Panzhihua Vanadium Titanium (000629) Company Review: A Vital Step in Vanadium Product Business Integration
Event description: The company issued an announcement a few days ago that it intends to purchase the entire operating assets and liabilities of the vanadium products branch of the Pangang Group Xichang Steel Vanadium Co., Ltd. Pangang Group Co., Ltd., the controlling shareholder of the company, by paying cash.However, the transaction plan still needs further demonstration and communication consensus; the vanadium product business is expected to be fully integrated: When the company undergoes major asset 四川耍耍网 reorganization in 2016, the controlling shareholder and the actual controller separately issued the “Commitment on Avoiding Inter-industry Competition” for practical solutions.Industry competition.
The company’s existing vanadium product capacity is 2.
2 Initially, the capacity of vanadium products of Xichang Steel Vanadium Co., Ltd., a subsidiary of Pangang Group, was 1.
8 At least (currently managed by the company, the custody fee is 80 million / year). If the subsequent asset reorganization is completed, the company’s vanadium product capacity scale will reach 4 indicators, and the group’s internal vanadium resources business will fully integrate the listing platform, which will help enhance the company’s continued profitability.Capacity; third-quarter profit continued to decline from the point of view: from the demand side, the steel industry’s profit in the third quarter hit a new low for the year and further weakened the role of vanadium in maintaining the vanadium; supply-side environmental protection and production restrictions were relaxed;Increase, some enterprises overlap to increase output, and supply has expanded.
In terms of price, the average price of vanadium pentoxide, 50 # iron vanadium, and vanadium-nitrogen alloy in the third quarter were 13 respectively.
20,000 yuan, 13.
60,000 yuan and 20.
70,000 yuan, down 6 a year.
3% and 3.
The company’s latest 2019 first three quarter results forecast, the first three quarters of 2019 are expected to achieve net profit attributable to shareholders of listed companies.
4 trillion, a year-on-year decrease of 30-32%, of which the net profit attributable to the mother in the third quarter was 1.
4 ppm, a decrease of 46-57% from the previous month; vanadium prices will remain low and oscillating: In the previous report, we proposed that the industry supply and demand be reduced, and vanadium product prices will continue to maintain a low oscillating state after falling significantly to normal levels.
In 2019, the overall demand of the steel industry has maintained the same land growth rate, but some production capacity brought about by the relaxation of environmental protection and production capacity replacement has brought pressure on the supply side, and the profits of steel companies have returned to reasonable profits but are still relatively considerable.
Recently, with the release of demand during the peak season of downstream construction, supplementary supply has gradually increased its limit, and the profitability of the smelting end has improved and stabilized, providing effective support for the price of vanadium products. It is expected that the subsequent vanadium price will remain low and volatile; Investment suggestion: The company fully integrates the vanadium resourcesThe business has taken a substantial step. While expanding the product business scale, it will effectively solve the problem of industry competition and enhance the company’s profitability.
The recent profitability of the smelting industry has stabilized, and vanadium prices may remain low and volatile.
The company’s EPS for 2019-2021 is expected to be 0.
19 yuan, 0.
20 yuan and 0.
22 yuan, corresponding to 15 for PE.
6X and 13.
4 times, maintain “overweight” rating; risk warning: uncertainty in asset restructuring issues, macroeconomic downside risks, supply increase in the steel industry exceeds expectations, and supply risk in the vanadium industry increases.