Nangang Iron & Steel Co., Ltd. (600282) 2018 Annual Report Comment: Profits Reach History’s Best and Best Continuous High Dividend Expectations

Nangang Iron & Steel Co., Ltd. (600282) 2018 Annual Report Comment: Profits 武汉桑拿社 Reach History’s Best and Best Continuous High Dividend Expectations

The company’s 2018 net profit reached a record high again, with a ROIC of 21% and an asset-liability ratio of 52%.

In 2018, the company achieved net profit attributable to mother 40.

08 billion, an increase of 25 every year.

24%, another record high.

Free cash flow 43.

09 billion, an annual increase of 120%; ROIC is 20.

9%, a high level in the industry; the asset-liability ratio dropped by 6 year-on-year.

86 perfect to 51.

91%.

  2018Q4 single quarter net profit fell 50% from the previous quarter.

The company’s net profit attributable to its parent in the fourth quarter of 2018 was 5.

7.1 billion yuan, 50% lower than the previous month.

3%; net cash flow from operations in a single quarter 5.

9.1 billion, down 78% from the previous month.

Affected by the overall downturn of the 北京夜网 steel industry, the company’s 2018Q4 single quarter performance was weak.

  The dividend ratio in 2018 is 33% and it is clear that it will not be less than 30% in the next three years, and the current dividend yield is about 7%.

The company’s dividend amount for 2018 is 13.

2.7 billion yuan, accounting for 33% of net profit attributable to mothers in 2018.

10%, and it is clear that the dividend for the next three years is not less than 30% of the net profit of the mother at that year.

Based on the closing price on March 22, 2019, the company’s latest yield is about 6.
.

91%, higher return on investment.

  In 2018, the output of steel exceeded 1,000 tons for the first time, and the gross profit per ton of steel plate exceeded 1,000 yuan.

The company’s crude steel output in 2018 was 1005, an annual increase of 2.

04%, exceeding 100 billion tons for the first time; of which, the output of fine plate is 464, accounting for 51%, and it is one of the domestic plate leaders.

The company’s gross profit per ton of steel plate products in 2018 was 1,066 yuan, a continuous and significant increase of 73%, which was the main force driving the company’s profit growth in 2018.

  Planned short-term growth in steel output in 20195.

5%, operating income increases by 7 per year.

4%.

The company plans to produce 1,060 digits of crude steel output in 2019, with an annual increase of 5.

5%, a lot of valuable in the context of strict control of steel supply, is expected to be achieved by increasing capacity utilization.

The company plans to achieve operating income of 46.9 billion yuan in 2019, an increase of 7 for the whole year.

4%.

The increase in operating income exceeded the output of crude steel, which also indicates that the company’s prediction of the steel price trend in 2019 may be optimistic.

  Expected to continue to have a high return on investment is expected to maintain the “overweight” rating.

We expect the overall prosperity of the steel industry to decline in 2019, lower the company’s profit forecast for 2019-2020, and add a profit forecast for 2021. It is expected that the company’s EPS for 2019-2021 will be 0.

81 yuan, 0.

79 yuan, 0.
76 yuan.
The company PE (2019E) is 5.

4 times, the proportion of dividends is expected to be high in the next few years, and the return on investment will continue to be high.

Maintain the company’s “overweight” rating.

  Risk reminders: the risk of falling steel prices; policy risks; market volatility risks.