Behind the soaring share of Shagang: Big data conversion failed in 3 years, and the price-earnings ratio far exceeds its peer


Behind the soaring share of Shagang: Big data conversion failed in 3 years, and the price-earnings ratio far exceeds its peers
At midday on May 13, Shagang had been suddenly pulled up to its daily limit.As of closing at 3 pm, it has been staying in the ascending stop position, the daily newspaper 14.43 yuan / share, corresponding to a market value of 31.8 billion yuan.It is understood that this is the 11th time that Shagang has been rising and stopping since 2020.Wind data shows that since the beginning of 2020, the company’s merger has gradually increased by 131.62%, ranked first in all listed companies in the steel industry.Currently, Shagang’s P / E ratio and P / B ratio are 60.4, 6.3, far exceeding Baosteel’s 9 in the market value of the industry.8. 0.6.From a fundamental perspective, Shagang’s performance in 2019 and the first quarter of 2020 is not outstanding. This round of daily limit is mainly related to a major restructuring plan that accompanies it.At a high level, Shagang had been rumored to acquire a 100% stake in the affiliated company Suzhou Qingfeng Investment Management Co., Ltd. The core asset of the company is a 51% stake in the big data company Global Switch Holdings Limited (hereinafter referred to as “GS”).In addition, a share repurchase program launched by Shagang in April this year has also contributed to the recent gradual rise of Shagang.Allegedly announced on April 7, Shagang shares plan to repurchase part of the public shares in the secondary market through centralized bidding, the repurchase price does not exceed 14.79 yuan / share (including tax), the amount does not exceed 3.2.6 billion, the term is half a year.The highest repurchase price still exceeds the current maximum.5%.In 2016, there was no substantial progress in the field of planned big data after 3 years. Public information shows that Shagang is mainly engaged in ferrous metal smelting and special steel production. Behind it is Shagang, China’s largest private steel company.As of March this year, Shagang Group held 26 Shagang shares.64% of the shares are still the largest shareholder and real holding east.For Shagang and Shagang, 2016 was a turning point.In June of this year, the legal person and chairman of the Shagang Group was changed from Shen Wenrong, who is known as the “steel czar”, to Shen Bin. Shen Wenrong only retained the position of director.Shen Bin is Shen Wenrong’s eldest son.Also in this year, Shagang Group began to plan the transformation of the “big data” field, and Shagang Group also proposed the slogan of coordinating the development of a single special steel business into a “special steel + data center” dual main business.According to the specific operation plan, they chose to directly buy the foreign big data company GS.The specific operation process is divided into: Shagang Group first buys GS, Shagang shares then buy the participating subsidiaries from Shagang Group to complete the asset placement.Initially completed.In 2016, Suzhou Qingfeng Investment Management Co., Ltd. (abbreviation: “Suzhou Qingfeng”), a subsidiary of Shagang Group’s territories, bought a partial stake in GS51, and the transaction price was 23.£ 4.2 billion.In June 2018 and August 2019, Shagang Group purchased 24 through its controlling subsidiary Strategic IDC Limited and its wholly-owned subsidiary Tough Expert Limited respectively.99% and 24.01% equity (the transaction consideration is 1.8 billion pounds and 17 respectively.9.5 billion pounds).At this point, all the equity of GS was included in Shagang Group.However, there was trouble in the second step.It is understood that as early as September 19, 2016, the stock was suspended for the planning of major asset acquisitions, and the suspension was more than two years.During the period, Shagang had thrown out a restructuring plan on June 15, 2017. The plan stated that Shagang plans to acquire two data companies, Suzhou Qingfeng 100% and Deli, by issuing shares and cash transactions.Schindler’s 88% equity, with a total M & A amount of 258.0.8 billion yuan.For various reasons, until the stock resumed trading in December 2018, Shagang’s acquisition of the above two companies could not be completed.At this time, Shagang has thrown out a new reorganization plan, adjusting the acquisition of Suzhou Qingfeng and Deli Xunda to only one company of Suzhou Qingfeng.But until today, the acquisition of Suzhou Qingfeng by Shagang has still not made substantial progress.According to the announcement of Shagang Group, as of May 7 this year, the parties involved in the transaction are still actively promoting the work of this major asset reorganization.The gross profit margin of GS is 70% far higher than that of its peers. The reason is that Shagang shares and the underlying Shagang Group choose GS as the investment targetBased on the above calculations, Shagang Group spent a total of 59.5% before and after buying the entire share of GS3.7 billion pounds, converted at the current exchange rate, about 51.8 billion yuan.In the adjustment plan disclosed by Shagang in December 2018, the transaction price of Suzhou Qingfeng rose again, from 22.9 billion yuan to 237.8.3 billion yuan, an increase of 3.86%.On the one hand, GS has a long history of establishment and ranks top in the industry.According to public information, GS is the third largest data center operator in the world and the largest in Europe and Asia-Pacific.It was founded in 1998 and is headquartered in London. It has long been wholly-owned by the British billionaire richest man Ruben Brothers.GS currently owns and operates 10 data centers in 7 cities in Europe and Asia-Pacific, with a total leaseable area of over 300,000 square meters.Major customers include Microsoft, IBM, AT & T, Japan Telecom and other internationally renowned IT companies.According to the plan, GS also plans to build or expand data centers in Hong Kong, London, Amsterdam, Frankfurt, Singapore and other places. After completion, the total leaseable area will increase by about 180,000 square meters.On the other hand, the gross profit margin of GS is also very high.According to media reports, on March 10 this year, the management of Shagang and Suzhou Qingfeng disclosed at the investor exchange meeting of Tianfeng Securities that the overall gross profit margin of GS’s data center can reach 70%.It is understood that the gross profit margin of the US stock IDC leader EQIX is only 50%, and the gross profit margin of IDC companies such as A-share New Network and Wangsu Technology is only 20% -30%.In other words, the gross profit margin of GS far exceeds that of domestic and foreign counterparts.In this regard, Shagang ‘s management explained that on the one hand, since GS started early, it was connected to the data center in 1998. At that time, global operators did not expect this industry to develop so fast, so the cost of acquiring land was very low; on the other hand, in technologyIn the past, GS is constantly optimizing equipment and management experience, PUE is very low, PUE = 1 in Singapore.3 (total energy consumption of data center equipment / IT equipment energy consumption), significantly better than peers.A recent bond prospectus issued by Shagang Group shows that Shagang’s net interest rate is as high as 60%.As of the end of September 2019, GS ‘total assets were 65.2.9 billion pounds, with a net worth of 39.£ 6.5 billion. In the first three quarters of 2019, it realized operating income 3.3.1 billion pounds, net profit 2.1.8 billion pounds.The net interest rate is about 65.8%.Shagang Group’s debt ratio rose to 57%, and 8 billion yuan of debt has been issued this year for borrowing new and old loans, although the gross profit margin of GS far exceeds that of its peers.However, under the premise that assets are placed in listed companies and are still unresolved, the risks faced by investors in “chasing high” cannot be underestimated.Shagang’s 2019 annual report shows that during the reporting period, Shagang’s operating income reached 134.700 million yuan, down 8.41%; net profit attributable to mother 5.300 million yuan, a year-on-year decline of 55.07%.Affected by the epidemic and other factors, in the first quarter of this year, Shagang’s revenue and net profit continued to be separated by a period of time.39% and 1.99%.By comparing with other listed companies in the industry, Shagang’s current price-earnings ratio and price-to-book ratio are far more than similar companies.According to statistics of wind data, among the top ten companies in the market value of A-share listed steel companies, Shagang’s (static) market surplus was reset to 60.44 times, ranking first in the industry, far exceeding 11.55 times the industry median.Compared with the price-to-book ratio, its price-to-book ratio has reached 6.29 times, far exceeding the second place of CITIC Special Steel’s 3.04 times.According to the above prospectus, Shagang Group’s parent company Shagang Group’s debt ratio increased significantly last year.As of the end of 2018, the total assets of Shagang Group were 1,775.89 trillion, a total of 888.41 trillion, with an asset-liability ratio of 50.03%.In the first three quarters of 2019, Shagang Group’s total assets were 2219.38 trillion, total debt is 1273.6070 trillion, the asset-liability ratio rose to 57.39%.After entering 2020, Shagang Group has issued bonds intensively and has issued bonds 8 times so far. Among them, 4 are medium-term notes and 4 are short-term loans, raising a total of 8 billion yuan.The announcement shows that the main purpose of Shagang Group’s intensive bond issuance is to borrow old and pay back old.At present, there are 23 RMB bonds coexisting, with a stock size of 233.8 trillion, of which 85 trillion is due within one year and one year.In addition, Shagang Group still has one US dollar bond with a balance of US $ 200 million, which will expire in 2023.It is worth mentioning that on May 11th, Shagang Group announced that it plans to issue the “Fifth Medium-Term Notes for 2020”, which will be issued from May 11th to May 12th.On the evening of May 13, the Shanghai Clearing House announced that Shagang Group had decided to cancel the issuance of the medium-term note. As for why it was cancelled, the group re-disclosed.Reporter Peng Shuo Li Yunqi Editor Zhao Ze Xu Chao proofreading Xue Jingning