A steel structure is the structure made up of steel. It is one of the major structures in construction. It consists of steel girder, steel column and steel truss made from structural steel and steel plate.
In 2016, the production volume of crude steel in China reached 808.37 million tons, ranking the first in the world. The production volume of steel structure was over 50 million tons. CRI estimates that by the end of 2016, there had been 3,000 steel structure manufacturers and over 10,000 construction companies in China. They have undertaken a large number of steel structure construction projects. However, in terms of the proportion of the production volume of steel structure in crude steel, China still lags behind. Steel structure accounts for less than 10% of the production volume of crude steel in China, while in developed countries, the proportion is over 25%. Therefore, China’s steel structure market has huge room to grow.
In recent years, both production volume and consumption of steel structure have been growing rapidly. Most steel structures are used in ultra high-rise buildings, industrial plants, sports venues and other public facilities. They are used in many landmarks, such as the Bird’s Nest, the Water Cube, the new CCTV headquarters, Shanghai Jin Mao Tower, Shanghai International Finance Center and Shenzhen Di Wang Tower. These projects consume a large quantity of steel. The Bird’s Nest alone used 110,000 tons of steel.
The construction industry is a labor-intensive industry. In recent years, China’s labor costs have been quickly rising. Wider use of steel structure will effectively decrease labor costs in the construction industry. One of the advantages of steel structure is its high fabrication rate. More than 70% of construction is completed by sending components of steel structures to construction sites and fabricating them with fastener and bolt. This shortens the project duration and saves labor costs. Compared with ferroconcrete structures, time taken to build a 30-50-floor steel structure can be shortened by 8-12 months and gross costs can be reduced by 10%.
At the same time, with stricter environmental protection policies, traditional concrete buildings are being replaced by fabricated buildings. In Plan for the Adjustment and Upgrading of the Steel Industry (2016-2020), Ministry of Industry and Information Technology put forward a guiding target for the proportion of steel structures in total construction steel. The proportion was raised from 10% in 2016 to over 25% in 2020. It calls for acceleration in the promotion of steel structures. Steel consumption of steel structures should increase from 50 million ton/year to over 100 million ton/year.
CRI analysis shows that China’s steel structures are mainly used in industrial plants and infrastructure, which will keep growing with continued industrialization and urbanization. The Chinese government’s industry policies support the development of the steel structure industry, which has been seen with many local governments.
According to CRI, the structure of steel consumption is changing. Although steel structure residential properties are expanding fast, it is not easy to change conventional production and living habits. Currently, steel structure residential properties account for less than 1% of the entire construction industry. In comparison, in developed countries, steel structures make up 20%-50% of properties and 30%-40% of bridges. Since 2012, finished properties are over 3 billion m2 every year. If 20% of them use steel structures, demand for steel would be increased by 30 million tons a year, driving the development of the steel industry.
In this report, CRI analyzes 10 steel structure companies listed in A-share market in China.
The report is composed of two parts: the first part is enterprise profiles and the second part is the operation status of these enterprises in the recent decade (presently 2006 to 2016, we will update it to the latest as time goes by).
The operation status is demonstrated from the following perspectives: (1)financial indexes, such as earnings per share, book value per share (BPS), sales per share, net cash flow per share, return on net worth and debt to asset ratio; (2) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (3) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (4) indexes on the balance sheet, such as liquid asset, fixed asset, current liability, non-current liability, capital reserve and shareholders’ equity.
The report provides readers with a quick guide to the profiles and financials of Chinese cement manufacturers being listed in the recent 10 years.
(1) Financial Indexes
– Earnings per Share
– Book Value per Share (BPS)
– Sales per Share (SPS)
– Net Cash Flow per Share from Operations
– Net Cash Flow per Share (CNY)
– Return on Net Worth
– Net Profit Margin on Total Assets
– Return on Invested Capital (ROIC) (%)
– Gross Profit Margin on Sales (%)
– Net Profit Margin on Sales (%)
– EBIT Margin (%)
– EBITDA Margin (%)
– Debt to Asset Ratio (%)
– Total Asset Turnover (times)
– Cash/Operating Income Received from Sales of Goods or Services
– YOY Growth Rate of Operating Revenue (%)
– YOY Growth Rate of Operating Profit (%)
– YOY Growth Rate of Net Profit Attributable to Shareholders of Parent Company (%)
(2) Summary of Income Statement
– Gross Revenue (CNY, million)
– Total Operating Costs (CNY, million)
– Revenue (CNY, million)
– Operating Profit (CNY, million)
– Total Profit (CNY, million)
– Net Profit (CNY, million)
– Net Profit Attributable to Shareholders of Parent Company (CNY, million)
– Non-recurring Items (CNY, million)
– Net Profit Deducting Non-recurring Items (CNY, million)
– R&D Costs (CNY, million)
– Earnings Before Interest and Tax (EBIT) (Based on iFind) (CNY, million)
– Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Based on iFind) (CNY, million)
(3) Summary of Balance Sheet
– Liquid Asset (CNY, million)
– Fixed Asset (CNY, million)
– Long-term Equity Investment
– Total Assets (CNY, million)
– Liquid Liability (CNY, million)
– Non-current Liability (CNY, million)
– Total Liability (CNY, million)
– Capital Reserve (CNY, million)
– Surplus Reserve (CNY, million)
– Undistributed Profit (CNY, million)
– Shareholders’ Equity (CNY, million)
– Equity Attributable to Shareholders of Parent Company (CNY, million)
(4) Summary of Cash Flow Statement
– Cash Received from Sales of Goods and Services (CNY, million)
– Cash Flow from Operations (CNY, million)
– Cash Paid to Purchase Fixed Assets, Intangible Assets and Other Long-term Assets (CNY, million)
– Cash Paid for Investments (CNY, million)
– Cash Flow from Investments (CNY, million)
– Cash Received from Investors (CNY, million)
– Cash Received from Borrowings (CNY, million)
– Cash Flow from Financing (CNY, million)
– Net Increase of Cash and Cash Equivalents (CNY, million)
– Cash and Cash Equivalents, End of Period (CNY, million)
– Depreciation and Amortization (CNY, million)
Companies in the report:
1 Qingdao East Steel Tower Stock Co., Ltd. (002545.SZ)
2 JiangSu Yabaite Technology Co., Ltd. (002323.SZ)
3 Hangxiao Steel Structure Co., Ltd. (600477.SH)
4 Jiangsu Zhongtai Bridge Steel Structure Co., Ltd. (002659.SZ)
5 Anhui Honglu Steel Construction (Group) Co., Ltd. (002541.SZ)
6 Changjiang & Jinggong Steel Building (Group) Co., Ltd. (600496.SH)
7 Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ)
8 Guangzheng Group Co., Ltd. (002524.SZ)
9 Anhui Fuhuang Steel Structure Co., Ltd. (002743.SZ)
10 Haibo Heavy Engineering Science and Technology Co., Ltd. (300517.SZ)