The Analysis and Forecast of Angang Steel Company Limited of 2008

The Analysis and Forecast of Angang Steel Company Limited of 2008

In 2007, the total income of Angang Steel Company Limited was 65.499 billion yuan, an increase of 20.6 per cent year-on-year and net profit of 7.525 billion yuan, an increase of 9.9 per cent year-on-year, the return of net assets was 13.87 percent

Company performance of the first quarter of 2008 has remained reasonable pace, and the operating income was 18.586 billion yuan, an increase of 17.2% year-on-year, a total profit of 3.147 billion yuan, down 9.5 percent year-on-year, and net profit 2.443 billion yuan, an increase of 2.1 percent year-on-year. The company's first quarter gross profit margin was 16.7 percent, has a significant increase than the second half of 2007, this has reflected the fact that the steel price has increased more than the main raw material price increased in the first quarter of 2008.

Yingkou Bayuquan port 5 million tons of steel project will be completed and trial in August of 2008, which will raise up 31% conpany’s capacity to 21 million tons. This project will be breaks even in 2008, and after it fully put into production in 2009, it will be a 30% increase of the company’s overall profitability bases on unchangeable conditions as present.

The steel industry is still in short-term upward trend. The average steel price is expected to rise 20% in 2008, amid the price will maintain a sustained rising trend in the first half of 2008, but, due to the seasonal factors, the price will fall in the third quarter, the price in the fourth quarter of 2008 will depend on the macroeconomic, slowing exports, manufacturing profits. Thus, overall, in terms of the steel industry in a particular period, such as the output reduces, restructure and adjustment, the steel industry still have the ability to reduce the costs. The steel price will remain a high level in 2008, some uncertain factors, such as the macroeconomic policy, the demands of steel whether slow down will affect the steel price of 2009.

1. Profile

2. Analysis of performance of 2007
2.1. The data of performance of 2007
2.2. Analysis of performance of 2007

3 Analysis and forecast of 2008
3.1. 2008 first quarter operating data
3.2. Analysis and forecast of the cost of 2008
3.3. Analysis and forecast of the price of 2008

4. Bayuquan project
4.1 Brief of the project
4.2. The forecast of the capacity of the Project

5. The forecast of profit of 2008

6. Analysis of China steel industry in 2008


Charts
Table: Financial data
Figure: Ex-works Prices
Figure: The gross profit margin
Figure: The price of steel on Shanghai market
Figure: Forecasts of steel price for the second quarter of 2008
Table: Bayuquan project designed capacity