In terms of individual stocks, as of June 18 this year, 10 steel stocks have been increased by financing customers, with a total net purchase amount of 2.64 billion yuan. Among them, the net purchase amount of financing of four steel shares, including Shagang, HANGGANG, Nangang and Shougang, exceeded 100 million yuan, respectively 1.17 billion yuan, 858 million yuan, 301 million yuan and 104 million yuan.
Why can the tepid steel stocks win the favor of institutions? Liu Youhua, a senior researcher of private placement platoon network, told Securities Daily that opportunities in the steel industry mainly come from valuation restoration and demand side recovery. Under the double stimulation of valuation advantage + demand recovery, steel stocks are expected to rebound.
In August 2019, Soochow securities, which had published the view of three bad positions of steel stocks, also made it clear in recent days that transformation and fundamental resonance promote valuation restoration. At present, steel stocks have very safe and rare allocation opportunities. There are three main logic: first of all, the valuation of steel plate is low enough, and it has reached the bottom area in the past 20 years, with a market to net ratio of only 0.83 times (the lowest in history is 0.79 times). Second, the fundamentals of steel stocks were better than expected. Third, the transformation of the steel plant IDC, special steel, iron ore, etc., contributed a strong alpha.
In this regard, the analysis of Huabao Securities believes that the continuous increase of infrastructure investment, the gradual stabilization of real estate investment, and the gradual resumption of work of important overseas developed economies provide support for the demand of steel downstream; however, restricted by high steel inventory and tight iron ore supply, it is difficult for steel enterprises to significantly improve their profits. Structurally, the demand of construction investment industry in the downstream of iron and steel industry is better than that of manufacturing industry, showing a long strong board weak pattern. Warburg securities suggests paying attention to the structural opportunities of steel industry brought by stable investment and expanding domestic demand.
In terms of agency rating, in the past 30 days, a total of 9 steel stocks have been favored by the agency. Among them, Hangzhou Steel Co., Ltd., Shagang Steel Co., Ltd. and Mingguang Steel Co., Ltd. are all rated as buying or increasing by the agency twice or more.