Shougang shares in the profit decline in 09 year extension to continue to expand
Shougang shares in 2009 achieved revenues of 22.788 billion yuan, down 7.04%; net profit of 368 million yuan, down 10.44%. In the fourth quarter, the company achieved operating income of 6.022 billion yuan, up 38%; to achieve operating profit -1.04 billion in the fourth quarter of 2008, reduced losses and 141 million yuan.
Shougang steel price changes that affect the performance of the main factors. Everbright Securities researcher Cheng Gao believes that this year, rising prices of raw materials such as iron ore and coking coal, steel prices are expected to play against a strong impetus. In addition, Shougang Group Shougang Iron and Steel shares as assets, integration platform, the controlling shareholder of assets into the commitment period is approaching, is expected to continue to receive high-quality steel assets into the Group, the company will gradually be optimized product structure.
Steel prices drag down performance
Shougang's steel last year, the average price of an integrated down 23.89% year on year, consolidated gross profit margin of steel products dropped 0.86 percentage point to 4.10%. The annual reports of the shares owned subsidiary of Shougang Beijing Shougang Co., cold-rolled sheet loss of 2,802 million for the year Yuan, gross margins were -0.60%. In addition, the company's chemical products are also a loss of 127 million.
After deducting non-recurring gains and losses, net profit was 247 million yuan Shougang, down 48.49% .2009-year changes in fair values and investment income in the company's pretax profit in the accounting were as high as 24%, 39.27%. Held by the company TISCO stainless steel, etc., some stock prices rebound effect of changes in fair value of the company last year, a substantial increase in profit or loss; while net investment income was mainly from BAI, Tsinghua Solar energy dividend.
However, since February of this year, steel prices stabilized rebound. Analysts pointed out that on the one hand to the stock of domestic steel pressure on steel prices have inhibited; the other hand, rising raw materials such as iron ore and coking coal prices, steel prices play a stronger role in promoting. Minmetals Investment Company Senior Fellow Lee would like to think that, due to the profitability of steel space has been at the bottom of a new period of market turbulence is expected steel prices to rise next.
Assets worth looking into
Since 2007, the relocation program has been established, Shougang's production capacity is gradually compressed to the current 400 million tons. Meanwhile, Shougang Corporation is the controlling shareholder of the company accelerated the pace of the integration of production outside the province. Cheng Gao believes that Shougang Group's shares is expected to continue to receive high-quality assets into the steel.
For some time, Shougang frequently around the country looking for suitable acquisitions. In 2009, Shougang to 500 million yuan in Shanxi Changzhi Iron and Steel Company acquired 90% stake, into the Northwest market; the same time, they acquired the Water City of Guizhou Shougang Iron and Steel (Group) Co., Ltd. and Guiyang Special Steel Co., Ltd., which hit into the Southwest market.
Report shows that the future will have Shougang Qinhuangdao Shougang Plate Mill of Shougang Iron and Steel Company Qian'an, Shunyi Caofeidian and four cold-rolled sheet production base branch, Shanxi, Guizhou, long steel and water are two long products of steel production base.
It is understood that last year failed to be re-built Dragon Group Jilin Tonghua Iron and Steel Group, Shougang will fall into the hand. It is learned from the "General Steel case", the domestic steel enterprises have gathered in several attempts through the acquisition of steel, in addition to outside Shougang, which has long-established local enterprises such as Anshan Iron and Steel. But ultimately Shougang steel workers obtained through the trust. Market participants think that, if not unexpected, then, Shougang will be the acquisition through steel.
Shougang Chairman Zhu Jimin, China Steel Association in 2010, said the Council this year, Shougang Corporation will achieve 180 billion yuan of sales income. Heavy Industries, a subsidiary of West Beijing Shougang Beijing will be an important production base for auto parts. Shougang iron and steel products in the field in addition to the good of the wire, the Zhu Jimin also revealed that this area will be embarked on silicon, "We will develop handicrafts oriented silicon steel claimed."
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