Valin Iron and Steel: net interest rate skyrocketed Iron, Steel and Timber production reached a semi-annual record

SMM: Hunan Valin Iron and Steel Co., Ltd. recently released mid-year results, compared with the first quarter data, the company's debt ratio fell from 86.5% to 78.39%, net profit margin soared from 1.71% to 7.68%. The profitability of the company has improved significantly. However, it should be pointed out that although profitability has improved significantly, the debt ratio of 78.39 percent is still at a high level. in May, it was reported that Valin Iron and Steel was trying to reduce the asset-liability ratio and improve its ability to resist risks. Valin will increase the proportion of direct financing in an effort to achieve real equity financing and expects the asset-liability ratio to fall to about 60 per cent by the end of the year.

1. production and sales of iron, steel and timber

In June 2018, the company's iron, steel, material production and steel sales figures are shown in the following table:

Hunan Valin Iron and Steel Co., Ltd. focuses on the high-end market and the emerging steel industry. Its products are widely used in a large number of super projects and key projects at home and abroad, such as Arctic Yamal Project, Shenhua Ning Coal Oil production Project, Hong Kong-Zhuhai-Macao Bridge, Capital New Airport, combustible Ice Mining "Blue Whale 1" and so on.

II. the reason for the change of performance-the increase of the Trade rate of medium and heavy Plate under the tight balance of supply and demand

In the first half of 2018, the supply and demand of the iron and steel industry continued to be in a tight balance, maintaining a good level of profitability. the company continued to promote the integration of lean production, marketing, research and production, and the construction of a marketing service system, and the production efficiency was greatly improved. In the first half of the year, the output of iron, steel and wood increased by more than 10%, 18% and 16% compared with the same period last year, reaching an all-time high.

The gross profit margin of medium and heavy plate, seamless steel pipe and other products has increased significantly compared with the same period last year; In the first half of the year, it is expected to realize a net profit of 4.18 billion yuan to 4.38 billion yuan, an increase of 252 percent over the same period last year, an increase of 25.9 percent over the same period last year, and a net profit of 3.38 billion yuan to 3.58 billion yuan, an increase of 253 percent to 274 percent over the same period last year. Of this total, the second quarter was 20 per cent higher than the first quarter and more than 33 per cent higher than in the first quarter.

Source: SMM Steel

III. other business developments

In early June, 20, 000 tons of steel plate produced by Valin Xianggang for Shanghai Waigaoqiao Ocean Engineering FPSO ship (floating production Storage and unloading tanker) was basically shipped. This part of the ship plate specifications, high requirements, using TMCP (thermo-mechanical control process) rolling, all carried out flaw detection; In addition, Valin Xianggang produced more than 290000 tons of bridge steel in the first half of this year, an increase of 25 percent over the same period last year, and ranked first in output in the same industry.

In February and June, Valin Lianyuan Steel successfully produced 1.25 m wide high-end alloy tool steel developed by Valin Lianyuan Iron and Steel Co., Ltd. The alloy tool steel for high-end saw blades is not only the first successful trial production in China, but also the first production process of some grades in China, and has been authorized by the state patent.

3. recently, Valin Hengshan Iron and Steel Co., Ltd. won the bidding for the steel pipe of the world's largest thermal power unit by advantage, winning more than 1100 tons of extra-large diameter seamless tubes, accounting for 51 percent of the total amount of bidding, demonstrating the dominant position of Valin Henggang in the field of high steel grade and large diameter boiler tubes.

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