Yongxing Material (002756): Special Steel’s profit slightly reduces lithium carbonate project into trial production

Yongxing Material (002合肥夜网 756): Special Steel’s profit slightly reduces lithium carbonate project into trial production

Event: The company announced the third quarter report for 2019, and achieved net profit attributable to mothers in the first three quarters3.

6.1 billion.

The company achieved operating income of 36 in the first three quarters.

97 ppm, an increase of 1 per year.

69%, net profit attributable to mothers3.

61 ppm, an increase of 9 per year.


Among them, the company achieved operating income of 12 in the third quarter.

16 ppm, an increase of 0 per year.

61%, down 6 from the previous month.

28%, net profit attributable to mother 0.

96 trillion, down 9 a year.

37%, down 40% from the previous month.


Opinion: The company’s output has steadily increased.

The gross profit per ton is about 1974 yuan.

According to data disclosed by Mysteel, as of August 2019, the company gradually produced special steel 19.

73 inches, of which 12 are special steel bars.

65 cobalt, special steel wire 7.


Based on the data from June to August, we believe that the company produced about 7 special steels in the third quarter.

41, corresponding to a gross profit of about 1974 yuan per ton, down 11 from the previous month.

56%, net profit per ton is about 1302 yuan, down 39 from the previous month.


Nickel prices pushed up costs and the company’s gross profit margin decreased.

In the third quarter of this year, the average price of nickel increased by 23%, and the price of waste stainless steel increased by 8%, driving up the company’s costs.

Termination of the company’s gross profit margin in the third quarter12.

03%, net interest rate 7.

94%, compared with the early period.

The company’s annual production of an initial battery-level lithium carbonate project has entered the trial production stage.

The company’s annual lithium battery project with an annual output of 1 has completed the construction of the main body of the project and the installation and commissioning of the equipment.

The company has a total of two production lines for this project. Each production line has a design capacity of 5,000 tons. At present, line 1 has entered the continuous production stage, and the output has reached 70% -80% of the designed capacity. Line 2 is expected to be trial-produced in mid-October.

The company successfully researched and developed GH2132 high temperature alloy material and realized batch supply to downstream enterprises.

GH2132 is an iron-nickel-based high-temperature alloy. It has high yield strength and long-lasting strength at about 650 degrees, and has good process plasticity and weldability. It is widely used as a high-temperature bearing component of an aviation engine or a fastener of an automobile engine.

The company’s bulk supply of this product will realize import substitution, and will enrich and optimize the company’s high-end 四川耍耍网product structure, and also lay the foundation for the company’s next development of other nickel-based high-temperature alloys.

Profit forecast and investment rating.

The company’s main business of stainless steel long products has been steadily upgraded. The battery-level lithium carbonate project will be put into production during the year, which will foster new profit growth points. We expect the company’s net profit attributable to mothers to be 4 in 2019-2020.
60, 5.
71 ppm, EPS is 1.

28, 1.

59 yuan.

Refer to comparable companies and give them 15-18 times PE in 2019, with a reasonable value range of 19.


04 yuan, maintaining the investment rating of “Long-term Market”.

risk warning.

The benefits of the battery-level lithium carbonate project were not up to expectations.