[hot stocks] TISCO stainless steel trading limit after noon! The outstanding performance and cost advantage of China News is highlighted.

This afternoon, TISCO stainless steel rose by the daily limit. Since July 9, the share price of TISCO stainless steel has risen five times in a row, the highest since June 2015. Recently, Taiyuan Iron and Steel Co., Ltd. released the mid-year report for this year. It is estimated that the net profit belonging to shareholders of listed companies in the first half of 2021 is 4.68 billion yuan to 4.97 billion yuan, an increase of 693.18% to 742.33% over the same period last year, and basic earnings per share is 0.822 yuan to 0.873 yuan.

The company pointed out that the change in performance was mainly due to the increase in demand in the downstream industry of iron and steel products and the rise in steel prices due to the macroeconomic recovery in the first half of 2021; at the same time, the company persisted in finding differences in standards, resulting in a substantial increase in production efficiency and significant progress in key process technical and economic indicators. Operating performance increased significantly in the first half of 2021 compared with the same period last year.

It is reported that stainless steel is mainly engaged in the production and sales of stainless steel and other steel, billets, ingots, ferrous metals, ferroalloys and metal products, as well as domestic trade and import and export of raw and auxiliary materials for iron and steel production. The main products are stainless steel, cold-rolled silicon steel, carbon steel hot-rolled coil, train axle steel, alloy die steel, military steel and so on. Electromagnetic pure iron, ultra-pure ferrite, dual-phase steel, high carbon martensite, non-magnetic steel, railway passenger and freight car steel, train axle steel market share first in China.

According to the Zheshang Securities Research report, the company has obvious cost advantages. TISCO has an annual production capacity of 13 million tons of iron concentrate powder and is the enterprise with the highest self-sufficiency rate of iron ore resources in China. The company purchases iron ore from the group and can meet 100% of its own use. And the group gives the company a 15% discount. Iron ore prices have been maintained above US $200 since the second quarter. Under the environment of high ore prices, purchasing iron ore through the group gives the company a greater cost advantage.

Zheshang Securities pointed out that the company has industrial plates, electrical steel and stainless steel products, and high-end product clusters provide stability for the company's profits. Stainless steel is currently in the stage of price increase, and the follow-up is expected to bring performance increment for the company. Superimposing the cost advantage of the company, the company is expected to achieve a net profit of 82.46 cents per 8.478 billion yuan from 2021 to 2023, corresponding to a price-to-earnings ratio of 5.17 to 5.11 pounds, maintaining a "buy" rating.

Prior to this, the Framework Agreement on Cooperation in Construction and Operation of Indonesian Baha Dobi Nickel Iron and Steel ((PCFA)) was signed in Shanghai and Synchronize, Jakarta, Indonesia on June 24th. China Baowu Taigang Group, Vale Indonesia and Xinhai Technology will work together to build and operate the Nickel-Iron project in Morowali County, Central Sulawesi Province, Indonesia. Guojin Securities pointed out that the group has further extended upstream Ni-Fe to ensure the supply of resources for listed companies. In the future, China Baowu Ethernet Steel will be an integrated operation platform for the stainless steel industry, increase the allocation of resources, and achieve further expansion of the upstream iron and nickel industry, listed companies are expected to benefit from Synchronize.