Global mining M & A fell sharplyJanuary
In the first quarter of this year, the global outbreak of the New Coronary Pneumonia epidemic brought economic recession and increased the risk of financial crisis. Commodity prices fell rapidly. The aluminum price once dropped from 14,300 yuan / ton to 11,500 yuan / ton, and the alumina price from 2,610 yuan / Tons fell to 2350 yuan / ton.
The spread of the epidemic has led to poor logistics, reduced or suspended production of industrial enterprises, increased inventory of electrolytic aluminum, and the industry ’s loss side has gradually expanded, impacting the global aluminum supply chain, industrial production, terminal consumption and investment. Demand for China ’s aluminum industry has been weak, inventory has increased, financial status and Operating performance was under pressure and the market shrank significantly.
According to the currently disclosed financial reports or notices of domestic listed companies in the aluminum industry in the first quarter of 2020, this article covers China Aluminum (601600), China Metallurgical (000758), Mingtai Aluminum (701677), Shenhuo (000933), The performance of 10 aluminum producers including Changlu (002160), Yunlu (000807), Nanshan Aluminum (600219), Western Mining (601168), Xinjiang Zhonghe (600888), Jiaozuo Wanfang (000612) and others analysis.
The performance of aluminum companies has increased and decreased. The revenues and profits of six companies have declined on a large scale. Non-ferrous metal giant China Aluminum (601600) achieved operating income of 39.66 billion yuan in the first quarter, a year-on-year decrease of 8%, and realized a net profit attributable to shareholders of listed companies of 30.718 million yuan, a year-on-year decrease of 93.1%; Western Mining (601168) is expected to deduct non-ferrous metals The net profit of recurring gains and losses will decrease by about 200 million yuan over the same period, a year-on-year decrease of about 81%; the total operating income of CNMC (000758) for the same period was 1.36 billion yuan, a year-on-year decrease of 49.3%, and operating cash flow fell by 128.6% to -380 million yuan; Shenhuo (000933) achieved total operating income of 3.69 billion yuan in the first quarter, a year-on-year decrease of 21%, a decrease from the same period last year, and a net profit attributable to the mother of 39.309 million yuan, a year-on-year decrease of 30.3%; Mingtai Aluminum ( 701677) In the first quarter, it realized revenue of 3.036 billion yuan, a year-on-year decrease of 10.81%, and realized a net profit of 121 million yuan, a year-on-year decrease of 15.16%. According to the performance announcement issued by Changlu (002160), its first quarter loss was 9 million to 13 million yuan yuan.
The profits of the four companies have increased, achieving a "starter" against the trend. Yunnan Aluminum Co., Ltd. (000807) issued a performance forecast. It is expected that the net profit attributable to the mother from January to March will be 170 million yuan, an increase of approximately 236% year-on-year; Nanshan Aluminum (600219) achieved operating income of 4.946 billion yuan in the first quarter, which is attributed to shareholders of listed companies. Net profit was 293 million yuan, a year-on-year increase of 15.66%, and net cash flow from operating activities was 520 million yuan, a year-on-year increase of 84.97%; Shandong Hongqiao New Material Co., Ltd., a wholly-owned subsidiary of China Hongqiao, had a net profit of 11.28 in the first quarter 100 million yuan, an increase of 43.88% year-on-year; Xinjiang Zhonghe (600888) achieved sales revenue of 919 million yuan in the first quarter, a decrease of 21.46% year-on-year, and realized net profit attributable to the mother of 64 million yuan, an increase of 47.49% year-on-year, corresponding to basic earnings per share of about 0.06 Yuan / share.
It is understood that the decline in the performance of various aluminum companies in the first quarter was mainly due to epidemic factors that led to limited production and transportation, and upstream and downstream operations were suspended. At present, domestic production and sales have basically returned to normal, but overseas operations have not yet recovered from the epidemic. In order to achieve growth against the trend, various companies have also come up with their housekeeping skills. Since the second quarter, the aluminum price has slightly recovered after the plunge, the downstream consumption has gradually recovered, and the company's production and operation have improved. In this respect, thanks to the timely support policies issued by the state to encourage and guide enterprises to overcome difficulties, on the other hand, aluminum companies in various regions are actively adjusting their strategies and looking for space on cash flow and operating costs to maintain the company ’s operations. Seek development in China.
Various measures to reduce costs. Faced with the pressure of double revenue and profit decline, Chalco anchored economic benefits and cash flow in the first quarter, quickly adjusted production plans and business strategies, implemented a series of extreme cost reductions such as early maintenance of high-cost production lines and compression of non-urgently needed investments. Measures, the cost of alumina decreased by 6.8% year-on-year, and the cost of electrolytic aluminum decreased by 4.5% year-on-year, the cost competitiveness continued to rise. It is worth noting that the relocation of high-cost production capacity is another significant manifestation of cost reduction. Shenhuo ’s non-net profit deduction in the first quarter hit a single-quarter high since the end of 2017: on the one hand, affected by the year-on-year decline in the prices of raw materials such as alumina, the profit per ton of aluminum continued; on the other hand, the company moved from the high-cost electrolytic aluminum area, not Then drag down the company's performance.
Adjust production and management strategies. Relying on the advantages of a complete aluminum industry chain production line, Nanshan Aluminum Company adjusted the product structure of upstream and downstream industries, reduced production costs, and timely paid attention to the new coronary pneumonia epidemic situation, timely evaluated the various effects on production, supply and marketing, and adopted charter shipping and point-to-point procurement Reducing the impact of goods and other means, fully studying and predicting the market, timely adjusting sales strategies and production planning cycles, etc.
Increase investment in domestic projects to hedge risks of foreign projects. Mingtai Aluminum's 125,000-ton vehicle transportation aluminum alloy plate project and aluminum strip upgrade project are gradually put into production. The aluminum alloy rail car body project is under heavy investment in the capital construction boom, and it is expected to hedge the decline of overseas business through the growth of domestic business. Futures Link, Chinalco carries out the current-time linkage preservation of the products sold, and realizes a preservation benefit of 404 million yuan. After including this part of the profit, the net profit attributable to shareholders of the listed company after deduction of non-recurring gains and losses is 112 million yuan, year-on-year Increased by 55 million yuan; operating net cash flow increased by 2.622 billion yuan year-on-year, and net interest-bearing debt decreased by 800 million yuan from the beginning of the year. According to the forecast issued by Jiaozuo Wanfang, the company achieved net profit attributable to shareholders of listed companies in the first quarter of 70 million to 90 million yuan, including the impact of non-recurring gains and losses including hedging business income on the company's current net profit The amount is about 45.38 million yuan.
Key projects are carried out in an orderly manner to deal with the impact of the epidemic and make up for losses. Project construction is the starting point, especially the acceleration of major industrial projects, which has the role of “main engine” for expanding effective investment. Facing the double pressure of the impact of overseas epidemic situation and economic downturn, domestic aluminum enterprises regard the project construction as a powerful hand for economic work, and use the growth momentum of investment to hedge the downward pressure on the economy.
Cash inflows have improved significantly, and projects under construction continue to advance. Nanshan Aluminum's presence in the high-end market significantly improved the company's cash inflows. During the reporting period, the company's net operating cash flow was 520 million yuan, a significant increase of 84.97% year-on-year, mainly due to strengthened cash collection efforts. The significantly improved cash flow status demonstrated the company's outstanding market competitiveness and was beneficial to the company Respond to short-term shocks caused by the current epidemic. It is understood that the company's Indonesian Bintan Nanshan Industrial Park's 1 million tons alumina project is successively undertaking equipment installation. The first phase is expected to be put into production across the board from the end of 2020 to early 2021, and the second phase of the project has also completed the injection of subscription equity funds. In addition, the technical transformation project of high-strength, high-toughness and high-end aluminum alloy production lines for aerospace has also begun trial operation; the high-performance high-end aluminum foil production line project and the automotive lightweight aluminum sheet production line technical transformation project are also advancing as planned.
Ensure the supply of ore and enhance the global resource allocation capability. While doing well in epidemic prevention and control and resuming production and production, on April 6, the 23km belt conveyor system of Chinalco Guinea's Buffalo Bauxite Project was successfully commissioned for heavy load. The project maintains 1.75 billion tons of exploitable resources and can be sustainably mined for 60 years. The design scale of the first phase project is 12 million tons of high-quality bauxite annual output. It is reported that the first bauxite from Chinalco Guinea has been shipped back to domestic enterprises for use in February, and the second ship has also set sail back to China.
Since the outbreak of new technologies to release new kinetic energy, China's aluminum enterprises have given full play to their technological innovation advantages, supported the accelerated promotion and application of new technologies, new industries, new formats, and new models developed by enterprises and institutions, and accelerated the rise of new kinetic energy.
R & D investment has increased significantly, and high-end manufacturing has continued to break through. In order to expand the sales of aviation business products and car body business products, Nanshan Aluminum continued to increase investment in research and development, and the research and development expenses increased by 339.95% year-on-year. With the gradual release of new project production capacity, the company's high-end manufacturing continued to make breakthroughs. At present, the company has a number of high-end customers at home and abroad in the new energy vehicle industry chain and aviation industry chain. The high-end market is stable and the market position is constantly improving. Following the development trend of lightweight vehicles, the company has reached cooperation with Audi, Daimler, General Motors and other companies, and the sales volume of domestic OEMs such as FAW, SAIC, and GAC has continued to increase; in the field of new energy vehicle power battery foils, it has become Ningde Power battery customers such as Times, Guoxuan Hi-Tech, Yiwei Lithium Energy and so on. At the same time, the company has accelerated its entry into the field of higher value-added aerospace parts processing. It has cooperated with aircraft manufacturers such as Boeing, Airbus, and Safran to become a domestic company that can provide wheel products for civil aviation aircraft. The revenue of high-end products is considerable .
Promote the construction of intelligent information technology to improve production and transportation efficiency. Mingtai Aluminum fully promotes the construction of intelligence and informatization, implements electronic management of company personnel and goods, and the unmanned weighing and electronic order distribution system greatly improves the efficiency of product sales and logistics, and also reduces distribution errors rate. In the next step, the company will establish an intelligent operation and maintenance platform to realize intelligent control and automated operation, exert the powerful functions of big data, improve production and transportation efficiency while reducing operating costs, and ensure the company's competitiveness in the industry.