CITIC Securities: Uncover the secret of Baotou Steel's soaring warrant

The warrant of Baotou Iron and Steel Co., Ltd. rose sharply on Thursday, with the maximum amplitude of 13% in the session, and the increase on the day was also more than 10%. The huge profit making effect attracted great attention from the market. Why does Baogang warrant suddenly have such crazy performance? Mainly because Baotou Steel If the overall listing is successfully achieved, the company's performance will be significantly improved, and the change in fundamentals provides an opportunity for Baotou Steel to strengthen its warrants.

At the same time, the concept of overall listing on the secondary market has broken out in an all-round way, and the list of overall listing concept stocks can be found everywhere. Once discovered by the market, it is easy to pull several price limits. And does the soaring of Baotou Steel's warrant on Thursday indicate that Baotou Steel's shares have received market attention? The answer is unknown. Also in the secondary market, Baotou Steel (600010) has started to make a large-scale upward attack, and the capital intervention is very obvious, which deserves special attention in the future market.

In the context of full circulation, the overall listing of the Group has become a general trend, especially for iron and steel enterprises, there will be more opportunities to strengthen and expand the overall integration of iron and steel production. For historical reasons, Baotou Iron and Steel Co., Ltd. has only part of steel making and part of steel rolling, assets, coke making, iron making, and other steel assets remain within the Group, The industrial chain has been in a state of division for a long time, which is not conducive to the overall planning and unified layout of production, and causes a large number of related transactions between the company and Baotou Steel Group. The company announced in November 2006 that it had acquired 6.975 billion yuan of assets of the group company by issuing 3.032 billion additional shares. In this way, Baotou Steel basically realized the overall listing. After the purchase, the profits of each production link of steel will be concentrated in the new company, and the output will surge from 8.5 million tons to 15 million tons. With the gradual exertion and release of synergies in production, management, R&D, sales and other aspects, the company's comprehensive costs will be reduced, thus improving the profitability of the new company.

After the successful overall listing of Baotou Iron and Steel Group, it will bring huge mineral resources to Baotou Iron and Steel Co., Ltd., and Baotou Iron and Steel Co., Ltd. will become a resource rich mining stock. distinctive Resource advantages It will form Baotou Steel's industrial advantage with steel and rare earth as the main industry. After the completion of the overall listing, in addition to the general trend of integrating its own steel industry chain, another big gain is the coveted mineral resources of Baotou Iron and Steel Group. In addition to establishing a resource advantage far higher than that of peers in the steel industry, Baotou Iron and Steel Co., Ltd. in the future is no less important than the current resource leader from the perspective of resource stocks.

According to the company's data, including Guotai Jun'an, Everbright Securities, Orient Securities and other securities companies and funds holding heavy positions, which fully shows the strong recognition of institutional investors to the company. On the secondary market, Baotou Steel (600010) has successfully broken through the pressure of the average line with the moderate amplification of trading volume. Large orders frequently appear in the session, which is very obvious. The future market is expected to continue to rise under the full exploitation of the overall listing concept by the market, which deserves special attention.

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