First release in Beijing
On Tuesday, the A-share market fell to a new high, but the warrant market was not active. From the perspective of market, only 9 and 16 of the 26 warrants rose and fell. We believe that the activity of warrant market will be mainly reflected in the continuous strength of warrant as the A-share market fluctuates. Where Hangang JTB1 , steel vanadium GFC1 and Baotou Steel JTB1 The strong performance of steel warrants represented by such warrants in yesterday's intraday trading has fully indicated that steel warrants are expected to reach a new high.
First, mergers and acquisitions enhance the value of the steel sector. As the basic industry of the national economy, the steel industry plays an important role in China's economic construction. However, the integration, reorganization and merger between iron and steel enterprises have gradually been put on the agenda due to the intermingled good and bad among iron and steel enterprises and the homogenization of product structure. The National Steel Industry Development Policy also points out that China's steel industry needs to adjust the industrial supply structure, improve industrial concentration and optimize industrial layout.
Based on the huge demand for steel brought about by China's rapid economic growth and the low concentration of the industry, foreign steel giants are eyeing the domestic steel industry, and have always wanted to participate in or control domestic steel enterprises through various channels. But Baosteel Group acquired Bayi Steel It is an important step for Baosteel to achieve rapid expansion of its scale on the premise of complying with the national industrial policy, and it also marks the beginning of the reorganization and merger of the domestic steel industry. We believe that the M&A value potential of listed steel companies will enhance the overall valuation range of the steel sector, thus stimulating the continuous strength of steel warrants.
Secondly, steel demand remains strong. With the increase of investment in bottleneck industries such as coal, electricity and oil transportation, the stock allocation of the national economy has been basically reasonable, and the potential growth rate of GDP is expected to remain around 10%. Under the background of the national policy of revitalizing the equipment manufacturing industry, machinery, shipbuilding, automobile and other industries will become important areas of China's future export growth, and will also drive the demand for steel; The real estate industry is still an important pillar of urbanization, which also supports the demand for steel. We expect that the growth rate of steel demand in 2007 will be the same as that of last year, and continue to maintain rapid growth. So as to support the steel plate to continue to strengthen on the fundamentals, stimulating the corresponding warrants to rise.
In addition, it is better to buy steel warrants than to buy steel stocks. With the in-depth development of the A-share market and the expectation of mergers and acquisitions in the steel industry, the continuous rise of the entire steel sector has been reflected in the market. yesterday, Fushun Special Steel 、 Handan Steel 、 Shougang and Laigang And other steel stocks were in the trading limit, which led to Jinan Iron&Steel 、 Wuhan Iron & Steel and GISE Such as the strength of individual steel stocks. At the same time, the steel warrants represented by Handan Steel JTB1, Steel Vanadium GFC1 and Baotou Steel JTB1 in the warrant market also rose sharply in the intraday yesterday. It has formed the linkage effect of positive shares and warrants. In fact, through the panel, we clearly found that such steel warrants as Handan Iron and Steel JTB1 and Baotou Iron and Steel JTB1 have been in the rising channel since December 26, 2006, and have repeatedly reached new highs, with cumulative increases of 67% and 71%. Meanwhile, Handan Iron&Steel and Baotou Steel The cumulative increase of its positive shares was 38.97% and 53.45% respectively.
We believe that steel vanadium GFC1 (031002) is expected to become the leader of steel warrants. Seen from the trend, the stock continued to rise in high volume, which is expected to drive the accelerated rise of vanadium steel GFC1.
