The success of the M&A project and the planned mass production of Indonesian nickel will increase the momentum of Huaxin's revenue growth this year

Huaxin was not affected by the increase in the New Year and the reduction in the number of working days. In January, the consolidated revenue was 15.163 billion yuan, an annual increase of 12.32%, which was better than expected. It not only created a new high in the past seven months, but also rewritten the second highest record in the same period. At the end of the month, the Italian CAS stainless steel plant and the Indonesian nickel pig iron plant, which were acquired and held 70% of the shares, received nickel metal revenue. Huaxin invested in the first quarter mass production of the Indonesian matte nickel plant, which means that Huaxin's revenue this year will challenge the record high in history.

Although the number of working days in January this year was reduced due to the long Spring Festival holiday, Huaxin’s sales and shipments of power cables, stainless steel and other products were stable in January, and the price of stainless steel has been raised every month since the fourth quarter of last year, pushing up revenue performance; Mainland China’s epidemic prevention After the lockdown is lifted, the market expects that the mainland’s economy will heat up this year, which will help Huaxin’s shipments. In addition, the international copper and nickel prices have both rebounded from the bottom, and the Italian CAS stainless steel plant’s revenue injection has contributed to Huaxin’s revenue in January. trend higher.

Huaxin said that although the consolidated revenue in January was the second highest in the same period on the book, second only to the 24.365 billion yuan in January 2018, the main reason was that there was a one-time recognition of sales revenue from the sales of residential and office buildings in Nanjing, China. If non-industry income is deducted, the industry's revenue in January this year is a new high for the same period.

In order to control the source of matte nickel for electric vehicle battery materials, Huaxin invested in two matte nickel factories in Indonesia Rising Sun and Indonesia Wistron last year. Among them, the Indonesian Rising Sun Matte Nickel Plant plans to mass-produce in the first quarter of this year. Controlling more than 20,000 tons of matte nickel will increase the growth momentum of Huaxin's revenue this year.

Foreign investors switched from buying to selling on Huaxin on the 6th, which encouraged Huaxin to rise by 0.5 yuan in early trading on the 6th and open at 54.7 yuan. Then selling pressure emerged.

The Italian CAS stainless steel plant, in which Huaxin holds 70% of the shares, had a revenue of 730 million euros in the first three quarters of last year, and 200 million to 250 million euros in each quarter. Since the fourth quarter of last year, Huaxin has increased the quotation of stainless steel for domestic and foreign sales for five consecutive months to reflect the rising cost of raw materials such as nickel, scrap stainless steel, and ferromolybdenum. A new high above the yuan.