As of November 25, the closing price of Shaogang Songshan (000717) for three consecutive trading days has increased by more than 20% from the value of , and the cumulative increase in the past eight trading days has been nearly 36%. As for the reason for the recent strong stock price, the company said that the market price rose rapidly in November, among which the rise of rebar was particularly obvious.
In terms of funds, data from the Dragon and Tiger List for three consecutive days showed that the three institutions had a total net purchase of more than 70 million yuan. On the contrary, the net sales of Shenzhen Stock Connect exceeded 100 million yuan, and there was an obvious divergence in funds.
Shaogang Songshan html rose nearly 36% on the 28th
Recently, the market style has changed significantly. The previous high white horse stocks compensated for the decline. Cyclical sectors such as steel and coal rebounded significantly. The wind Shenwan steel index has increased cumulatively since the recent low. It exceeded 9%, ranking first in the and Shenwan industries. During the same period, the Shanghai Stock Index fell slightly by nearly 0.3%.
On November 25, Shaogang Songshan closed the rally and has risen for eight consecutive trading days, with a cumulative increase of 35.65%, becoming the leader in the recent rebound in the steel sector. In addition to Shaogang Songshan , Anyang Iron and Steel, Liuzhou Iron and Steel Co., , Bayi Iron and Steel, Hongda Mining and other stocks rose by more than 5%, Xining Special Steel , Valin Steel and other stocks rose by more than 5%, and the steel sector exploded across the board. .
Shaogang Songshan belongs to the steel industry. It is mainly engaged in the smelting and processing of ferrous metals, the production and sales of metal products, coke and coal chemical products. Its leading products are three series of plates, wire rods and rods. In the first three quarters of 2019, the company achieved operating income of 21.651 billion yuan, a year-on-year increase of 11.77%; net profit attributable to the parent company was 1.289 billion yuan, a decrease of 53.23% from the same period last year.
Regarding the reasons for the decline in performance, the company stated in its performance forecast that since 2019, the prices of raw materials and fuels, especially imported iron ore, have increased significantly year-on-year, and the overall sales price of steel has declined year-on-year, resulting in a year-on-year decline in the company's performance. In terms of market performance, the company's stock price fell by 18.68% cumulatively in the first three quarters.
According to the announcement, the closing price increase deviation of Shaogang Songshan for three consecutive trading days on November 21, November 22, and November 25, 2019 exceeded 20%. Data for three consecutive days show that there are differences between institutional seats and Shenzhen Stock Connect funds. Among the top five buying seats, there are three institutional seats, with a total purchase of 71.3873 million yuan; among the top five selling seats, Shenzhen Stock Connect net sold 161 million yuan. .
The recent rebound in steel prices
Regarding the recent surge in the company's stock price, Shaogang Songshan announced that the downward pressure on the domestic economy continues to increase, and infrastructure has an obvious underpinning effect. The country has stepped up counter-cyclical policy adjustments, accelerated the implementation of infrastructure projects, and at the same time, environmental protection has become more stringent in phases.
In terms of supply, environmental protection production restrictions in the north have superimposed pressure on Hong Kong. The supply of northern materials to the south is 40% less than in previous years. South China social inventories continue to decrease, and the market building materials resources are tight. On the demand side, infrastructure construction is in a hurry at the end of the year, real estate investment is still resilient, and demand for building materials is strong.
Therefore, there was a mismatch between supply and demand in the early stage and market resources were tight. Market prices rose rapidly in November, with the rise in rebar being particularly obvious. Driven by building materials, other varieties also rose.
The rebound in steel prices is one of the reasons why related stocks started to rebound. Guojin Securities said that judging from the recent market performance of the steel sector, the negative fundamentals and performance have been digested, and some stocks have stopped falling and stabilized. With the subsequent further rebound in steel prices, the steel sector's oversold rebound during the year has entered a period of momentum, and the rebound is expected to gradually unfold.
Guosen Securities stated that the continued rapid decline in inventory reflects the resilience of downstream demand. In addition, the early blockade of northern materials going south led to the shortage of specifications in the south. Steel prices have risen sharply recently. During the month, the national average price of 20mm rebar has increased by 314. Yuan/ton, the price in Guangzhou has risen sharply by 720 Yuan/ton. Continuing demand will become the core factor supporting steel prices. Strong downstream consumption such as real estate and infrastructure will drive demand for steel. However, we must also pay attention to the high output that may be brought about by high profits, the return of northern materials to the south, and the impact of colder weather on demand. Influence.
In terms of valuation, the latest price-to-earnings ratio and price-to-book ratio of Shenwan in the steel industry are both low; in terms of net sales, the steel industry has a net-breaking stock rate of over 30%, and a net-breaking rate is relatively among the top.
