Anshan Iron and Steel Co., Ltd. is a holding subsidiary of Angang Group, mainly engaged in the production and sales of iron and steel products, supporting a relatively complete logistics, trade, steel processing service industry chain. The company has Anshan, Yingkou, Chaoyang three major production bases.
The company's profits increased significantly in 2021: the company recently announced that the company's annual operating income was 136.7 billion yuan (RMB, the same below), an increase of 35.5% over the same period last year, and the net profit was 8.9 billion yuan, an increase of 271.2% over the same period last year. The net profit after deducting non-return is about 6.9 billion yuan, an increase of 250.1% over the same period last year, and the gross profit margin is 9.7%, an increase of 3.16% over the same period last year. The basic earnings per share is 0.74 yuan, and the company plans to pay a dividend of 2.21 yuan for every 10 shares.
Production capacity was basically the same as that of the previous year, and rising prices led to an improvement in performance: in terms of production capacity, the company produced 25.35 million tons of iron in 2021, down 2.01 percent from the same period last year, 26.47 million tons of steel, 0.04 percent less, and 24.8 million tons of steel, an increase of 0.94 percent over the same period last year. Sales of steel were 24.4 million tons, down 0.85% from the same period last year. Steel product prices rose sharply in the second quarter driven by commodity prices, followed by energy consumption double control and other capacity constraints, making steel product prices continue to fluctuate in the high range. Driven by this, the company's profits increased significantly.
Rich in strategic resources and technical advantages to ensure long-term development potential: the company has 8.8 billion tons of iron ore resources, annual mining and stripping capacity of 280 million tons / year, mineral processing capacity of 6500 million tons / year, iron concentrate production capacity of 2200 million tons / year, ranking first in China.
The proportion of iron ore purchased by the company is more than 60%, and the coke is basically self-sufficient. Rich resource reserves and production capacity ensure the long-term development of the company. At the same time, the company's product technology is in a leading position in the industry. During the year, the company successfully realized the localization of products such as low-temperature shipbuilding and marine steel in the base, while low-cost blast furnace ironmaking technology, rapid selection technology of coking coal and converter ultra-clean steel production technology all reached the domestic advanced level. With the arrival of the peak season, the downstream manufacturing industry is gradually recovering and the number of future starts continues to increase, the company's product demand will gradually expand, which is expected to support the company's future performance.
Investment suggestion: the company is driven by the rise in product prices in 2021, and its annual performance is outstanding. The company is rich in resources, and has the advantages of technology and scale, so it is recommended to buy at a bargain.