The reporter learned from the Ministry of Industry and Information Technology that the Raw Materials Industry Department of the Ministry of Industry and Information Technology convened a conference with more than 10 leading steel enterprise groups, including Baowu Group and Angang Steel Group. The conference will comprehensively understand the production and operation situation of the steel industry, thoroughly analyze the difficulties and underlying causes facing current industry development, and better promote the smooth operation and healthy development of the steel industry to facilitate subsequent formulation of relevant policies.
Orient Securities believes that from “removing production capacity” to “removing production volume,” the steel industry is facing a new round of mergers and restructuring due to gradual formation of supply rigidity and policy support. It is expected that in the future, the supply of China's steel industry may be more orderly, industry fundamentals may have improved markedly, and it is time for the steel industry to reassess its value.
At the same time, the PB (MRQ) of listed companies of general steel companies is also generally less than 1 times. Leading high-quality steel companies are underestimated, and there is room for future valuation repair.
Leading state-owned enterprises are also expected to continue to benefit from this round of mergers and restructuring and industrial restructuring with advantages such as capital and policy.
Steel industry concept enterprises:
Chongqing Iron & Steel Co., Ltd. (01053), Maanshan Iron & Steel (00323), China Oriental Group (00581), Angang Steel (00347)