Panzhihua Iron and Vanadium Titanium (000629): Vanadium price hits record high in 2018
Incident Description The company released its 2018 annual report, reporting that the two companies achieved operating income of 151.
610,000 yuan, an increase of 60 in ten years.
68%; net profit attributable to shareholders of the parent company was 30.
900,000 yuan, an increase of 257 in ten years.
96%; EPS achieved in 2018 was 0.
36 yuan, 2017 EPS is 0.
The company achieved operating income of 44 in the fourth quarter.
95 ‰, an increase of 51 in ten years.
95%, realizing net profit attributable to shareholders of the parent company10.
430,000 yuan, an increase of 440 in ten years.
12%, an increase of 16 from the previous month.
20%; EPS in the fourth quarter was 0.
12 yuan, EPS in the third quarter is 0.
Event comment Supply and demand helped the vanadium price rise, and the profit in 2018 hit a record high: As the leader in the domestic vanadium field, the company took the lead to benefit from the improvement in industry supply and demand, and its performance continued to rise, 30.
The 9 billion return to mother’s net profit level is also a record high.
1) As the main downstream of vanadium products, the high value-added of building materials constitutes the high-level layout of structure demand. In 2018, the output of Mysteel rebars increased by 3.
67%. At the same time, the rebar was upgraded in the fourth quarter of last year and the demand for thick vanadium products was increased again. 2) The supply side performance of vanadium 佛山桑拿网 was relatively modest.Under the limited background, vanadium supplementation has shown a surge in performance. Finally, taking the diameter of the ferroalloy network as an example, the output of vanadium pentoxide (intermediate products in the vanadium industry chain) has only increased by about 14%; 3) The growth rate has become vanadium in 3-4 quarters.Supply and demand mismatch spiral, the vanadium iron (one of the end products of the vanadium industry chain) inventory gradually turned to 67% to historical lows, which can be confirmed, with the high price performance all the way, entering the Sichuan region, the average price of vanadium pentoxide is high every yearWith an increase of about 131%, the company’s performance climbed to an all-time high and it came naturally.
In addition, it is worth noting that the company’s environmental protection relocation construction in 2018 made provision for impairment of the chlorinated titanium dioxide (Phase 1) project, which correspondingly reduced the company’s substantial net profit by about 2.
10,000 yuan, if this factor is excluded, the company’s actual profit will be more abundant.
The supply-demand mismatch pattern declined, and the high price of vanadium in Q4 decreased: the price of vanadium pentoxide decreased by 48 in the fourth quarter.
15%, mainly due to: 1) steel mills expand production and reduce heating season production restrictions, resulting in hindered thread volume upwards, expanding demand for vanadium; 2) high vanadium prices, increasing steel prices, increasing profits, reducing some steel mills to optimize productionThe process adopts ≤ instead of vanadium to further reduce the demand for vanadium; 3) The production capacity of the vanadium industry chain is increased, the increase in production capacity and the resumption of vanadium from stone coal are gradually increased, and the central center is gradually improved, and the mismatch size is reduced.
However, based on the high vanadium price hub, the company’s fourth-quarter profit continued to grow.
The transformation and upgrading are advancing, and the vanadium price is expected to run in a reasonable range for a long time: the rebar water penetration and transformation have continued to land, the basic demand for vanadium has been completed, and the vanadium price may no longer fall to historical lows.
Similarly, stable production at the supply side will also cooperate with demand to introduce a long-term center of vanadium price operation in a reasonable range.
The company’s EPS is expected to be zero in 2019 and 2020.
30 yuan, 0.
29 yuan, given a “buy” rating.
Risk Warning: 1.
In iron and steel added alloys, ≤ iron is a major substitute for vanadium; 2.
Vanadium supply is released quickly and quickly.