自有矿产资源丰富，拥有得天独厚的稀土、萤石等资源。通过购买白云鄂博西矿采矿权、收购包钢集团尾矿库资产、收购固阳矿山公司100%股权，公司自有矿产资源丰富。公司与包钢集团签订《排他性矿石供应协议》，由包钢集团向公司排他性供应白云鄂博原矿每年约1000 万吨。公司拥有储量巨大的尾矿库资源，稀土折氧化物储量约1382 万吨，萤石储量4392 万吨。Baogang Co., Ltd. is a leading steel company in the western region. Baogang Co., Ltd. is the world's largest rare earth industrial base and an important base for the Chinese steel industry. It is one of the largest listed steel companies in western China. Baotou Iron & Steel (Group) Co., Ltd. is the controlling shareholder of Baogang Co., Ltd., with a shareholding ratio of 55.24%. The actual controller is the Inner Mongolia Autonomous Region People's Government.
It has an annual supporting capacity of 17.5 million tons of iron, steel and materials. The company's overall equipment level has reached a world-class level, forming a production layout centered on the four “board, tube, rail and line” production lines. It has CSP, wide and thick plates, international advanced 2250 mm hot rolling and galvanizing production lines, etc., with a production capacity of 9.7 million tons; has 5 seamless pipe production lines with a diameter of 159 mm and 460 mm, with a production capacity of over 1.7 million tons; has 2 world-advanced large-scale universal rolling production lines and waste heat hardening production lines, with a production capacity of 2.1 million tons; and has 5 production lines for wire bars, strip steel, etc., with a production capacity of 3.2 million tons.
In 2022, 13.2765 million tons of iron were produced, 14.1846 million tons of steel were produced, and 13.4427 million tons of commercial billets were produced, achieving operating income of 72.172 billion yuan and tax payments of 2,731 billion yuan.
It is rich in its own mineral resources, and is blessed with rare earth, fluorite and other resources. Through the purchase of mining rights in Baiyun Ebosi Mine, the acquisition of Baogang Group tailings depot assets, and the acquisition of 100% of Guyang Mining Company's shares, the company is rich in its own mineral resources. The company signed an “Exclusive Ore Supply Agreement” with Baogang Group. Baogang Group exclusively supplies the company with about 10 million tons of Baiyun Ebo raw ore per year. The company has huge reserves of tailings depot resources, with rare earth refractive oxide reserves of about 13.82 million tons and fluorite reserves of 43.92 million tons.
Exports were one of the highlights of the steel market growth in 2023. According to data from the National Bureau of Statistics, China's net steel export volume in 2023 was 82.61 million tons, an increase of 45.6% over the previous year. Exports are one of the highlights of the growth of the steel market in 2023. Steel exports played a “critical minority” role in the balance between supply and demand in the domestic market. Among them, products that use a large amount of steel, such as automobiles, ships, and home appliances, are highly export-driven. Maintaining growth in direct and indirect exports of steel products is beneficial to the balance between supply and demand in the domestic market.
Profit forecasting and ratings. We expect the company's 2023-2025 EPS to be 0.011/0.034/0.047 yuan respectively. The company has an annual supporting capacity of 17.5 million tons of iron, steel and materials, is rich in its own mineral resources, and is blessed with rare earth, fluorite and other resources. Based on the above reasons, and referring to the company's high PE level in the past 4 years, we gave the company a PE valuation of 60 times in 2024, with a target price of 2.04 yuan. For the first time, coverage gave it a “superior to the market” rating.
Risk warning: Domestic investment growth is slowing down, overall steel production capacity is overcapacity, and energy consumption dual control policies affect the industry.
