Shougang (000959) issued an announcement on December 16, 2021: Xu Senzhou Tan Xing of BoCom Schroeder Fund Management Co., Ltd. investigated our company on December 15, 2021.
The main contents of this survey are as follows:Q: what are the characteristics of the company's new high-brand non-oriented electrical steel production line for new energy vehicles and its achievable loading capacity?
A: the company's new high-grade non-oriented electrical steel special line for new energy vehicles is expected to be put into production in June 2022, taking the lead in building the world's first six-stand continuous rolling mill production line of electrical steel, with a production efficiency nearly 10 times that of a 20-high rolling mill. at that time, the company can increase the production capacity of non-oriented electrical steel to 350000 tons per year, which can meet the demand for electrical steel for 4 million new energy vehicles and boost the future development of the new energy vehicle market. At the same time, it can also manufacture energy-efficient industrial motors, high-end household appliance compressors, etc., through the production of high-performance products, can further help the national carbon peak carbon neutralization policy implementation.
Q: the future development trend of new energy vehicles?
A: driven by many factors such as carbon emissions and vehicle model progress, the high-speed growth trend of medium-and long-term sales of new energy vehicles is more certain. The annual sales of new energy vehicles are expected to quickly rise from one million to ten million. At the same time, with the continuous upgrading of vehicle performance, the drive motor of new energy vehicles will develop from dual-motor to multi-motor in the future. From the prediction of motor performance, the comprehensive requirements for high-grade non-oriented electrical steel materials are getting higher and higher, and electrical steel products will develop in a more energy-saving and efficient direction.
Q: does the transformer industry forecast the demand for oriented electrical steel?
A: the "Energy efficiency limits and Energy efficiency grades of Power Transformers" was officially implemented in June 2021. In October, the proportion of secondary energy efficiency transformers in the bidding for distribution transformers of the State Grid increased significantly, driving a sharp increase in the demand for high-end oriented electrical steel. During the 14th five-year Plan period, under the guidance of the national "double carbon" strategy, the profound change of energy strategy will bring double opportunities for the market scale and structure adjustment of oriented electrical steel. According to estimates, the scale of demand is about 200000 tons / year higher than that during the 13th five-year Plan period, and the stock iteration will further expand the demand increment. At the same time, the upgrading of energy efficiency standards for transformers in China and around the world will lead to the overall upgrading of the grade of oriented electrical steel.
Q: what are the key factors that the company's third-quarter results are higher than the industry average?
A: the company has made good achievements in technology leadership, green environmental protection, market opportunities, efficiency improvement and capital operation, and its profitability has been greatly improved. (1) leading technology. The overall technology and equipment level of the company is in the forefront of the world. Shougang shares and holding subsidiaries Jingtang Company, Cold Rolling Company and Zhixin Company have all passed the national high-tech enterprise qualification certification and have strong technological innovation ability. Take the automobile plate as an example, Shougang shares is a domestic service provider with complete vehicle high-end automobile plate material solutions through independent innovation, realizing the comprehensive supply of the top 10 automobile enterprises in the country, and the automobile plate completed 1643 certifications in the first three quarters. For the first time in China, zinc-aluminum-magnesium materials successfully switched galvanized side enclosure panels, breaking the monopoly of galvanizing. In terms of electrical steel, the dimensional accuracy and composition control have reached a world-class level, and the company has fully mastered the core manufacturing technology of low-temperature and high magnetic induction oriented electrical steel, ranking among the world's first echelon of transformer material suppliers. (2) Green environmental protection. Qian Iron and Steel Company and Jingtang Company are A-class enterprises with environmental performance, forming the first-mover advantage of environmental protection, implementing independent emission reduction, and ensuring the stable and smooth operation of production. (3) seize the market opportunity. Refine the profitability analysis, build a "cost-price-profit" management and control model; dynamically adjust production line resources to increase production benefits of better products. (4) improvement of efficiency. Jingtang Phase II in one step in the Jingtang Company without new personnel, to achieve the production line to achieve output and efficiency. The MCCR production line was put into production in December 2020, rapidly reflecting its advantages of high efficiency and thinning of products. (5) promote the operation of capital. In July this year, the company completed the project of issuing shares to purchase assets and supporting financing. Shougang directly held an equity stake in Jingtang Company from 51% to 70.1823%. Together with the equity held indirectly through the Steel Trade Company, it held a total of 85.39% equity in Jingtang Company. The high-quality equity and production capacity of listed companies has increased, and their sustainable profitability has been further enhanced.
Q: how long is the certification cycle of high-grade non-oriented electrical steel for new energy vehicles?
A: the certification process of materials for new energy vehicles is long, which mainly includes four stages: material certification, motor certification, engineering certification and loading test. The certification cycle is 3-7 years. Shougang Electrical Steel has been sharpened for ten years, and the distribution of non-oriented electrical steel products for new energy vehicles has been in advance since 2015. at present, the customers covering the world are supplied in bulk, providing quality products and services for global new energy vehicle manufacturers.
Q: can amorphous products replace oriented electrical steel?
A: at present, among the core materials used in the manufacture of transformers, oriented electrical steel accounts for more than 95%, and the application of amorphous products is relatively small, which is mainly used in some distribution transformer products. The characteristics of amorphous products are relatively clear, and the advantages: the loss of amorphous materials is lower than that of oriented electrical steel, so it is suitable for transformers with high energy efficiency and relatively low stability requirements. Disadvantages: first, the amorphous material itself is brittle, which leads to the difficulty of processing and manufacturing; in the case of voltage instability and vibration of the transformer, the unstable operation of the transformer may occur; second, the amorphous material belongs to metastable materials. the stability of long-term operation needs to be tested. From the current use, amorphous products can be used in the production of distribution transformers under specific scenarios and conditions, but can not replace oriented electrical steel products.
Shougang shares main business: iron and steel smelting, steel Calendering processing.
According to the third quarterly report of Shougang shares in 2021, the company's main income was 99.59 billion yuan, up 81.95% from the same period last year; the net profit was 5.824 billion yuan, up 400.69% from the same period last year; and deducting 5.792 billion yuan from non-net profit, up 422.06% from the same period last year. Among them, in the third quarter of 2021, the company's main income in a single quarter was 36.212 billion yuan, up 69.56% over the same period last year; and the net profit in a single quarter was 2.39 billion yuan, up 273.51% over the same period last year. The non-net profit in a single quarter was 2.373 billion yuan, up 274.61% from the same period last year; the debt ratio was 70.25%, the investment income was 209 million yuan, the financial expenses were 1.752 billion yuan, and the gross profit margin was 12.24%.
In the last 90 days, the stock was rated by two institutions and two by buy ratings; in the past three months, the net inflow of financing was 68.3329 million, and the financing balance increased; the net outflow of securities was 3.3523 million, and the balance of securities lending decreased. According to the Securities Star valuation analysis tool, Shougang (000959) good company has a rating of 3.5 stars, a good price rating of 3 stars, and a comprehensive valuation rating of 3.5 stars. (rating range: 1-5 stars, up to 5 stars)