Fangda Special Steel (600507) 2019 First Quarterly Report Review: Performance Exceeds Expectations, Typical Cost Advantages of Private Enterprises Highlight
Investment Highlights: Maintain “Overweight” rating.
The company achieved operating income of 39 in 2019Q1.
3.6 billion, rising by 1 every year.
90%; net profit attributable to mother 4.
700 million, down 15 every year.
63%, the company’s performance exceeded expectations.
New real estate starts in 2019 are strong, infrastructure is picking up, cars are bottoming out, steel demand is low and high, the company ‘s performance will continue to pick up, and the company ‘s EPS for 2019-2021 will be 1.
44 yuan, estimated 13 times for the company 四川耍耍网 in 2019, raised the company’s target price to 17.
55 yuan, maintaining the “overweight” level.
The sales volume remained high in the first quarter, and the gross profit per ton of steel was high.
The company’s steel sales in the first quarter of 2019 were 101.
81 for the first time, slightly downgraded by 1.
71 Nominally, it remained high overall.
In the first quarter of 2019, the average sales price of the company’s steel was 3866 yuan / ton, and the gross profit per ton of steel was 1,008 yuan / ton.Gross profit and net profit remained relatively high, far exceeding the industry average.
It is expected that steel demand will be low before high in 2019, and the company’s profitability will continue to rise.
During the period, expenses remained low and cost advantages were prominent.
The three charges per ton of steel for the company in Q1 2019 were 391 yuan / ton, which continued to rise by 40 yuan / ton, and the expenses during the period were 10.
1%, rising by 1 every year.
The cost of 23 units is 2858 yuan / ton.
In the first quarter of 2019, due to the decline of the industry cycle and the strength of cost-side iron ore, the company has excellent cost control capabilities, prominent cost advantages, and still maintains profitability.
Demand is low before high, and the company’s performance may continue to grow.
New real estate starts in 2019 surpassed market expectations, and overall remained strong.
In the context of the continued advancement of special bond issuance and the positive national infrastructure policy, infrastructure investment will continue to pick up in 2019.
The production and sales of automobiles picked up significantly in March, and the industry basically entered the bottom-building stage.
In 2019, the demand for steel is low before high, and the company’s performance will continue to pick up.
Risk warning: the macro economy is accelerating to decline; the supply side rises more than expected.