Valin Steel(SZ:000932)2023-04-11 12:18Financial Performance - In 2022, the steel industry faced a challenging environment with a significant decline in profits, with member units of the China Iron and Steel Association reporting a total profit of 98.2 billion yuan, a year-on-year decrease of 72.27% [2] - The company achieved a total profit of 8.673 billion yuan in 2022, down 27% year-on-year; net profit attributable to shareholders was 6.379 billion yuan, a decline of 34% [2] - EBITDA was 12.031 billion yuan, reflecting a 22% decrease, indicating a continued verification of profitability stability [2] Key Business Highlights - Two main subsidiaries reported counter-cyclical growth: VAMA, the automotive sheet joint venture, achieved a net profit of 1.652 billion yuan, a 169% increase year-on-year, with automotive sheet sales reaching 925,500 tons, up 6.4% [2] - Hunan Henggang achieved a net profit of 699 million yuan, a 93.2% increase year-on-year, with export sales rising by 31%, increasing the export sales ratio from 20% in 2020 to 30% in 2022 [3] Strategic Developments - The company focused on high-end product development, with R&D investment of 6.453 billion yuan, accounting for 3.8% of revenue; key product steel sales reached 15.88 million tons, a 5 percentage point increase from 2021 [3] - The company successfully developed high-end products such as super wear-resistant steel and special thick ship plates, contributing to a shift towards high-end differentiated products [3] Operational Efficiency - The company has been upgrading production lines to enhance efficiency, with significant capital expenditures aimed at supporting high-end product structure upgrades [3] - Cost reduction strategies were implemented, including lowering procurement costs and energy costs, with self-generated electricity reaching 8.9 billion kWh, an increase of 1 billion kWh from the previous year [4] Environmental and Technological Initiatives - The company is advancing green and intelligent transformation, focusing on reducing emissions and enhancing energy efficiency, with a goal of achieving ultra-low emissions in key processes [4] - The company has been recognized for its intelligent manufacturing initiatives, with projects receiving national accolades [4] Future Outlook - The company plans to continue its high-end, green, and intelligent development path, with new projects expected to enhance production capacity and market competitiveness [5] - The demand for high-grade electrical steel is anticipated to grow, driven by the booming new energy vehicle market and stricter energy consumption standards [6] Market Conditions - The steel industry is expected to face challenges due to a potential decline in demand, particularly in the construction sector, while industrial steel demand remains stable [7] - The automotive sector is experiencing a shift, with traditional fuel vehicles under pressure and new energy vehicles growing rapidly, although recent price cuts by major manufacturers have led to a decrease in consumer demand [7]