[SMM analysis] when the merger and reorganization of steel enterprises is going on! The "era of big steel enterprises" has come-Shanghai Metals Market

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[SMM analysis] when the merger and reorganization of steel enterprises is going on! The "era of big steel enterprises" has come

Translation 04:25:00PM Jun 03, 2019 Source:SMM

June 3, Maanshan Iron and Steel Co., Ltd. (Maanshan Iron and Steel Co., Ltd.) issued an announcement saying that Anhui State-owned assets Supervision and Administration Commission, the actual controller of the company, will transfer its 51% stake in Maanshan Iron and Steel Group to China Baowu Iron and Steel Group Co., Ltd. (China Baowu). After the completion of the transfer, China Baowu will indirectly control 45.54% of the shares of the company through Maanshan Iron and Steel Group, and realize the control of the company, and the actual controller of the company will be changed from the State-owned assets Supervision and Administration Commission of Anhui Province to the State-owned assets Supervision and Administration Commission of the State Council.

The chart of changes in the shares before and after the completion of the transfer:

 

The reorganization of China's Baowu and Maanshan Iron and Steel Group, on the one hand, will drive Maanshan Steel to achieve leapfrog development, strengthen the state-owned economy in Anhui Province, promote the aggregation and development of iron and steel and related industries, promote the transformation and upgrading of the industrial structure in Anhui Province, and achieve higher quality development. On the other hand, it will promote the lofty vision of China Baowu to become "the leader of the global steel industry" and further create a world-class platform for technological innovation, industrial investment and capital operation in the iron and steel sector.

In recent years, as a part of the supply-side reform of the iron and steel industry, the state has also been promoting the merger and reorganization of iron and steel enterprises. According to Chi Jingdong, vice president of the China Iron and Steel Association, in 2016, the State Council issued the "guidance on promoting the merger, reorganization and disposal of zombie enterprises in the iron and steel industry," according to Chi Jingdong, vice president of the China Iron and Steel Association. 60 per cent to 70 per cent of production in China's steel industry will be concentrated in about 10 large groups, including three to four 80 million-tonne steel groups and six to eight 4000-tonne steel groups. By 2018, the top ten steel groups in China accounted for only 35.26% of the country's crude steel production, far below the level and overall target set by the United States, Japan, South Korea and other developed countries.

According to data reported by Xinhua News Agency, the operating scale and quality of China's iron and steel enterprises are far behind those of the world's first-class iron and steel enterprises. From the point of view of business income, the income of overseas steel enterprises is basically 2 to 40 times that of China's steel enterprises. From the point of view of per ton steel income, China's steel enterprises are far lower than the world's first-class level. In terms of net profit, with the exception of Baowu Group, China's steel enterprises are lower than the world's first-class level. From the perspective of net interest rate, China's steel enterprises suddenly high and low, the average profit margin is lower than the world first-class level. In 2017, the net profit margin of Chinese steel enterprises is generally higher than that of overseas steel enterprises, but the average profit margin of Japanese and Korean steel enterprises is 2 to 5 times that of Chinese steel enterprises (except Baowu Group). Li Xinchuang, vice president of the China Iron and Steel Industry Association and president of the Metallurgical Industry Planning and Research Institute, said, "for the domestic iron and steel industry, in 2019, in addition to controlling production, keeping pace with the change in demand structure, and providing better services to customers, We should also follow the principle of marketization and speed up the merger and reorganization of enterprises. "

China Baowu Iron and Steel Group Co., Ltd. is an important central state-owned enterprise supervised by the State-owned assets Supervision and Administration Commission of the State Council. It is understood that China's Baowu Iron and Steel has a production capacity of 70 million tons, ranking first in China and second in the world. It is the highest degree of modernization and the most competitive iron and steel joint venture in China. According to the 2018 annual report of the company, the total profit of Baosteel shares reached 27.82 billion yuan, maintaining the leading position of domestic carbon steel plate and the best performance of the domestic industry. The sales scale of the company's silicon steel products has ranked first in the world, the sales scale of automobile plates has also entered the top three in the world, and the cold-rolled automobile plates continue to maintain a domestic market share of more than 50%. Zhanjiang Iron and Steel, Meigang, WISCO and other major iron and steel subsidiaries have increased significantly.

Analysis of production and sales:

The stock strength of Maanshan Iron and Steel Co., Ltd. was also good, with operating income of 81.952 billion yuan in 2018, an increase of 11.91 percent over the same period last year, and a net profit of 5.943 billion yuan, an increase of 43.94 percent over the same period last year. In 2018, the company completed the task of removing production capacity, shut down two blast furnaces and two converters, and withdrew its ironmaking capacity of 1 million tons and steelmaking capacity of 1.28 million tons. So far, the company has fully completed the three-year task target of removing production capacity, with a cumulative withdrawal of 2.24 million tons of ironmaking capacity and 2.56 million tons of steelmaking capacity. With the withdrawal of production capacity and the overhaul of a blast furnace, the Group produced 18 million tons of pig iron, 19.64 million tons of crude steel and 18.7 million tons of steel for the whole year, basically unchanged from the previous year.

From 2011 to 2018, the Group produced pig iron, crude steel and steel:

 

It is reported that the two enterprises formed a strategic alliance as early as more than 10 years ago, and the two sides exchanged frequently, and the association with Maanshan Iron and Steel Group brought China's Baowu one step closer to its goal of building a 100 million ton iron and steel group.

In recent years, there are more and more cases of merger and reorganization of iron and steel enterprises in China. According to the statistics of China Metallurgical News, the former Baosteel Group and the former WISCO Group have been reorganized into China Baowu Group and become the largest iron and steel enterprise group in China. Jiangsu Shagang Group has reorganized the former Northeast Special Steel Group; Jianlong Group has rapidly expanded to more than 30 million tons of production capacity in Shanxi and Northeast China through a series of mergers and restructurings; Fujian Province has also arranged two iron and steel groups of more than 10 million tons. Fangda Group merges and reorganizes 27 enterprises, with total assets of more than 70 billion yuan, and this situation continues throughout the country.

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[SMM analysis] when the merger and reorganization of steel enterprises is going on! The "era of big steel enterprises" has come

Translation 04:25:00PM Jun 03, 2019 Source:SMM

June 3, Maanshan Iron and Steel Co., Ltd. (Maanshan Iron and Steel Co., Ltd.) issued an announcement saying that Anhui State-owned assets Supervision and Administration Commission, the actual controller of the company, will transfer its 51% stake in Maanshan Iron and Steel Group to China Baowu Iron and Steel Group Co., Ltd. (China Baowu). After the completion of the transfer, China Baowu will indirectly control 45.54% of the shares of the company through Maanshan Iron and Steel Group, and realize the control of the company, and the actual controller of the company will be changed from the State-owned assets Supervision and Administration Commission of Anhui Province to the State-owned assets Supervision and Administration Commission of the State Council.

The chart of changes in the shares before and after the completion of the transfer:

 

The reorganization of China's Baowu and Maanshan Iron and Steel Group, on the one hand, will drive Maanshan Steel to achieve leapfrog development, strengthen the state-owned economy in Anhui Province, promote the aggregation and development of iron and steel and related industries, promote the transformation and upgrading of the industrial structure in Anhui Province, and achieve higher quality development. On the other hand, it will promote the lofty vision of China Baowu to become "the leader of the global steel industry" and further create a world-class platform for technological innovation, industrial investment and capital operation in the iron and steel sector.

In recent years, as a part of the supply-side reform of the iron and steel industry, the state has also been promoting the merger and reorganization of iron and steel enterprises. According to Chi Jingdong, vice president of the China Iron and Steel Association, in 2016, the State Council issued the "guidance on promoting the merger, reorganization and disposal of zombie enterprises in the iron and steel industry," according to Chi Jingdong, vice president of the China Iron and Steel Association. 60 per cent to 70 per cent of production in China's steel industry will be concentrated in about 10 large groups, including three to four 80 million-tonne steel groups and six to eight 4000-tonne steel groups. By 2018, the top ten steel groups in China accounted for only 35.26% of the country's crude steel production, far below the level and overall target set by the United States, Japan, South Korea and other developed countries.

According to data reported by Xinhua News Agency, the operating scale and quality of China's iron and steel enterprises are far behind those of the world's first-class iron and steel enterprises. From the point of view of business income, the income of overseas steel enterprises is basically 2 to 40 times that of China's steel enterprises. From the point of view of per ton steel income, China's steel enterprises are far lower than the world's first-class level. In terms of net profit, with the exception of Baowu Group, China's steel enterprises are lower than the world's first-class level. From the perspective of net interest rate, China's steel enterprises suddenly high and low, the average profit margin is lower than the world first-class level. In 2017, the net profit margin of Chinese steel enterprises is generally higher than that of overseas steel enterprises, but the average profit margin of Japanese and Korean steel enterprises is 2 to 5 times that of Chinese steel enterprises (except Baowu Group). Li Xinchuang, vice president of the China Iron and Steel Industry Association and president of the Metallurgical Industry Planning and Research Institute, said, "for the domestic iron and steel industry, in 2019, in addition to controlling production, keeping pace with the change in demand structure, and providing better services to customers, We should also follow the principle of marketization and speed up the merger and reorganization of enterprises. "

China Baowu Iron and Steel Group Co., Ltd. is an important central state-owned enterprise supervised by the State-owned assets Supervision and Administration Commission of the State Council. It is understood that China's Baowu Iron and Steel has a production capacity of 70 million tons, ranking first in China and second in the world. It is the highest degree of modernization and the most competitive iron and steel joint venture in China. According to the 2018 annual report of the company, the total profit of Baosteel shares reached 27.82 billion yuan, maintaining the leading position of domestic carbon steel plate and the best performance of the domestic industry. The sales scale of the company's silicon steel products has ranked first in the world, the sales scale of automobile plates has also entered the top three in the world, and the cold-rolled automobile plates continue to maintain a domestic market share of more than 50%. Zhanjiang Iron and Steel, Meigang, WISCO and other major iron and steel subsidiaries have increased significantly.

Analysis of production and sales:

The stock strength of Maanshan Iron and Steel Co., Ltd. was also good, with operating income of 81.952 billion yuan in 2018, an increase of 11.91 percent over the same period last year, and a net profit of 5.943 billion yuan, an increase of 43.94 percent over the same period last year. In 2018, the company completed the task of removing production capacity, shut down two blast furnaces and two converters, and withdrew its ironmaking capacity of 1 million tons and steelmaking capacity of 1.28 million tons. So far, the company has fully completed the three-year task target of removing production capacity, with a cumulative withdrawal of 2.24 million tons of ironmaking capacity and 2.56 million tons of steelmaking capacity. With the withdrawal of production capacity and the overhaul of a blast furnace, the Group produced 18 million tons of pig iron, 19.64 million tons of crude steel and 18.7 million tons of steel for the whole year, basically unchanged from the previous year.

From 2011 to 2018, the Group produced pig iron, crude steel and steel:

 

It is reported that the two enterprises formed a strategic alliance as early as more than 10 years ago, and the two sides exchanged frequently, and the association with Maanshan Iron and Steel Group brought China's Baowu one step closer to its goal of building a 100 million ton iron and steel group.

In recent years, there are more and more cases of merger and reorganization of iron and steel enterprises in China. According to the statistics of China Metallurgical News, the former Baosteel Group and the former WISCO Group have been reorganized into China Baowu Group and become the largest iron and steel enterprise group in China. Jiangsu Shagang Group has reorganized the former Northeast Special Steel Group; Jianlong Group has rapidly expanded to more than 30 million tons of production capacity in Shanxi and Northeast China through a series of mergers and restructurings; Fujian Province has also arranged two iron and steel groups of more than 10 million tons. Fangda Group merges and reorganizes 27 enterprises, with total assets of more than 70 billion yuan, and this situation continues throughout the country.

"[investment must see] Trade friction news flying all over the metal how to win in chaos?

"Click to enter the registration page

Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business