The strongest voice! Steel industry mergers and reorganization will be the trend!
With the recent acceleration of the integration of central enterprises, mergers and acquisitions of steel companies is also expected to heat up. However, the industry believes that the current profitability of steel companies to improve than-expected, so the optimal window of industrial restructuring may have been missed. But some people think that you can not profit to improve this one reason to judge the best window to integrate the steel industry missed, so, how do you think?
Steel restructuring is expected to heat up
Recent state-owned enterprises continue to reform. August 16 China Unicom mixed reform program surfaced, including Tencent, Baidu, Jingdong, Alibaba and other 14 agencies involved in Unicom mixed transformation;
August 21 SASAC news, after the approval of the State Council, China Light Industry Group Corporation, China Craft (Group) Company as a whole merged into China Poly Group, a wholly owned subsidiary;
August 28, the SASAC released news that China Guodian Corporation and Shenhua Group Co., Ltd. officially announced the restructuring; last week, China Building Materials and Sinoma Group's listed companies have suspended a large area, the two will also be implemented restructuring.
The basic interval of about 1 week time, the central enterprises have new news release, such a rhythm of market funds restlessness, many investors will focus on the steel plate body. Reporters noted that the recent policy level frequently released information to speed up the merger and reorganization of the steel industry. At the media briefing on the reorganization and integration of state-owned enterprises under SASAC, Bai Yingzi, director of the Reform Bureau of SASAC, said that it is necessary to steadily promote the reorganization of enterprises in such fields as equipment manufacturing, electricity, steel, shipping, building materials and tourism, pool resources and reduce disorderly competition. Quality management. Development and Reform Commission website also wrote that the steel industry, one of the key tasks of the next phase is to vigorously promote the merger and reorganization of enterprises.
The best time has been missed?
However, steel analysts yesterday told reporters that the current steel industry policy is still the subject of production capacity, and to the current productivity is one of the most effective means of environmental restrictions on production. The unprecedented implementation of the current round of environmental protection policies coupled with unprecedented inspections of compressed production capacity can be expected to achieve unprecedented productivity gains. This objectively reduces the importance of the merger and reorganization policy in the present. She bluntly said that China's industrial restructuring is easier to push forward in a situation where the industry is generally losing money. When the profitability of the industry improves, the resistance will be heavy. The reason is that steelmakers are reluctant to be merged, and they are more likely to accept the merger option only if unsustainable. Benefiting from the supply-side structural reforms, the profitability of steelmakers improved more than expected, so the optimal window period for industrial restructuring may have been missed. Only wait for the next tide of industrial management to come, will usher in the climax of the steel industry mergers and acquisitions.
However, some analysts pointed out that the speed and intensity of the consolidation of the central SOEs have far exceeded expectations and can not be missed in judging the optimal window period for the steel industry to consolidate. "Cyclical stocks in this way, do not want to move a good performance, poor performance and hope that the administrative intervention, this is not normal."
Wei Wei Steel analyst believes that mergers and acquisitions will be the trend.
1, mergers and acquisitions is a big project of the steel industry, the long-term trend must form a strong and strong industry concentration can be easier access to the right to speak.
2, on the best window is not to say that under the state of loss is considered the best, like now to go to production capacity, eliminate backwardness is the point.
3, the restructuring of steel restructuring is concerned about: poor profitability of mergers and poor mergers, mergers and acquisitions of state-owned enterprises, enterprises Baotuan need to be seriously considered and treated. For example: Baowu Steel's merger. Baosteel and Wuhan Iron and Steel have similar structures and layouts as well as some complementarities. Although Wuhan Iron and Steel Co., Ltd. possesses a lot of high-quality capital and advanced technologies despite operating difficulties, the merger and reorganization wave of the steel industry will start under the guidance of the central enterprises. If Mergers and acquisitions continue, there will be more state-owned steel companies will join the merger and reorganization ranks.
