The net profit of Yongjin shares increased by 107.66% in the first quarter. The market share of private enterprises in stainless steel cold rolling industry continued to expand.

Recently, Yongjin shares released the first quarter report of 2021, during the reporting period, the company achieved operating income of 6265519619.76 yuan, an increase of 97.19% over the same period last year; the net profit belonging to shareholders of listed companies was 111186940.29 yuan, an increase of 107.66% over the same period last year. During the reporting period, the operating income was 6265519619.76 yuan, an increase of 97.19% over the same period last year, mainly due to the new business income of Guangdong Yongjin and Qingtuo Shangke in the current period.

It is reported that Yongjin Co., Ltd. is mainly engaged in R & D, production and sales of cold-rolled stainless steel strip, covering precision cold-rolled stainless steel strip and wide cold-rolled stainless steel strip. Its main products are divided into two categories, precision cold-rolled stainless steel strip: it refers to stainless steel strip with special functional requirements after high-quality hot-rolled or cold-rolled stainless steel strip, which is rolled by a high-precision, reversible multi-roll cold rolling mill at room temperature. after bright annealing to achieve the required mechanical properties, and then after many times of rolling to achieve the target thickness, and finally after cleaning, drawing and straightening or leveling treatment, the stainless steel strip with special functional requirements. Wide-width cold-rolled stainless steel strip: refers to the cold-rolled stainless steel strip that is rolled to the target thickness at room temperature, the required mechanical properties are achieved by bright annealing or pickling annealing, and the strip is leveled and the width is more than 1000mm.

According to the annual report of Yongjin shares, the annual production and storage output in 2020 was 1.6663 million tons, an increase of 36.20 percent over the same period last year, and the annual sales were 1.6564 million tons, an increase of 34.98 percent over the same period last year. Among them, the output of wide cold rolling 300 series increased by 37.83% compared with the same period last year, mainly due to the increase of 259600 tons of Guangdong Yongjin output in the reporting period and 49100 tons after the acquisition of Qingtuo Shangke. The output of wide cold rolling 400 series increased by 61.57% compared with the same period last year, mainly due to the increase of 15000 tons after the acquisition of Qingtuo Shangke, and the increase of 23000 tons in Jiangsu Yongjin due to the adjustment of product structure.

According to the Zhongtai Securities Research report, the company's revenue nearly doubled compared with the same period last year. We estimate that the average market price of 304Compact 2B products in eastern China increased by about 12.3% year-on-year and 7.5% month-on-month in the first quarter, and the market price increase was much lower than the company's revenue growth. It can be seen that the revenue growth mainly depends on the contribution of sales improvement. In the first quarter, the company produced a total of 508000 tons of stainless steel cold-rolled products, sales of 484000 tons, compared with sales of 1.66 million tons in 2020, the company's production and marketing capacity has reached a higher level. The annual report and the quarterly report reflect that the company's growth logic continues to materialize. With its leading efficiency advantage, the company has achieved an increase in market share through rapid capacity expansion, and this growth path will continue in the future.

Zhongtai Securities pointed out that the change in the pattern of wide stainless steel cold rolling industry in recent years is reflected in the increase in the share of private enterprises. Due to the flexible mechanism, fine management and obvious advantages in production cost, private enterprises have the power to expand production. The market share of private enterprises represented by Yongjin, Hongwang and Delong continues to expand, among which Yongjin is the leader in the field of 300 series cold rolling. In the long run, the demand for stainless steel is still in the process of growth, and private enterprises will continue to expand their share by occupying the new demand in the future. As a leading enterprise in efficiency in the industry, Yongjin is expected to take the lead in the speed of expansion. In addition, the cooperation with the leading enterprises in the upstream metallurgical industry will also accelerate the growth of Yongjin.