Fangda Special Steel (600507) Interim Review: Production Accidents Affect Production, but Performance Still Increases MoM

Investment Highlights The company released its 2019 Interim Report: the company achieved revenue 82 in the first half of the year.

5.3 billion, an increase of 0 a year.

18%, realizing net profit attributable to mother 10.

55 ppm, degraded ten years ago.


Among them, 2019Q2 achieved revenue of 43.

1.7 billion, an increase of 9 from the previous month.

67%, net profit attributable to mothers5.

8.5 billion, an increase of 24 from the previous month.


When the company’s No. 2 blast furnace ceased production in June, Q2’s net profit attributable to mothers still achieved a month-on-month increase of more than 24%, which resulted in the company’s Q2 steel production and sales still growing slightly.

73 budget / 105.

20 brackets, Q1 +3 respectively.

98% / + 3.


At the same time, the second quarter benefited from the still strong demand for land, the demand continued to be rapidly digested in the high season under high production, the supply and demand pattern was better, and the long products profitability improved overall.

We calculated that the average unit price of the company’s Q2 steel business was 3816.

28 yuan / ton, an increase of 174 from Q1.

24 yuan / ton, Q2 steel business average gross profit of 977 tons.

87 yuan / ton, up 80 from Q1.

60 yuan / ton.

In particular, although we estimate that the gross profit per ton of rebar in the industry has fallen significantly since July, the premium of Jiangxi rebar to Shanghai has continued to rise since the low point in late April, and the company’s Q3 steel profit level can still be expected.

In terms of expenses, although the equity incentive expenses accrued in the first half of the 四川耍耍网 year were higher than the same period last year1.

96 billion, but the staff budget of managers in the same period decreased by 1 compared with the same period last year.

59 billion, so management costs only increase slightly by 3 per year.


Benefiting from the high prosperity of the iron ore industry, the production and sales of iron fines business increased significantly, and the scale of revenue far exceeded the last year.

  The company’s extractive industry in 2019H1 achieved an output of 39.

52 seconds, sales 42.

48 samples, realized operating income2.

85 ppm was the highest income of 3 last year.

85 times, the estimated unit price is 670.

14 yuan / ton, an increase of 56 over the same period last year.

10 yuan / ton, gross profit per ton is 433.

23 yuan / ton, 58 higher than before last year.

74 yuan / ton.

Considering that the suspension of No. 2 blast furnace affects the company’s steel 杭州桑拿 output, the company’s profit forecast is lowered, and the net profit attributable to mothers is expected to be 21 in 2019-2021.

500 million, 23.200 million and 26.

7 trillion, EPS is 1.

48 yuan, 1.

60 yuan and 1.

85 yuan, corresponding to the current total (August 15) PE is 5 respectively.

6 times, 5.

2 times and 4.

5 times, maintaining the company’s “prudent overweight” rating.

  Risk prompts: steel prices continue to fall; downstream demand is accelerating faster than expected; raw material prices are rising; automotive steel plate downstream market demand continues to be sluggish; rebound flat steel market competition is intensifying