On the evening of August 22, Daye Special Steel issued an announcement that the company recently received approval from the China Securities Regulatory Commission to approve Daye Special Steel to issue shares to CITIC Pacific Special Steel Investment and other matters to purchase assets. CITIC Group's special steel sector, namely CITIC Pacific Special Steel Group, will thus achieve an overall listing and enter the countdown to land on A-shares.

Daye Special Steel achieved revenue of 6.386 billion yuan in the first half of 2019

According to the announcement, the restructuring of Daye Special Steel intends to issue shares to purchase 86.50% of the equity of Xingcheng Special Steel (the target company) held by Taifu Investment and others, the transaction price is 23.179 billion yuan, and the issue price of the assets purchased by this issuance of shares is 9.20 yuan per share (after dividends and ex-rights).

It is reported that CITIC Pacific Special Steel Group is a special steel sector under CITIC Group, and its main assets are concentrated in Daye Special Steel and Xingcheng Special Steel. Through this restructuring, CITIC Pacific Special Steel Group will achieve the listing as a whole.

After the successful transaction, the special steel production capacity of the listed company will reach 13 million tons, becoming the world's largest and most complete professional special steel production enterprise, products are used in automobiles, energy, railways, engineering machinery, marine engineering, high-rise buildings and other industries, simply affected by the decline in demand in a downstream industry.

Industry insiders pointed out that the products of CITIC Group's special steel plate are positioned in the high-end, with stable long-term strategic cooperation customers, and these deep customer accumulations are at least after the first five years or even longer cycle certification to establish cooperative relations, and the technical barriers are high, so as to be relatively stable.

Since the beginning of the year, the price of raw materials such as iron ore and scrap steel has risen, and the international market situation is complicated, but Daye Special Steel's profit in the first half of the year still rose against the trend year-on-year, and the anti-cyclical nature of special steel was highlighted again.

The special steel plate set off a renaming boom and led the industry into the "new material era"

"Securities Daily" reporter learned from domestic investment institutions that because of the anti-cyclical nature of special steel materials, can bring investors a more stable return, in fact, the variety has long been concerned by relevant investors, but due to the A-share special steel sector, there has not been a landmark listed company before, so the market heat is limited, and CITIC Special Steel landed in the capital market, is expected to fill the gap of the A-share special steel segment leader, and cause market investment pursuit.

According to the data, Daye Special Steel is the first batch of hidden champion demonstration enterprises in Hubei Province's pillar industry segments, and the company's special steel products are used in key components in China's lunar exploration project, Tianyan FAST, large aircraft, Zhuhai-Hong Kong-Macao Bridge, high-speed rail, deep-sea oil wells and other "big country heavy equipment" and "super project".

In the first half of 2019, Daye Special Steel has a number of patents authorized, including 5 invention patents. The target company, Xingcheng Special Steel, has the only professional special steel research institute in China. According to the restructuring draft, Xingcheng Special Steel and its subsidiaries have a total of 637 domestic patents, including 115 invention patents and 1 overseas patent.

As the world's largest special steel leader, the listing of CITIC Group's special steel sector as a whole may drive the special steel industry to accelerate into the "new material era".