Category: Money tips Release Date: 2006-04-07
Source: Department of Yang Investment Author: Chen Yong
The company is an important production base of vanadium and titanium products, with natural resources and dominance. In November 2005 bearing vanadium and titanium from the G major shareholder of Chengde Iron & Steel Group and Tangshan Iron & Steel Group, a coalition of Steel Group declared a new Tangshan Iron & Steel Group, the establishment of a new Tangshan Iron & Steel Group became Chengdefantai the actual controller. In the new Group's import and export of raw materials, steel prices have been unified management by the Group, are beginning to scale efficiency advantages. The future under the new Tangshan Iron and Steel Group Company located in vanadium and titanium, low-alloy steel industry.
Obvious advantages in resources and strong market competitiveness
The company is the world's fifth and the country's second producer of vanadium products, the company is located in the Chengde area rich in vanadium-titanium magnetite resource is the greatest competitive advantage. According to Chengde City, Hebei Province Land and Resources Bureau statistics, Chengde high-speed rail grade vanadium-titanium magnetite proved reserves 260 million tons, of which 220 million tons to maintain reserves; low iron grade vanadium-titanium magnetite reserves 4.5 billion tons of has conducted a detailed survey to determine the reserves of 2.96 billion tons, its low iron grade vanadium-titanium magnetite with a buried shallow, easily accessible and easy to wear, optional good, mining and low cost for large-scale development and utilization of the creation of a favorable conditions.
Company is the completion of comprehensive utilization of China's industrialization leading enterprises. The company's V-Ti magnetite smelting technology, a world leading level, there were only G bearing vanadium and titanium, and Panzhihua Iron and Steel Group, a small number of corporate control. In addition, the company also has a top and bottom blowing converter vanadium-side technology to self-produced production of vanadium slag as raw materials processing technology as well as vanadium-nitrogen alloy of vanadium pentoxide, vanadium vanadium ferroalloy products. Deep-processing technology, has 19 national patents.
According to the technological characteristics of vanadium and titanium production, steel production growth, the vanadium and titanium products will also grow accordingly, the company can adjust the product structure of different industries to prevent price fluctuations due to individual products, the adverse effects of the company to maintain the company's profitability and market competitiveness. In 2005, when the steel industry recession, Chengdefantai vanadium products with specific profit contribution, not only did not decline in profits, but also experienced growth, fully demonstrates the advantages of differentiation.
Additional listed as a whole is expected to detonate
Recently the company through the issuance of not more than 220 million shares, raising funds not more than 9 billion investment in "Vanadium and Titanium Resources comprehensive utilization of technological transformation projects," fund-raising project is completed, the company can add high-quality vanadium low (micro) alloy steel 476,000 tons / year; vanadium slag 72 thousand tons / year; new vanadium oxide 06,000 tons / year; vanadium product variety from the two (vanadium oxide, 50 V-iron) to four (an increase of 80 vanadium iron and vanadium nitride), the progressive realization of the company to develop a "comprehensive utilization of resources 3 vanadium and titanium development" strategy. With the national economy and the rapid development of steel industry, the market for vanadium and titanium products, the growing demand for space will show the trend. Vanadium as an important micro-alloying elements, will be in the construction steel, pipeline steel, vanadium heavy rail steel, structural steel and non-automotive products such as modulation of the optimization and upgrading of steel to play an important role.
In addition, the company's controller to change the company's development from the industrial policy on the scale of 5 million tons the following business conditions, companies will have more room for independent development. Tangshan Iron and Steel Group's development from a new point of view, the two listed companies, V-Ti bearing Tangganggufen and G would have a different focus of development strategy, which is also conducive to Chengdefantai development. In addition, the company's controlling shareholder is listed as a whole Chengde Iron & Steel Group, an inevitable choice for the future, so in the future operation of the capital to the G bearing vanadium and titanium have also left room for growth.
Lower priced long-term buy
According to our earnings forecast for 2006 and 2007, the company earnings per share were 0.36 and 0.50 million (fully diluted post-issuance), according to today's closing price of 4.12 yuan terms, 2006 and 2007, the dynamics of book value, respectively 1.5 and 1.3 times; dynamic price-earnings ratio of 12 and 8.68-fold, respectively. In view of the company's main business structure and profit model, as well as in vanadium and titanium industry has the advantages of its strategic location, its reasonable price-earnings ratio should be 15-20 times, reasonable pricing should be 5.4-7.2 yuan, the proposed long-term concern.
