Event: the company released its annual report for 2010 and quarterly report for 2021, with operating income of 54.694 billion yuan, an increase of 12.49% over the same period last year, and net profit of 1.719 billion yuan, down 26.63% from the same period last year. In the first quarter of 2021, the operating income was 17.609 billion yuan, an increase of 64.77% over the same period last year, and a net profit of 664 million, an increase of 303.62% over the same period last year.
As of December 31, 2020, the output of iron, steel and steel had reached 13.71 million tons, 15.3 million tons and 9.62 million tons respectively, up 10.03%, 11.92% and 18.91% over the same period last year.
The fourth quarter of last year improved month-on-month, and profits rose sharply in the first quarter of this year. The net profit of homing in the fourth quarter of 2020 was 483 million per quarter, an increase of 4.3 per cent over the third quarter. The net profit of homing in the first quarter of 2021 was 664 million, a sharp increase of 303.62 percent over the same period last year, and the gross profit margin and net profit margin were 12.28 percent and 4.93 percent, respectively, up 6.12 and 3.39 percentage points from the same period last year. The company's overall production and marketing operation is sound, with an output growth rate of 18.89% in 2020, a sales growth rate of 19.99%, and steel sales revenue growth of 13.03%, which is higher than the 10.86% growth rate of key steel enterprises in the industry.
The company has completed the capital increase of Guangxi Iron and Steel, and the product diversification and location advantages are expected to be further highlighted. Guangxi Iron and Steel has a superior geographical location, cash equipment and complete supporting facilities. after running-in and reaching production, the overall technical assembly level will be greatly improved, and the company's product line will be further expanded. the new products are positioned as high-grade automobile panels and high-grade household appliance panels, with world-class production technology and leading cost control in the country. In addition, after holding Guangxi Iron and Steel, the company will have its own production base in Fangchenggang, an important hub port in southwest China, and its production coordination capacity is expected to be further strengthened, while reducing production costs and logistics costs, and improving the rate of return on investment. the company's core competitiveness will be further enhanced.
Focusing on energy conservation, comprehensive energy consumption has been greatly reduced, which is in line with the national development background of "carbon neutralization". The company has made every effort to promote energy saving and green clean production, and has completed six ultra-low emission transformation projects such as flue gas desulfurization and denitrification throughout the year, and four energy saving and emission reduction projects under construction, which have been successfully selected as the fifth batch of "green factories" by the Ministry of Industry and Information Technology. The company makes efforts from the three energy-saving directions of management, technology and structure, constantly strengthening energy management, optimizing resource allocation, increasing scrap use, reducing hot metal consumption, popularizing new energy-saving technologies, and further increasing spontaneous electricity. In 2020, the total energy consumption of this department is 7.5826 million tons of standard coal, the comprehensive energy consumption per ton of steel is 534.21 kilograms of standard coal, and the total energy consumption of iron and steel in Guangxi is 844700 tons of standard coal. Comprehensive energy consumption of 577.19 kg of standard coal per ton of steel.
Investment suggestion: the company is the core subsidiary of the 50 largest steel companies in the world, Liugang Group, constantly improving the business structure, fine control, quality improvement and efficiency, is expected to maintain a sound operation. It is estimated that the EPS from 2021 to 2023 is 1.61,1.68,1.77 respectively, and the corresponding PE is 4.47,4.28,4.07 respectively.
Risk hint: steel demand has fallen sharply and raw fuel prices have fluctuated sharply.