Ansteel (000898) 2019 Third Quarterly Report Review: Changes in the Prosperity of the Controlled Industry, Profits Decline

Ansteel (000898) 2019 Third Quarterly Report Review: Changes in the Prosperity of the Controlled Industry, Profits Decline
Investment points: The company achieved total operating income of 776 in the first three quarters of 2019.23 ppm, a reduction of 0 per year.24%; realized net profit attributable to mother 17.22 trillion, down 74 a year.88%, about the basic EPS 0.18 yuan, the performance is lower than our expectations.In the third quarter of this year, it achieved a total operating income of 265.49 million, a decrease of 1 every year.49%, net profit attributable to mothers2.97 ppm, a reduction of 87 per year.70%, a decrease of 70 from the previous month.54%. The profit is 西安耍耍网 significantly obvious.According to the data of the China Iron and Steel Association, the recovery of the company’s first three quarters to achieve steel production of iron, steel, and steel were 1930, 2041, and 1900 lengths, respectively, each time increased by 2.34%, 3.01% and 7.25%.In the third quarter, the volume of iron, steel, and volume were 633, 672, and 626, respectively, and decreased by 2 each time.10%, a decrease of 0.56%, an increase of 7.10%, a decrease of 2 from the previous month.72%, 2.29% and 0.92%.Industry overview. Steel prices improved in the third quarter compared with the second quarter. Take Shenyang’s cold rolling, hot rolling, and medium and heavy plates as examples.The average price in the third quarter decreased by 2 from the previous month.27%, 3.44% and 3.04%.Although the price of imported ore peaked 苏州夜网论坛 in early July, the average price still increased month-on-month.Under the background of the industry’s highest profit, the company achieved gross profit per ton of steel and net profit of RMB 369 and 91 in the first three quarters, respectively, which decreased by RMB 415 and 296 each, of which gross profit per ton and net profit per ton were RMB 303 and 47 in the third quarter.Each time it was reduced by 562 and 366 yuan, which was a decrease of 189 and 112 yuan respectively. During the period, the expense ratio decreased slightly.The company’s expense ratio during the third quarter was 5.48%, down from the previous month.46 averages, which decrease by 0 every year.The total of 13 was mainly contributed by the decrease in sales expenses, research and development expenses and financial expenses.Net cash inflow hit a new high since the fourth quarter of 2015.Net cash flow from the company’s single quarter operating activities in the third quarter was 25.8.3 billion, an increase of 8 from the previous month.2.7 billion, a decrease of 32 previously.5 billion; at the same time the company’s investment activities net cash replaced 9.4.4 billion, a decrease of 10 previously.6.7 billion, net cash inflows from financing activities3.820,000 yuan, so the company’s third quarter cash and equivalent increased by 20.2.1 billion, a record high since the fourth quarter of 2015. Bank acceptance bills that have not been repaid after the due date have not been provided for impairment.The company issued an announcement on August 2 stating that as of July 31, bank acceptance bills 3 held by the company.Overdue payment of USD 3.8 billion has occurred, and the same company may in the future recourse to banker’s acceptance bills4.94 ppm, the date of termination of the third quarterly report, the company’s net overdue bank acceptance bills held by the relevant financial company overdue were 8.2.5 billion.The company’s accounts receivable increased by 9 from the beginning of the year.1.3 billion, mainly because the above-mentioned unpaid bills of exchange were receivable and the company’s asset impairment losses in the first three quarters decreased by one.52 million US dollars, mainly due to the write-down of the inventory price reserve of 89 million yuan, so we believe that the company has not made provision for this part of overdue bank acceptance bills for impairment. Revise down earnings forecast and maintain “Neutral” rating.The domestic volume is the third, the product sheet helps, the structure shifts to the high end, and the raw material end has high stability.After the acquisition of Chaoyang Iron and Steel, the company’s own profit scale and capacity increased.The company’s performance is ahead of the industry’s overall earnings weakness.We lowered our profit forecast and expect net profit attributable to mothers in 2019-2021.97/18.41/16.9 billion (was 26.23/23.52/21.870,000 yuan), corresponding to EPS0.22/0.20/0.18, currently expected to correspond to PE 14 / 15/17 times, maintaining a “neutral” rating.