If the property is the market's spine, it is the legs of steel and nonferrous metals. From 3500 points to 2700 points, Fei Liu Mashimo, real estate is like one place chicken feathers, unfortunately, this has been widely anticipated short steel plate reduced the power firm.
The Wuhan Iron and Steel shares (600,005, stock bar) (600005.SH) is this an air force camp banner. The lowest from 12.5 yuan to 727 yuan a night to return before liberation. The reported results from speaking, 4 trillion stimulus package is just passing on the Wuhan Iron and Steel, the shape of the loss of 10 months.
10 months later, Wuhan Iron and Steel has finally dished out the flavor with the chicken ribs 12 billion re-financing package.
Colors of the Wuhan Iron and Steel
4 months ago, warrants financing failed and did not give up the idea of financing Wuhan Iron and Steel. August 27, Wuhan Iron and Steel issued a public notice that for every 10 shares to be in accordance with not more than 3 percentage of shares to all shareholders to subscribe for fund-raising 12.0 billion for the acquisition of Wuhan Iron and Steel Group's steel-related assets as well as additional liquidity squeeze. That day the report is published.
It is this a mid-year report of the market's confidence in the defense defeated.
In the first half, Wuhan Iron and Steel to achieve operating income of 23.53 billion yuan, down 36.9% year on year; to achieve net profit of 506 million yuan, down 89.7% year on year. 29, Baosteel Center Daily News published net profit of 669 million yuan, down 92.77%. Huge loss to this situation in a showdown of three large steel giants.
If we say that Baosteel and Anshan Iron and Steel huge loss market psychologically prepared for the huge loss Wuhan Iron and Steel have been caught unprepared. Because in the previous few months, Wuhan Iron and Steel is the largest iron and steel stocks in the brokerage analysts are the main push of a card. But the fact is that the expectations are too high.
Wuhan Iron and Steel source of profits accounted for 50% of the "national treasures"-oriented silicon steel prices since the fourth quarter of last year plummeted nearly 50% until the second quarter of this year, only low stabilization, making the level of corporate profits dropped significantly, the average gross margin from a year earlier 31% down to 7.3%. Many organizations have begun to fret that the silicon steel monopoly status of Wuhan Iron and Steel Baosteel under the impact of an increasingly strong, can keep up to what date.
It is noteworthy that a quarter of Wuhan Iron and Steel low-profit, operating profit of 360 million, while the second quarter operating profit 310 million there are 309 million from investment income (including 69% from disposal of available for sale financial assets), which shows that Wuhan Iron and Steel 2 only a quarter of its own operations to achieve break-even, the actual earnings well below a quarter.
In other words, 4 trillion economic stimulus plan, in the second quarter had little impact on the Wuhan Iron and Steel, the situation even worse. In the broad market through the broken colored aluminum, the three major steel firms led the fall of the collective performance of broad market eventually lost a leg. 8 end of the market into the most fanatical panic.
Surplus is not the backward production capacity, advanced production capacity
Wuhan Iron and Steel performance is their colors, a collective eliminate backward production capacity, a consequence.
2008 sheet output accounted for 87.39 percent share of total output, known as the "most representative of the direction of the steel industry enterprises" Angang Steel Company Limited (000898, stock bar) (000898.SZ) is typical of the worst. In the first half loss of 1.5 billion, net profit of 126.14 percent year on year reduction.
In sharp contrast, the main low-end steel Xinxing Ductile Iron Pipes (000,778, stock bar) (000778.SZ) in the first half year net profit increase of 21.19%, far beyond the three major steel enterprises. Similarly, the proportion of relatively large Tangganggufen wire (000709, stock bar) (000709.SZ) are also in the first half reached a basic break-even.
4 trillion economic stimulus plan boost steel demand infrastructure to go with the three major high-end line of Iron & Steel Group has nothing to do, which is another huge imbalance.
After several years of industry consolidation, all the iron and steel enterprises competing high-end projects launched to develop high-end products, intensifying the phenomenon of redundant construction. Baosteel chairman Xu Lejiang recently in Lujiazui (600,663, stock bar) Forum pointed out: "The National Iron and Steel Industry 650 million tons production capacity, excess capacity is not only backward, and advanced is also excess capacity." He pointed out that Baosteel's stainless steel industry is a serious loss; In the following another forum, he pointed out that the shipbuilding cycle of thick steel plate is also facing the problem of excess production capacity.
According to "My Iron and Steel net" statistics, at present, China's stainless steel plate, strip the existing production capacity has more than 13 million tons, while the actual release of the output was only 6.9 million tons. The large number of private steel mills took over the low-end wire of the votes, such as sand that became the largest steel wire manufacturer.
And as 4 trillion yuan of investment driven, many large steel mills are now ignored rather low-end products sells high-end production but depressed. This has resulted in two results, the other is sand on behalf of a private steel mill steel as strong demand for iron ore, while the state-owned steel enterprises continued to excess, resulting in long-short iron ore negotiations Miju sides. Second, wire rebar prices continued to climb, August 6 to 4670 yuan / ton of high-priced, or far exceeding the plate, recently been a major adjustment, there are 3700 yuan / ton level.
From this point of view Glimpse of China's current round of economic adjustment and the stock market crash, with a strong industrial structure is indeed the internal contradictions in nature.
Wuhan Iron and self-help and take the turn back
It is in this context, the Wuhan Iron and Steel dished out a refinancing plan, the subject matter of their investment is no longer a high-end production capacity, but low-end wire.
"This time the financing of the program is purely an alternative placement of shares of Wuhan Iron and Steel's previous failed warrants financing options, and the amount of financing more." Shares for the Wuhan Iron and Steel (600005.SH) the latest financing options, the Shanghai Securities analyst Zhu China pointed out sharply.
12 billion financing, 62.8 billion for acquisition of Wuhan Iron and Steel Group, held by the limited liability company Echeng 77.6% of the shares of Wuhan Iron and Steel Group Powder Metallurgy Co., Ltd. 100% of the shares, and metallurgical slag use of relevant operating assets and physical assets, liabilities and research classes. In addition, the Wuhan Iron and Steel will invest 1.21 billion yuan acquisition of the Group of pellet production facilities in the project.
"This financing is basically no suspense Wuhan Iron and Steel," a well-known brokerage analyst at Beijing, told reporters that "the resistance is relatively small allotment funding for the original shareholders, the allotment price is much lower than the market price for shareholders is very cost-effective. "
"And to the Wuhan Iron and Steel, the allotment process to be simpler than the issuance, at the approval level, such as shareholders, some of the Assembly's deliberations will be smooth."
However, this relatively smooth financing, but also has quite tasteless but wasteful to discard the flavor.
Most analysts have said the polite tone of voice, Wuhan Steel shares after the acquisition of E can not only improve productivity, diversify its product mix, but also in the current context of investment-led economy to enjoy strong demand for steel caused by the construction-related benefits.
But there are also brokers pointed out that the acquisition of the assets of Wuhan Iron and gold content is worth the scrutiny.
Zhu Min said: "The placement of shares not Wuhan Iron and Steel Group's acquisition of domestic and foreign mining assets, the acquisition of assets, ROE is doubtful, and perhaps not as good as the existing company's assets."
