This report is read as follows:
The company's performance is in line with expectations. There is still some room for improvement in the company's capacity utilization rate, and the output is expected to increase significantly; at the same time, the company insists on reducing costs and increasing efficiency, superimposing its own mine advantages, profitability is expected to be significantly improved, and the company's performance is still resilient.
Main points of investment:
Maintain the overweight rating. In the past 21 years, 2022Q1 achieved revenue of 487 yuan and 11 billion yuan, up 31% and 5% respectively over the same period last year; net profit of 14.88 yuan and 11 million yuan, up 187% and 98% respectively over the same period last year, and the performance was slightly lower than expected. Taking into account the sharp increase in raw material prices and other factors, the EPS for 22-23 years is reduced to 0.26 EPS 0.27 yuan (the original 0.48 scarp 0.52 yuan), and the new 24-year EPS is predicted to be 0.29 yuan. Taking into account the rise in raw material prices to bring plate valuation adjustment, with reference to similar companies to give 22 years 10 times PE valuation, downgrade the target price to 2.60 yuan (the original 3.52 yuan), maintain the "overweight" rating.
Persisting in reducing costs and increasing efficiency, and profitability has been significantly improved. At the end of 2001, the company's asset-liability ratio was 67.12%, down 3.09 percentage points from 20 years; the rate of three fees and expenses was 7.95%, down 1.71 percentage points from 20 years; and the sales gross profit and net interest rate were 13.11% and 3.06% respectively, up 1.64% and 1.66% respectively over 20 years. The company's capital structure has significantly improved and its profitability has greatly increased. In April, 22, the company announced that it planned to invest 3.46 billion yuan to upgrade the blast furnace and sintering equipment of the department. After the completion of the project, the company's process energy consumption, production efficiency and other indicators will be significantly improved, and profitability will continue to improve.
The self-sufficiency rate of iron ore is high, and the purchasing advantage of raw materials is remarkable. The company has four mines: Huashugou Mining area, Heigou Mining area, Limestone Mine and Dolomite Mine of Jingtieshan Mine. Jingtieshan Mining Company exported 9.6065 million tons of iron ore in 21 years, an increase of 6% over the same period last year. The company's iron ore self-sufficiency rate is high, in the context of high iron ore prices, the company's raw material supply is guaranteed, and the cost advantage is significant.
There is still room for improvement in capacity utilization, and production is expected to increase in 22 years. The company's steel output in 21 years was 8.7044 million tons, a slight decrease of 49600 tons compared with 20 years. According to the announcement, the company plans to produce 10.35 million tons of steel in 22 years, which will be 19% higher than the same period last year. There is still room for improvement in capacity utilization and production in the future.
Risk hint: the progress of the equipment upgrading project is slow, and the downstream demand has dropped sharply.
