Hebei Iron & Steel Group 3 listed companies, the final integration of an immortal. A new look Hebei Iron & Steel (000709) became the sole subsidiary of Hebei Iron and Steel Group's steel main listed company, January 25, 2010, the company shares to resume trading. The new company has leapt to 20 million tons production capacity level just shy of Baosteel to become the country's second largest listed steel enterprises. Meanwhile, the company's industry position and pricing power greatly enhanced. Along with the continuous injection of the follow-up of assets, Hebei Iron and Steel is expected to be A shares of the largest iron and steel manufacturers.
The country's second largest steel enterprises listed on debut
Iron and steel industry analyst with CITIC Securities Chung Dong-young that by the Handan Steel, Tangshan Iron and Steel, bearing steel three companies formed Hebei integrated iron and steel, steel 100 percent increase in production capacity, product structure is more perfect to become the country's second-largest steel companies.
"My iron and steel" analyst Xu Xiangchun that consolidation, Hebei Iron and Steel in the north, the construction steel market pricing power is more prominent, while hot-rolled products, the impact has been greatly enhanced.
Chung Dong-young said the convertible absorbed after the merger, the new share capital of Hebei Iron & Steel Co., Ltd. from 36.3 million shares to 6.88 billion shares, an increase of almost 90%; steel production capacity from 10 million tons to 20 million tons, production capacity increase of 100 %.
China Merchants Securities analyst Zhang Bao steel industry believe that on the one hand, the new position of Hebei steel industry, a substantial increase; the other hand, a richer product mix, market share sharply. Survival of the company product mix will cover the rebar, wire, profiles, hot-rolled plate, cold rolled sheet, plate, and vanadium high strength (high-strength news) degree of steel and many other varieties, has increased the proportion of high-end products.
Chung Dong-young said that in the integration of prior Tangganggufen and Handan Iron & Steel product mix is similar to more heated competition in the industry. After integration, both in raw material procurement, the downstream integration of resources to play a greater synergy.
A share is expected to get on the top spot steel prices
China Securities Journal noted that in the follow-up of assets into the area, Hebei Iron and Steel Group has made a commitment to absorb at the completion of the merger within a year convertible first Wuyang Iron and Steel, Hebei Iron and Steel Group held equity and Steel Group announced that high-quality steel core business assets into the listed company survival . Therefore, listed companies, Hebei Iron and Steel, its production scale is also expected to leap onto a new level, and there is likely to exceed the domestic steel leader of a group of Baosteel, which sit A steel company shares the top spot.
Access to Information show that Wuyang Iron and Steel has two generous 4200mm and 4100mm plate production line with annual output of 3 million tons steel, generous plate 2.6 million tons, sales income Chaobaiyi yuan's overall strength. Announced that the Group's main products include steel wire, rebar, small profile, narrow strip and welded pipe and other construction steel, 2008 steel production was 5.2 million tons.
In addition, Hebei Iron and Steel Group to further make a commitment to absorb the convertible within three years after completion of the merger, the Group will come to Han Bao Steel Group, Handan Iron & Steel Co., Ltd., Tangshan Stainless Steel Co., Ltd. is also related to equity into the listed company. This means that Hebei Iron and Steel will be added to 7 million tons capacity.
The total market value is still room for
Chung Dong-young said that the consolidation, from the market value of the level of view, Hebei Iron and Steel's total market value of 48.8 billion yuan, as an annual output of 20 million tons of steel companies, its market value per tonne of steel is only 2440 yuan / ton, far below the current iron and steel plates The average market value of the level of 3570 yuan per ton steel. Listed companies in the steel industry, similar to the scale of production capacity the market value of 100 billion stake in Angang, Baosteel shares worth 154 billion.
Therefore, Hebei Iron and Steel further enhance the total market value of space; In addition, although the current ROE level of Hebei Iron and Steel Anshan Steel and Baosteel is lower than, but the next step to be injected into Wuyang Iron and Steel, Hebei Iron and Steel, Xuan Steel Group, etc. have higher asset quality, profitability can be significantly improved.
