In the first three quarters of 2009, the company realized operating income of 2.645 billion yuan, down 47.78% from the same period last year; realized net profit attributable to the parent company-214 million yuan; equivalent to earnings per share of-0.21 yuan, of which earnings per share reached-0.60 yuan in the third quarter.
At present, the company now controls a coke production capacity of 1.75 million tons (two 550000-ton coke ovens and one 650000-ton coke oven). The 550000-ton coke oven capacity of Hongan Coking Phase II will be completed by the end of the year and is expected to be put into production at the beginning of 10 years. The utilization rate of coke business capacity of the company is 60% Mui 70%, which is in a state of break-even. The selling price of coke is basically the same as the local market price. The company's coke utilization rate is expected to remain at 60% for the whole year. The Coke Association of Shanxi Province adjusted the price of coke twice in August, tentatively setting the guiding price for September at 1850 yuan / ton, which can restore the profit of coke enterprises to about 100,150 yuan / ton and enter a reasonable profit area.
The company has a pig iron production capacity of more than 900,000 tons, and we estimate that the pig iron profit is about 100 yuan / ton, and the iron generated is mainly supplied to Xintai Iron and Steel, a related party of the company. Xintai Iron and Steel has poor profitability and is unlikely to be injected.
The company will integrate coal, coke and steel industry chain in the future. The upstream is developing in the direction of raw material coking coal. Fenxi Zhongtai, which has a 49% stake, has won the exploration rights of a coal mine with 600-700 million tons of recoverable reserves in the province, and plans to build an annual production capacity of 50-6 million tons. It is expected to get the mining rights around 2010. Fenxi Ruitai, which shares 14% of the shares, participates in the coal resources integration of Jinzhong City, and plans to integrate coal mines with an annual production capacity of 12 million tons.
In 2008, it was planned to raise funds through a rights issue to acquire Xintai Iron and Steel, a related party, but the project was temporarily shelved due to the deterioration of the steel industry in the second half of the year. The listed company may choose the opportunity to buy the steel company again. In addition, the company is building 800000 tons of fine slag powder and furnace gas to produce 200000 tons of methanol, 100000 tons of dimethyl ether and other projects. These projects are not expected to contribute revenue until two years later.
Rating and investment advice: the company's operating results may be better in the second half of the year than in the first half. As processing enterprises, coke and pig iron business are faced with overcapacity in the industry, and it is difficult to improve their operating performance in the short term. at present, the company's net assets per share is 2.63 yuan, and the corresponding share price PB value is 3.18 times, which is higher than the level of the company's historical valuation center. Give it a "neutral" rating.
