Today, we will take down the western iron and steel leader Baotou Iron and Steel Co., Ltd. together.
1. Company profile
Founded in 1954, Baotou Iron and Steel (Group) Company, the predecessor of Baotou Iron and Steel Co., Ltd., is one of the 156 key projects built by the state during the "First Five-Year Plan" period, the first large-scale iron and steel enterprise built by New China in ethnic minority areas, and the only iron and steel enterprise for which Premier Zhou Enlai cut the ribbon. At present, it has become the world's largest rare earth industrial base and an important steel industry base in the mainland. As an important steel sector of Baotou Steel (Group) Company, Baotou Steel Co., Ltd. was established in 1999 and listed on the Shanghai Stock Exchange in 2001, and in the past 20 years, the total assets of Baotou Iron and Steel Co., Ltd. have increased by more than 20 times, the scale of equity financing has reached 45.935 billion yuan, and the total market value has increased from 7.1 billion yuan to more than 170 billion yuan, during which the highest exceeded 180 billion yuan, becoming the largest listed steel company in the western part of the mainland.
2. Performance (2023 annual report)
· The performance is stable, in terms of products, "plates" support sales, "profiles" support profits, and it is worth noting that "plates" have suffered losses.
· The consolidated gross profit margin increased by 2 percentage points to 9.7%, and the profitability of operating activities improved due to the improvement of product competitiveness.
· The ability of shareholders' equity to leverage assets was stable, the return on total assets turned around, and the ROE also successfully turned around.
· In the long term, the hematopoietic capacity of operating activities is sufficient to cover the needs of investment, and the cash flow is relatively healthy.
· The company's financing means are diversified, mainly relying on debt and other means of financing, the financial asset-liability ratio is 27%, and the debt repayment pressure has increased.
· The asset scale is stable at 151.8 billion yuan, and the structure focuses on business, which has strong strategic development significance, and "blood transfusion" drives capital growth.
3. Capital market performance
· The fundamentals are good, with a market value of 70.8 billion, ranking 2nd in the plate industry, and a price-earnings ratio of 246 times, ranking 1st in the industry.
· In the past year, the company's closing price has fallen by 19%, which is significantly greater than the industry average decline of 1%.
· The institutional shareholding ratio is 46.5%, which is lower than the industry average, but the shareholding ratio of northbound funds is 2.6%, which is much higher than the industry average.
· In the past six months, the company has received a total of 4 research reports, which is lower than the industry average, and the attention of brokerages is not high.
The following is a detailed data analysis for your reference.
1. Fundamental changes
Baotou Steel's 2023 annual report ranked 2663 in A-shares, down 14 places from the previous quarter's ranking and 629 places higher than the same period last year. Baotou Steel's 2023 annual report ranked 28th in the industry, unchanged from the previous quarter's ranking, and 6 places higher than the same period last year.
Note: This ranking is based on a comprehensive analysis of 15 indicators such as operating income, core profit growth, ROE, dividends, and cash flow. The 15 indicators involve fundamental and capital analysis of the company's scale, growth, profitability, operating contribution, cash flow health, dividends, goodwill risk, and northbound capital. Reflects the trend of the fundamentals of listed companies in each financial reporting period.
Second, value performance
The market value of Baotou Steel Co., Ltd. on May 24, 2024 was 70.832 billion yuan, ranking second among 17 companies, and it is a large enterprise with a market capitalization. The P/E ratio is 245.86, ranking first among 17 companies, and it is a company with a large P/E ratio.
From January 3, 2023 to May 24, 2024, the company's closing price rose and fell by -19.17%, and the CSI 300 index rose and fell by -7.37%, the company's rise and fall was significantly lower than that of CSI 300, and the rise and fall of plates was -1.44%, and the company's rise and fall was significantly lower than the industry level.
3. Capital market signals
As of May 24, 2024, there has been no capital signal in Baotou Steel.
On December 31, 2023, the institutional shareholding ratio of Baotou Steel Co., Ltd. was 46.50%, which was lower than the industry average. As of May 24, 2024, 17 companies in the industry have northbound capital holdings, and the northbound capital shareholding ratio of Baotou Iron and Steel Co., Ltd. is 2.57%, which is much higher than the average of companies in the industry that have received northbound capital investment.
As of May 24, 2024, 12 companies in the industry have obtained brokerage research reports in 180 days, and Baotou Steel has obtained 4 brokerage research reports, which is lower than the average of companies in the industry that have obtained brokerage research reports, and the least among the benchmarking companies. It has been rated by 3 brokerages, with a comprehensive rating of buy-.
On May 24, 2024, 11 companies in the industry obtained the performance forecast of brokers, and the compound growth rate of net profit attributable to the parent company in the next three years was predicted to be 57.90%. 11 companies obtained the stock price forecast of the brokerage, and the target price of Baotou Steel Co., Ltd. was 2.10 yuan / share, and the target price rose and fell by 34.62%.
Fourth, core financial characteristics
In 2023, the net profit of Baosteel Co., Ltd. was 13.741 billion yuan, which was basically stable compared with the 2022 annual report.
From the perspective of product classification, the main composition of Baotou Steel Co., Ltd., "plate" is the largest revenue component, accounting for 50.14%, contributing most of the revenue.
In the profit composition of Baotou Iron and Steel Co., Ltd., "profile" is the largest profit component, accounting for 89.68%, contributing most of the gross profit. Among them, "plates, wires and bars" showed losses.
In the 2023 annual report, the core profit of Baotou Steel Co., Ltd. will turn around, with the average core profit growth rate of the industry being -62.12%, and the core profit growth rate of Baosteel Co., Ltd. being -6.36%.
The gross profit margin of Baotou Steel Co., Ltd. in 2023 is 9.72%, compared with the 2022 annual report, the gross profit margin increased by 1.98 percentage points, and the gross profit margin improved. The gross profit margin of Baotou Steel Co., Ltd. is significantly higher than that of Baosteel Co., Ltd. by 3.51 percentage points.
In the 2023 annual report, the ROE of Baotou Steel Co., Ltd. was 0.99%, an increase of 2.34 percentage points compared with the 2022 annual report, and the shareholder return turned around. The return on total assets was 0.02%, an increase of 1.00 percentage points from the 2022 annual report, and the return on total assets turned around. The equity multiplier was 2.47 times, an increase of 0.08 times compared with the 2022 annual report, and the ability of shareholders' equity to leverage assets was basically stable.
In 2023, the return on operating assets of Baotou Steel Co., Ltd. will be 0.76%. Compared with the 2022 annual report, the return on operating assets has achieved a turnaround. Core margin was 1.48%. Compared with the 2022 annual report, the core profit margin increased by 1.50 percentage points, and the operating activities achieved a turnaround. The operating asset turnover ratio was 0.51 times, a decrease of 0.02 times or 4.19% compared with the 2022 annual report, and the operating asset turnover efficiency was basically stable.
From the perspective of the cash flow structure of Baotou Steel Co., Ltd. from the 2021 annual report to the current period, the opening cash was 3.245 billion yuan, the net inflow of operating activities was 12.053 billion yuan, the net outflow of investment activities was 4.823 billion yuan, the net outflow of financing activities was 6.099 billion yuan, the net inflow of other cash was 19 million yuan, the cumulative net inflow of 1.151 billion yuan in three years, and the cash at the end of the period was 4.395 billion yuan.
From the perspective of the cash flow structure of Baotou Steel's 2023 annual report, the opening cash was 5.263 billion yuan, the net outflow of operating activities was 989 million yuan, the net outflow of investment activities was 2.212 billion yuan, the net inflow of financing activities was 2.324 billion yuan, the cumulative net outflow was 868 million yuan, and the ending cash was 4.395 billion yuan.
The outflow of strategic investment funds in the 2023 annual report of Baotou Steel Co., Ltd. was 1.756 billion yuan, an increase of 779 million yuan compared with the 2022 annual report, with a growth rate of 79.71%, and the capital investment of strategic investment grew rapidly.
In 2021, Baotou Steel Co., Ltd. reported an outflow of 3.683 billion yuan of strategic investment funds and a net cash inflow of 12.053 billion yuan from operating activities, and the hematopoietic capacity of operating activities can cover the outflow of funds from strategic investment.
Baotou Steel's 2023 annual report has a net cash outflow of 989 million yuan from operating activities, a decrease of 3.055 billion yuan from the 2023 annual report, and a cumulative net inflow of 12.053 billion yuan from operating activities in the current period reported in 2021.
Baotou Iron and Steel Co., Ltd. reported in 2023 that the adjusted profit from operating activities was 6.495 billion yuan, with a cash outflow of 1.276 billion yuan due to early stocking, a cash outflow of 7.501 billion yuan due to changes in receivables and payables, and a cash inflow of 1.293 billion yuan due to other factors, and a net cash outflow of 989 million yuan from operating activities.
The outflow of investment activities in the 2023 annual report of Baotou Steel Co., Ltd. accounted for the largest proportion of capacity construction, accounting for 78.72%. In 2021, Baotou Steel Co., Ltd. reported the outflow of investment activities in the current period, and capacity construction accounted for the largest proportion, accounting for 71.43%.
In the 2023 annual report, the funding gap between the operating activities and investment activities of Baotou Steel Co., Ltd. is 3.200 billion yuan, which is compared with the 2022 annual report. In 2021, the cumulative net inflow of operating activities and investment activities in the current period was 7.230 billion yuan, and there was no funding gap.
The cash inflow of financing activities in the 2023 annual report of Baotou Steel Co., Ltd. was 38.289 billion yuan, a decrease of 3.539 billion yuan compared with the 2022 annual report, with a growth rate of -8.46%, and the cash inflow of financing activities decreased. The financing inflow of Baotou Steel's 2023 annual report mainly comes from debt inflow (57.70%) and other inflows (42.24%).
Baotou Iron and Steel Co., Ltd. reported a net debt inflow of 3.190 billion yuan in 2023, an increase of 61 million yuan compared with the 2022 annual report, and the company continued to have new loans, and the scale of new loans was basically stable.
On December 31, 2023, the financial debt ratio of Baotou Steel Co., Ltd. was 27.00%, an increase of 1.90 percentage points from December 31, 2022. The financial debt ratio of Baosteel is 13.95%, and the financial debt level of Baotou Iron and Steel is higher than that of Baosteel.
On December 31, 2023, the total assets of Baotou Iron and Steel Co., Ltd. were 151.776 billion yuan, compared with September 30, 2023, the assets of Baotou Iron and Steel Co., Ltd. decreased by 1.776 billion yuan, the asset scale was basically stable, and the asset growth rate was -1.16%. From the perspective of the asset structure of the consolidated statements, the asset allocation focuses on the business and has strong strategic development significance.
Judging from the structure of liabilities and owners' equity of Baotou Steel Co., Ltd. as of December 31, 2023, the company's capital introduction strategy is driven by the balanced use of shareholders' capital, operating liabilities and financial liabilities.
Software "Market Cap Advisor" Application for Trial: 17310319665