The annual report 丨 back to the “Qingshan Department”, the cold -rolled stainless steel giant Yongjin shares are good to “take cool”?

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The annual report 丨 back to the “Qingshan Department”, the cold -rolled stainless steel giant Yongjin shares are good to “take cool”?

Under the big tree is good and cool

Author | Liang Chunfu

Edit | Cai Zhen

Source | Mustang Finance

A “epic -level vacation” in mid -March allowed Qingshan to hold this global stainless steel industry giant to know, and also exposed a group of allies in the “Qingshan Department” to the spotlight. Recently, China’s cold -rolled stainless steel faucet (603995.SH) disclosed the 2021 financial report, the data shows,

Last year, the company’s revenue was 31.37 billion yuan, a year -on -year increase of 53.4%; net profit was 590 million yuan, a year -on -year increase of 42.6%.

The concentration of suppliers and customers of Yongjin Co., Ltd. is very high and frequent transactions, and Aoyama Holdings is both suppliers and customers. In 2021, the affiliated procurement of Yongjin Co., Ltd. and Qingshan Holdings and its subsidiaries reached 11.059 billion yuan.

However, since its listing in 2019, the revenue and net profit of Yongjin Co., Ltd. have steadily increased, but the gross profit margin is still much lower than that of companies in the same industry. With the continuous investment expansion of Yongjin Co., Ltd. and a series of actions of overseas companies, the company’s future debt repayment pressure will also be further increased.

The gross profit margin in the past three years is nearly 5%

Yongjin Co., Ltd. mainly produces stainless steel cold -rolled plates, and its products are widely used in construction, automobiles, home appliances and other fields. The founder of the company was Yu Jiqun and Cao Peifeng, a businessman in Ningbo. Yu Jiqun was born in July 1962. At the age of 21, he served as the head of the head of Ningbo General Machinery Factory. After 14 years, he was promoted to the director of the factory. His wife Cao Peifeng also served as an accounting position in Ningbo General Machinery Factory for 13 years.

At the age of 35, Yu Jiqun became the general manager of a state -owned enterprise in Ningbo. Subsequently, 37 -year -old Yu Jiqun followed the spring breeze of the same period and founded Beilun economy, mainly engaged in real estate development business. In 2002, Yu Jiqun came to Lanxi City, Zhejiang Province to invest in and start a business. In the second year, he founded 5 million yuan in Lanxi and founded Lanxi Yingjin Stainless Steel Co., Ltd. (the predecessor of Yongjin Co., Ltd.), specializing in the cold -rolled stainless steel industry.

In June 2009, the overall change of Lanxi Yingjin Stainless Steel Co., Ltd. was changed to a company Co., Ltd. at that time, with a valuation of 121 million yuan. Since then, the company has gradually developed and grows. After many capital increases and share expansion, Guoxin Hongsheng, who has introduced the background of Shenzhen’s state -owned assets, and investors such as Wanfeng Jinyuan and Qingdao collaborative.

In December 2019, Yongjin was listed on the Shanghai Stock Exchange. After the shares lifted the ban, exterior investors such as Guoxin Hongsheng and Wanfeng Jinyuan have been cash out. This also strengthened the control of the company’s control of the company. As of the end of 2021, the chairman Yu Jiqun held a 25.81%equity of the company.

The two husbands and wives hold a total of 46.79%of the company.

His son Yu Chenjie served as a director and held a small amount of shares of the company. Like his father, he was a Canadian nationality.

The couple of Yu Jiqun and Cao Peifeng obtained the Permanent residence in Canada in April 2007, and in May 2012, Yu Jiqun officially joined Canada. The information and reports on the market are very limited.

The second from the left is Yu Jiqun Source: Yongjin Co., Ltd. official website

After nearly 20 years of development, Yongjin shares ranked among the first echelons in the domestic cold -rolled steel industry. In 2020, the company’s wide -rolled and precise cold -rolled products market share ranked third and first in the country, respectively. but,

年报风云丨背靠“青山系”,冷轧不锈钢巨头甬金股份好“乘凉”?

Yongjin is currently focused on precision cold rolling and wide -rolled cold -rolled products. It is essentially a processing enterprise and earns processing costs. The comprehensive gross profit margin of the product remains at about 5%year -on -year, far lower than the level of the same industry.

The 300 -series wide -width cold rolling plate with the highest proportion of the company’s output was only 3.7%in 2021, an increase of 0.65%over last year. The precision board with the highest gross profit margin fell by about 2%compared with last year.

Picture source: Yongjin Co., Ltd. 2021 annual report

According to the financial report, in 2019, 2020, and 2021, the comprehensive gross profit margin of Yongjin’s products was 5.49%, 5.04%, and 5.15%, respectively. Compared with the gross profit margin of Fushun Special Steel and Tai Steel in the same industry, the gross profit margin of nearly a year or two was about 20%and 13%, respectively.

Even if it is subdivided into the cold rolling plate market, the gross profit margin of Yongjin shares is not high. According to the statistics of Zhuo Chuang Information of the Commodity Consultation Institution,

In the first quarter of 2022, the gross profit margin of cold rolling plate was 9.01%.

Deep binding Aoyama Holdings

Yingjin Co., Ltd. focuses on stainless steel cold rolling business. The upstream is stainless steel smelting and hot -rolled enterprises. After purchasing stainless steel raw materials from them, they are processed. It was then sold to downstream stainless steel precision processing and terminal manufacturing companies. Its customers include Haier, Midea, Supor, Changying Precision and other well -known companies.

As the world’s largest stainless steel production enterprise, Aoyama Holdings has a large number of subsidiaries. The business involves the smelting, hot rolling, and trade circulation of the stainless steel industry. In the process of production and operation, Yongjin’s shares cannot inevitably occur with the “Qingshan Department”.

In fact,

During the growth of Yongjin Co., Ltd., Aoyama Holdings decorated suppliers, customers, and partners multiple roles, which have cooperated closely for more than ten years.

The related procurement of Yongjin Co., Ltd. is mainly implemented through the subsidiary Fujian Yijin. Fujian Yijin was jointly invested by Qingtuo Group (post -equity transfer to Dingxin Technology) under the establishment of Yongtuo and Qingshan Holdings. Related party.

The financial report shows that in 2019, 2020, and 2021, the total related procurement of the company’s related procurement under the same control of the company and its same control was 4.497 billion yuan, 7.677 billion yuan, and 11.059 billion yuan, respectively, accounting %, 39.07%and 36.67%.

年报风云丨背靠“青山系”,冷轧不锈钢巨头甬金股份好“乘凉”?

The affiliated procurement of Yongjin and Qingshan increased year by year, from 2.4 billion yuan in 2015 to 11 billion yuan last year.

It is worth noting that from the perspective of financial reports, Yongjin has been listed in Qingshan Holdings and Guangdong Guangqing as two suppliers. But in fact, the relationship between Guangdong Guangqing and Qingshan Holdings is also “unusual.”

After the equity penetrated, Guangdong Guangqing held 98%of the Guangdong Guangqing Metal Technology Company. The latter was jointly established by the “Qingshan Department” and Guangdong State -owned Enterprise Guangxin Holdings Group. Among them

The “Qingshan Department” holds a total of 50.1%of the shareholding, and the total of 48.72%equity in Guangxin Holdings Group and its subsidiaries.

年报风云丨背靠“青山系”,冷轧不锈钢巨头甬金股份好“乘凉”?

In addition, Aoyama Holdings and Guangxin Holdings Group are also related parties and important partners. Qingshan Holdings and Guangxin Holdings Group established a joint venture in Indonesia, Indonesia’s Guangqing, the main operation of the Indonesian nickel iron mine project of Qingshan Holdings. In Aoyama’s 2022 bond report, Guangxin Holdings Group was also listed as a related parties.

Photo source: 查 : :

年报风云丨背靠“青山系”,冷轧不锈钢巨头甬金股份好“乘凉”?

In terms of business cooperation, many subsidiaries of Yongjin Co., Ltd. settled in the industrial park under Qingshan Holdings, such as Fujian Yongjin, Qingtuoka (Aoyama will be transferred to Yongjin at the end of 2020) production base next to Qingshan Ningde, Fujian Ningde, Aoyama The layout of the production base; Guangdong Yingjin Production Base is close to Guangdong Guangqing Metal Technology Co., Ltd. This is convenient for raw materials to purchase directly, saving a lot of transportation costs for Yongjin.

As can be seen,

The in -depth binding of Qingshan, on the one hand, ensures the supply of raw materials of Yongjin’s shares, on the other hand, it also guarantees the profit margin of Yongjin in the industrial chain.

According to the “Prospectus”, Dingxin Technology of Qingshan Holdings subsidiary is supplied by Fujian Yijin and Jiangsu Yijin. The purchase price is 50-150 yuan/ton. In terms of payment conditions, the industry generally adopts the settlement method of delivery to delivery, while Qingshan Group and its shareholding company Guangdong Guangqing adopt a goods-to-payment policy on Jiangsu Yijin, and generally gives 7-15 days to Fujian and Guangdong Yingjin. During the accounting period, this is significant for alleviating the funds of Yongjin.

In recent years, while Yongjin’s production capacity has expanded, it has also deployed globalization, and Qingshan Holdings has made a lot of effort. In 2019, the first overseas base was deployed, the Vietnamese subsidiaries were established, and 250,000 tons of wide cold rolling capacity was built. Subsequently, Thailand Gold and Indonesia were established in 2021 and 2012. Among them, Yajin, Indonesia, holds 40%equity of Qingshan Holdings subsidiary, and holds 60%of the shares of Yongjin shares. The total investment is expected to be 2.133 billion yuan.

Artificial, electricity, and land costs in Southeast Asia have great advantages, and the demand for cold -rolled stainless steel has continued to grow. As a result, the production capacity of Yongjin has a certain development potential. The financial report shows that the overseas sales of Yongjin Co., Ltd. in 2021 were 3.608 billion yuan, an increase of 189%year -on -year.

年报风云丨背靠“青山系”,冷轧不锈钢巨头甬金股份好“乘凉”?

In the domestic market, the current four major domestic production bases in Yongjin will have three major bases that will have new capacity. Guangdong Yingjin’s “annual processing of 320,000 tons of precision stainless steel plate band project” has been put into trial production at the beginning of the year; the company’s IPO fundraising project “annual processing of 75,000 tons of ultra -thin precision stainless steel plate band project” is expected to be put into production in May this year; Zhejiang Yijin The convertible bond fundraising project is also expected to be completed and put into operation by the end of this year.

According to the Guosheng Securities Research Report, according to the calculation of the project plan to be under construction/under construction,

It is expected that the production capacity of Yongjin will increase from 2 million tons to 4.15 million tons from 2021 to 2023

Essence In addition, Yongjin Co., Ltd. acquired the silver sheep pipe industry in 2021 to laid out the stainless steel water pipe business.

However, with the expansion of Yongjin’s investment in the investment, the company’s debt level has also risen. At the beginning of 2021, the total liabilities of Yongjin shares were 2.597 billion yuan, and the asset -liability ratio was 41.84%. By the end of 2021, the total liabilities rose to more than 5.517 billion yuan, and the asset -liability ratio rose to 55.9%.

What do you think about the deep binding of Qingshan Holdings? Welcome to comment.

Picture source: Yongjin Co., Ltd. 2021 annual report

Product Recommendation: Cold rolled Inox sus304 stainless steel tube/pipe