CITIC Special Steel (000708): Special steel faucet officially unveiled outstanding performance
The company announced on October 11 that from October 11, 2019, the company was officially renamed from “Daye Special Steel” to “CITIC Special Steel”.
It is expected that net profit attributable to mothers will be realized in the first three quarters.
0 million yuan, gradually adjusted for the same period last year was 26.
69 ppm, an increase of 35 in ten years.
At the same time, the company plans to participate in Jiangyin Xingcheng Special Steel Co., Ltd.13.
Announcement of 50% equity, if the bidding is successful, the company will hold 100% equity of Xingcheng Special Steel, which will then achieve 100% control of Xingcheng Special Steel.
After the reorganization is completed, the overall purchase of the remaining shares of the special steel faucet will be perfect. Before this bid, the company purchased Taifu Investment by issuing shares, Jiangyin Xintai, Jiangyin Yetai, Jiangyin Yangtai, Jiangyin Qingtai and Jiangyin Xinfu.Xingcheng Special Steel 76.
38% and 0.
96% equity, a total of 86.
50% equity, and completed the equity transfer formalities on August 23, 2019.
After the completion of the transaction, the company realized absolute control of Xingcheng Special Steel, and at the same time realized the overall return of CITIC Group’s special steel plate to the A-share listing.
In order to acquire the remaining equity of Xingcheng Special Steel, the company plans to participate in the bidding of Xingcheng Special Steel13.
Taifu Investment is the controlling shareholder of the company. If the company’s first bid is successful, the company will realize 100% control of Xingcheng Special Steel.
The company’s 100% holding of Xingcheng Special Steel will be more conducive to the operation and management of the relevant high-quality special steel company-Xingcheng Special Steel, which will help the company’s coordinated and unified development in the later stage.
At the same time, the company officially changed its name from “Daye Special Steel” to “CITIC Special Steel” from October 11, 2019, and the special steel leader set sail.
The performance has continued to increase against the trend, giving full play to the role of resistance and becoming a domestic civil special steel leader. CITIC Special Steel has always maintained a leading domestic position in operating performance.
The company expects to achieve profit attributable to mothers in the first three quarters.
0 million yuan, followed by an increase of 35 in the 深圳丝袜会所 second half of the year.
Since the beginning of this year, due to technological upgrading, the output of the steel industry has continuously hit new highs, and steel prices and industry profits have increased significantly.
Against this background, the company’s performance has achieved a trend of counter-trend growth, the performance of anti-restructuring and the company’s business management capabilities have been perfectly demonstrated.
Investment suggestion After the company acquires Xingcheng Special Steel, the first three quarters of results are expected to increase by 35.
6%, the company’s holding subsidiary Xingcheng Special Steel gradually returns to the parent net profit performance or will change the company’s commitment to guarantee a bottom profit of 33.
We estimate that after the asset injection, the company’s net profit for the next three years will be 50.
8.9 billion, 53.
1.3 billion, 55.
8.4 billion with a price-earnings ratio of 10.
We will make the company 2019-2021 EPS by 1.
30 yuan / share, 1.
31 yuan / share, 1.
32 yuan / share is raised to 1.
71 yuan / share, 1.
79 yuan / share, 1.
88 yuan / share.
With reference to the estimated levels of Jiuli Special Materials and Yongxing Materials, and taking into account the industry’s leading premium, we calculated based on the target value of 15 times PE. We raised the target price to 25 yuan and maintained a “buy” rating.
Risk warning: there is uncertainty in the acquisition of the remaining equity, market demand is less than expected, the prices of upstream raw materials have changed sharply, and the company’s own operating risks.