Daye Special Steel changed its name to CITIC Special Steel Big Mac and completed the overall listing.

category:Finance
 Daye Special Steel changed its name to CITIC Special Steel Big Mac and completed the overall listing.


According to the latest performance forecast released by CITIC Special Steel, net profit in the first three quarters is estimated to be 3.61 billion yuan to 3.7 billion yuan, an increase of 850% to 874% over the same period last year, and an increase of 35.3% to 38.6% compared with the retrospective adjustment after the same period last year. The growth of performance is mainly due to the increase of sales volume, the optimization of variety structure and the decrease of production cost.

Continuous growth of performance

Daye Special Steel was founded in 1993 and landed on Shenzhen Stock Exchange on March 26, 1997. At that time, the controlling shareholder was Yegang Group and the actual controller was Huangshi SASAC. In 2004, CITIC Taifu Investment (hereinafter referred to as Taifu Investment) under CITIC Group realized the acquisition of Daye Special Steel through direct or indirect acquisition of Metallurgical Steel Group.

In January this year, CITIC Special Steel formally launched the overall listing plan. Daye Special Steel has implemented a major asset restructuring plan to purchase 86.5% of Jiangyin Xingcheng Special Steel Co., Ltd. by issuing shares at a price of 23.179 billion yuan, thus realizing the overall listing of CITIC Group Special Steel Plate.

In August this year, the aforementioned transaction was approved by China Securities Regulatory Commission. CITIC Special Steel officially landed on the A-share market, creating the fastest pace of major asset restructuring of state-owned enterprises of the same scale.

On the evening of October 10, Daye Special Steel announced that, after application and approval by Shenzhen Stock Exchange, the companys securities abbreviated as Daye Special Steel was changed from CITIC Special Steel to CITIC Special Steel from Daye Special Steel from October 11, 2019. The securities code remained unchanged and the company name was changed from Daye Special Steel Co., Ltd to CITIC Taifute Steel Group Co., Ltd.

At present, CITIC special steel is the largest specialized special steel production base in China, with 13 million tons of special steel production capacity, with more than 3000 steel grades and 5000 specifications of special steel products, and the technical equipment has reached the international advanced level. In 2018, Xingcheng Special Steel, a subsidiary of CITIC Special Steel, was awarded the highest competitive rating A+, the only special steel enterprise group among 14 A+steel enterprises. The special steel products of CITIC Special Steel are widely used in automobile, bearing, railway, energy, construction machinery, marine engineering, construction and bridge construction, tooling and other industries, and have a very leading position in various application fields.

Different from the traditional iron and steel enterprises, special steel has a strong anti cycle property, which is also reflected in the performance of CITIC special steel. The three-quarter earnings forecast disclosed by CITIC Special Steel on October 10 shows that the net profit in the first three quarters is estimated to be 3.61 billion yuan to 3.7 billion yuan, an increase of 35.3% to 38.6% compared with the retrospective adjustment after restructuring in the same period last year. The performance growth was mainly due to the increase in sales, the optimization of variety structure and the pressure drop of production cost during the reporting period.

Building Special Steel Aircraft Carrier

The acquisition of Xingcheng Special Steel will enable CITIC Special Steel to be listed as a whole, while the remaining 13.5% equity of Xingcheng Special Steel will become the first single acquisition target after the renaming of CITIC Special Steel.

On the evening of October 10, CITIC special steel announced that the company intends to participate in the bidding for the remaining 13.5% equity of Xingcheng Special Steel held by the controlling shareholder, Taifu investment. If the bidding is successful, the company will hold a 100% stake in Xingcheng Special Steel.

On October 8 this year, Taifu invested in the Jiangsu Property Rights Exchange to publicly list and transfer 13.50% of its shares in Xingcheng Special Steel, with a bottom price of 3.618 billion yuan.

According to the audit, as of April 30, 2019, the total assets and net assets of Xingcheng Special Steel were 60.829 billion yuan and 21.128 billion yuan respectively. Last year, Xingcheng Special Steel realized revenue of 65.405 billion yuan and net profit of 3.922 billion yuan. From January to April this year, Xingcheng Special Steel realized revenue of 21.41 billion yuan and net profit of 1.63 billion yuan.

According to the Articles of Association of Xingcheng Special Steel, the current shareholders of Xingcheng Special Steel have the preemptive right. CITIC Special Steel said that the completion of the acquisition of the remaining 13.50% equity of the holding subsidiary Xingcheng Special Steel is conducive to improving the quality of the companys assets, enhancing sustained profitability and market competitiveness, and is in line with the companys long-term development and the interests of all shareholders.

Talking about the future development, Yu Yapeng said that CITIC Special Steel has formulated the strategic goal of building a high-quality special steel aircraft carrier with an annual output of more than 15 million tons. The endogenous growth of the companys own steel production capacity is limited. Therefore, external mergers and acquisitions and large-scale companies are the established strategy of the group. At the same time, give full play to the development potential of the companys various sectors, do a good job in the vertical integration of various industrial lines and functions, constantly promote the integration of upstream and downstream development of the industrial chain, lock up high-quality raw and auxiliary materials resources, reduce production costs, downward extension of the industrial value chain, improve product added value, and achieve a new breakthrough in the overall efficiency of the company.

R & D of high-end special steel

It is understood that Daye Special Steel is an important part of CITIC Special Steel, with a long history. In the early days of the founding of New China, Daye Special Steel was the Central China Iron and Steel Company at that time. It was joined by Daye Iron Mine and Hanyang Iron Works established by Huguang Governor Zhang Zhidong in 1890, and Hanye Pingmei Coal and Iron Works Co., Ltd. founded by Sheng Xuanhuai in 1908. It can be said that Daye Steel Works and Wuhan Iron and Steel Company were passed down as part of the history of Chinas national iron and steel industry.

With the renaming of Daye Special Steel and the overall listing of CITIC Special Steel, it will have a far-reaching impact on the development of domestic special steel industry in the future.

Yu Yapeng said that CITIC Special Steel will strengthen the prospective and strategic research of the companys development, and gradually build the first steel pipe Research Institute and welding wire Research Institute in China around the 17 advanced steel materials sorted out by the Ministry of Industry and Information Technology. On this basis, it will build a group private cloud platform, complete the cloud transformation of the core business system, and build a special steel research institute. Chengzhi Manufacturing Data Center Platform provides data support for intelligent decision-making and intelligent manufacturing of group enterprises. It is understood that CITIC Special Steels annual research and development of new products accounted for more than 10% of total sales, and annual R&D investment accounted for about 3% of sales revenue. Through breaking through the core technical barriers, key special steels were pushed forward by production, replacing imported special steels by more than 2.5 million tons per year. Yu Yapeng pointed out that in the future, CITIC Special Steel will focus on planned breakthroughs and the larger variety of energy steel (including offshore wind power continuous casting round billet, oil field drilling tool steel, etc.). During the 13th Five-Year Plan period, CITIC Special Steel will further expand its high-end market share in emerging materials such as lightweight, high strength, aviation and nuclear power, and form strategic alliance partners with leading enterprises in SKF, Schaeffler, NTN, Caterpillar and Michelin industries. Source: Responsible Editor of Securities Times: Yang Qian_NF4425

Yu Yapeng said that CITIC special steel will strengthen the forward-looking and strategic research of the companys development, focus on the 17 advanced steel materials sorted out by the Ministry of industry and information technology of the peoples Republic of China, gradually build the first domestic steel pipe Research Institute, welding wire Research Institute and other special steel research institutes, and on this basis, build the groups private cloud platform, complete the cloud migration and transformation of the core business system, and build Chengzhi Manufacturing Data Center Platform provides data support for intelligent decision-making and intelligent manufacturing of group enterprises.

It is understood that CITIC Special Steels annual research and development of new products accounted for more than 10% of total sales, and annual R&D investment accounted for about 3% of sales revenue. Through breaking through the core technical barriers, key special steels were pushed forward by production, replacing imported special steels by more than 2.5 million tons per year.

Yu Yapeng pointed out that in the future, CITIC Special Steel will focus on planned breakthroughs and the larger variety of energy steel (including offshore wind power continuous casting round billet, oil field drilling tool steel, etc.). During the 13th Five-Year Plan period, CITIC Special Steel will further expand its high-end market share in emerging materials such as lightweight, high strength, aviation and nuclear power, and form strategic alliance partners with leading enterprises in SKF, Schaeffler, NTN, Caterpillar and Michelin industries.