Create the highest profit since listing
In the first half of 2018, the company produced 3.9577 million tons of steel, an increase of 17.2% over the same period last year, but steel production fell sharply in the first quarter due to production restrictions in the heating season. Among them, the steel output in the first quarter was only 1.6323 million tons, while the steel output in the second quarter was 2.3254 million tons, an increase of 42.5% compared with the second quarter. It can be seen that environmental protection production restrictions have greatly affected the steel output of Anyang Iron and Steel.
Due to the influence of environmental protection, the company's output decreased in the first quarter, and increased greatly in the second quarter compared with the previous quarter. Due to the impact of environmental protection restrictions in the heating season, the company's iron, steel and timber output decreased significantly in the first quarter. Environmental protection production restrictions ended in the second quarter, and the company's average monthly output of pig iron, crude steel and steel increased by 62.1%, 42.5% and 38.3% respectively in April and May compared with the first quarter. In 2018, the policy of environmental protection and production restriction will continue to be strictly implemented, the company's environmental protection level will continue to improve, and the proportion of production restriction is expected to decline.
The level of environmental protection continues to improve, but there is still room for improvement in NOx emissions from sintering machines. as of May 25, the company's sintering flue gas emission targets are stable at particulate matter ≤ 10mg / m3, sulfur dioxide ≤ 50mg / m3, nitrogen oxide ≤ 100mg / m3, particulate matter and sulfur dioxide emissions are lower than the latest / most stringent emission standards (10mg and 35mg, respectively). But the emission level of nitrogen oxides is still higher than that of 50mg/ cubic meters.
Set up a joint venture company to replace production capacity
Anyang Iron and Steel Co., Ltd. invested RMB 100 million yuan in currency, with a shareholding ratio of 40%, to set up an Anyang Zhoukou Iron and Steel Co., Ltd. to replace production capacity; the company through the establishment of a joint venture to replace production capacity will greatly reduce the company's investment and effectively reduce the company's financial pressure.
Market value of low ton steel and low PE
Until August 3, 2018, the market capitalization of listed iron and steel companies, as Anyang Iron and Steel is the first company to disclose the medium report, the PE (TTM) industry is currently the lowest, only 4.3 times. According to the calculation of steel output of listed companies in 2017, the market value of Anyang steel per ton of steel is 1454.6 yuan, and the market value of per ton of steel is relatively low.
Risk hint
Steel consumption fell sharply.