Steel and Silver E-Commerce Releases Employee Stock Ownership Plan, Benefits Bind for Future Development April 18, 2018 00:00 Tianfeng Securities Shen Haibing View PDF original

K diagram 300226_1

Shanghai Steel Association (300226)


The company's subsidiaries released the third phase of the employee stock ownership plan. The total shareholding plan share does not exceed 9,632,100 shares, the total amount of funds does not exceed 2,25,059,000 yuan, and the price of company-subscribed stocks is 2.29 yuan per share. Among them, the company’s directors and general managers Mr. Huang Jian, deputy general managers Mr. Wang Xiaonan, Ms. Xu Saizhu, Mr. Yu Dahai, the secretary of the board of directors and chief financial officer Mr. Wu played a total of 2.48 million shares, accounting for 25.75% of the initial scale of the employee’s shareholding plan. .

Employee stock ownership plan binds employees' interests and optimistic about the future development of the company

The employee stock ownership plan is for the company to issue shares directly. The initial share of the company’s directors (excluding independent directors) and senior management’s share of the total share of employee stock ownership plans does not exceed 25.75%. The total number of underlying stocks corresponding to the company's total effective employee stock ownership plan share does not exceed 10% of the company's total equity, and the total number of participants does not exceed 234. According to the 2017 Annual Report of Steel Silver E-Commerce, the total number of employees of the company was 856. The proportion of employees held by the employees exceeded 27.34%, covering all core employees and senior management of the company. They were deeply tied to the interests of the company and were optimistic about the future development of the company.

The two major businesses of consignment and supply chain services promote each other, and the e-commerce platform has entered the harvest period

The transaction scale of the steel and silver consignment business continued to expand, the commission income from transaction services business increased significantly year-on-year, and the gross profit of consignment business increased significantly; at the same time, the company's supply chain service product model ran through, “help you to pick” and “you to spend”. "Products with you" are operating well. We believe that in 2018, if the company’s application for bank credit facilities of RMB 3 billion is approved, the company’s capital scale will be further expanded after the private placement and raising of one billion yuan in financing, and the increase in financing scale will promote the accelerated growth of supply chain services; the average commission service fee The scale of the consignment sales of the enhanced superposition platform will further expand, and the consignment model will maintain high growth into the harvest period.

Data information business accelerates cross-category expansion, and revenue and profit growth is expected to continue to grow rapidly in the coming years

By changing the management of Shandong Longzhong, the company expanded its petrochemical field by deepening its industry experience in the field of steel information. We believe that there are many types of commodities in the petrochemical sector, and there is a huge space for data and information services. The expansion to petrochemicals is just the beginning, and it is expected to continue expanding to nonferrous metals and other major categories in the future. In addition, the global competitiveness of the company's data information continues to increase, and the proportion of overseas revenue is expected to continue to increase in the context of rising pricing power.

Investment Advice

We believe that the company is the leader of steel e-commerce and big commodity data, and it is a stock of “unicorns” in which the A shares are scarce. We estimate that the net profit of the parent company will be 1.77/2.66/4.39 billion yuan from 2018 to 2020. We will not consider the effect of allotment and maintain our target price of 80 yuan per share, which corresponds to 72 times PE in 18 years. We maintain our “buy” rating.

Risk Warning: Trading volume in the steel market is cold; expansion of data information business is less than expected

Shanghai Steel Alliance important data list
Shanghai Steel Union Fundamental Data
  • Total share capital of 159 million shares
  • 151 million shares outstanding
  • Earnings per share 0.30 yuan
  • Undistributed profit per share -0.50 yuan
  • Net assets per share 5.18 yuan
  • Return on equity 9.13%
  • Net profit 48.18 million
  • Net profit growth rate 117.95%
Shanghai Steel Investment Rating
Overall rating within one month
Overall rating in March
Statistical period Buy Increase holdings neutral Reduction Sell total
Within one month520007
Within three months13300016
Within six months194000twenty three
Within a yeartwenty two800030
Shanghai Steel Union Profit Forecast
2016A 2017E 2018E 2019E
Earnings per share (yuan) 0.14 0.30 0.95 1.53
Net profit (100 million yuan) 0.22 0.48 1.50 2.44
name Quote change Research report number Institutional investment rating (nearly six months)
Buy Increase holdings neutral Reduction Sell
Deep Technology 10.06% 1 1 0 0 0 0
Creative information 10.01% 5 1 4 0 0 0
Chinese Academy of Sciences 10.00% 18 9 9 0 0 0
Runxin Technology 10.00% 0 0 0 0 0 0
Netac Intelligence 10.00% 1 1 0 0 0 0
Zhaori Technology 10.00% 0 0 0 0 0 0
Infront Micro 9.98% 0 0 0 0 0 0
Ziguang shares 8.63% 9 5 4 0 0 0
Century Riel 8.46% 0 0 0 0 0 0
the Great Wall 8.09% 1 1 0 0 0 0
Information 7.67% 0 0 0 0 0 0
East China Computer 7.57% 2 0 2 0 0 0
Jing Jiawei 7.51% 9 6 3 0 0 0
Mind Electronics 7.37% 1 1 0 0 0 0
Guangzhou Express 7.08% 5 4 1 0 0 0
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