher than that of key steel enterprises. As the main products of non-key steel enterprises are mainly long products, we judge that the reduction of crude steel production in the second half of the year may have a greater impact on long steel products. As the reduction pressure in the company's own region is smaller, and the supply contraction of long products is expected to be stronger in the second half of the year, the superimposed company has obvious cost advantages. Its own steel products are expected to achieve both volume and profit.
Profit forecast, valuation and rating: the crude steel output in Jiangxi Province, where the company is located, decreases slightly in the second half of the year, and the supply side of the main products is expected to contract more strongly in the second half of the year. Fangda's special steel products are expected to achieve volume profit recovery. We maintain the profit forecast. The company's homing net profit from 2021 to 2023 is expected to be 27.86,28.5 and 2.907 billion yuan, corresponding to 1.29,1.32,1.35 yuan respectively. Maintain the "overweight" rating.
Risk hint: the demand for long wood has fallen sharply; the implementation of crude steel production reduction is not as strong as expected.