Data:2009-12-12 2:34
Category: Money Tips Date: 2006-06-27
Handan Iron & Steel (600001 market, information, reviews, search) acquisition of Iron and Steel Group subsidiary assets, the Department of steel production reached 6.2 million tons, the product structure was further optimized, plate or about 70% of total output, and gradually realized mainly by ordinary building materials to the plate-based changes. District 5 million tons Handan Iron & Steel Sheet project has been started, a main project and 2.5 million tons production capacity is expected to achieve production in mid-2008, Phase II project is expected to 2010. If the Wuyang Iron and Steel Group's stake in the company do not load, then the next two years, the company will not have a substantial increase in production.
Wuyang steel heavy plate and other steel products mainly used in military and export in 2007 planned output of 150 million tons. Wuyang Iron and Steel are also building new production lines, the ultimate production capacity of 250 million tons. Handan Iron & Steel is currently about 65% of the necessary reliance on imported iron ore, most of which is a long list, the rest of the surrounding area from the company's stock purchase. Most of imported iron ore from the sunshine, and other ports of Lianyungang transportation, freight rates per ton to the factory need 100 yuan, higher transportation costs the company a large iron ore costs more than other domestic steel companies. But the company's coal procurement costs are relatively low, as in the vicinity rich in coal resources. The company in December 2006 loss of property write-off more than 100 million yuan, which will position the company in 2006 earnings impact. The company in 2007 a quarter of hot metal production equipment failure, hot metal production decline will affect a quarter of production planning and profitability.
State Yuan Securities analyst Chun-Lei Yao believes that due to steady growth in raw material prices and demand for the impact of steel prices in 2007 the second and third quarter slowly climbed, in October began to fall may be the annual average price will be higher than in 2006 . Expected earnings per share were 06-08 years of 0.31 yuan, 0.50 yuan, 0.53 yuan. At present, domestic steel companies in 2007, the average price-earnings ratio of 12 times, if the 2008 Wuyang Iron and Steel into listed companies, while earnings per share are expected to reach 0.70 RMB, according to 10 times price-earnings ratio to estimate, in 2008 the corresponding price of 7 yuan, so price of 6 yuan for short-term goals, medium-term target price of 7 yuan, "neutral" rating.
