Core Viewpoint - The company reported steady growth in 2024 with a revenue of 17.647 billion yuan and a net profit of 0.835 billion yuan, indicating a positive trend in operational resilience and quality improvement [1][2]. Group 1: Financial Performance - In 2024, the company achieved a revenue of 17.647 billion yuan, with a year-on-year growth of 9.69% in net profit, reaching 0.835 billion yuan [1]. - The net cash flow from operating activities was 1.504 billion yuan, reflecting a 9.95% increase year-on-year [1]. - For Q1 2025, the net profit attributable to shareholders was 0.232 billion yuan, showing a year-on-year growth of 7.78%, with a significant improvement in cash flow from operating activities, up by 41.4% [1]. Group 2: Business Strategy and Market Position - The company experienced a revenue decline in 2024 due to the absence of project settlement and industry cycle benefits from 2023, alongside a proactive optimization of business structure [2]. - The company plans to enhance its accounts receivable management and maintain a steady development trajectory by reducing the proportion of accounts receivable [2]. - The company is focusing on green low-carbon transformation and international development, achieving significant results in overseas market expansion, particularly in the "Belt and Road" initiative [2]. Group 3: Shareholder Returns - The company has emphasized shareholder returns, with a cumulative dividend payout of 2.258 billion yuan since its listing [3]. - For the 2024 fiscal year, the company plans to distribute a cash dividend of 2.99 yuan per 10 shares, totaling 0.429 billion yuan, which represents 51.36% of the distributable profit [3].

Investment Rating - The industry rating is "Recommended" [4] Core Views - The new housing market is showing signs of recovery, with a notable increase in new home transactions in major cities, indicating a potential boost in demand for construction materials [2][20] - The cement market is experiencing a slight price decline, but demand is expected to improve as weather conditions stabilize and construction activities pick up [3][23] - The report emphasizes the importance of domestic consumption and infrastructure investment, particularly in light of the "equal tariff" environment, which is expected to strengthen domestic demand [7][9] Summary by Sections Housing Market - In the 18th week of the year, new home transaction area in 30 major cities reached 165.19 million square meters, up 21% year-on-year and 6.19% month-on-month [2][20] - The total transaction area for new homes in these cities is 29.32 million square meters, showing no year-on-year change [2][20] - Second-hand home transactions in 15 monitored cities increased by 56% year-on-year but saw a significant month-on-month decline [21] Cement Market - The national average cement price is 390.83 yuan per ton, down 0.8% from the previous week, with price increases mainly in Liaoning and Jilin [3][23] - The cement market is expected to stabilize as demand improves and companies engage in peak-shifting production practices [23] Investment Recommendations - Recommended companies include: - **Oriental Yuhong**, **Weixing New Materials**, and **Tubaobao** for their strong operational resilience and high dividends [7] - **China Construction** and **China Communications Construction** as beneficiaries of increased infrastructure investment [7] - **Jinchengxin** for its strong performance in copper resource development [7] - **Heilongjiang Hongda** and **Xuefeng Technology** in the civil explosives sector due to high demand [7] Industry Trends - The report highlights the ongoing trend of domestic substitution in various sectors, particularly in ship coatings and industrial coatings, with companies like **Maijia Xincai** and **Songjing Coatings** positioned to benefit [7] - The "Belt and Road" initiative is expected to gain momentum, benefiting international engineering companies such as **China Construction** and **China Metallurgical** [7]

Investment Rating - The report maintains a "Positive" investment rating for the construction and engineering sector [12]. Core Viewpoints - The Central Political Bureau meeting on April 25 emphasized the need for proactive macroeconomic policies to stabilize growth and address risks in key areas, signaling positive stability for the real estate chain [2][9]. - The meeting highlighted the importance of high-quality development to respond to external uncertainties, particularly in the context of international trade tensions, such as the escalating US-China tariff situation [8][9]. - Infrastructure investment is expected to receive policy support as a key driver for economic growth, with a focus on enhancing funding and implementing new policies [10][11]. Summary by Sections Macroeconomic Policies - The report outlines the need for consistent policy orientation, utilizing more proactive fiscal policies and moderately loose monetary policies, including the issuance of special bonds and maintaining liquidity to support the real economy [9][10]. Real Estate Market - The report indicates that real estate development investment in March 2025 was CNY 0.9 trillion, a decrease of 10.0% year-on-year, with sales and new construction areas also showing declines [62][63]. Infrastructure Investment - In March 2025, narrow infrastructure investment reached CNY 1.9 trillion, up 5.9% year-on-year, while broad infrastructure investment was CNY 2.6 trillion, reflecting a 10.7% increase [54][55]. Sector Performance - The construction sector is advised to focus on the dual themes of stabilizing growth and the "Belt and Road" initiative, with recommendations for companies with high overseas exposure to benefit from increasing international orders [11][12].

Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 7.64 CNY [4]. Core Views - The company reported a significant improvement in gross margin and operating cash flow for 2024, despite a decline in revenue due to a high base in 2023 and challenges in the domestic metallurgy industry [2][3]. - The company has a strong order backlog, with total contracts signed amounting to 196.7 billion CNY, indicating potential for future revenue growth, particularly from overseas projects [2][9]. Revenue and Profitability - In 2024, the company achieved revenue of 17.647 billion CNY, a year-on-year decrease of 33.10%, while net profit attributable to shareholders was 835 million CNY, an increase of 9.69% [2][10]. - The gross margin for 2024 was reported at 14.50%, up by 5.71 percentage points, with both domestic and overseas operations showing significant improvements [3][9]. Cash Flow and Financial Health - The operating cash flow improved to a net inflow of 1.504 billion CNY in 2024, reflecting a year-on-year increase of 9.95% [3][11]. - The company maintained a high dividend payout ratio, distributing 4.29 billion CNY in dividends, which is 51.36% of the net profit [2][10]. Future Projections - Revenue projections for 2025-2027 are 19.189 billion CNY, 20.544 billion CNY, and 21.934 billion CNY, respectively, with expected year-on-year growth rates of 8.7%, 7.1%, and 6.8% [9][10]. - Net profit forecasts for the same period are 914 million CNY, 995 million CNY, and 1.076 billion CNY, with growth rates of 9.4%, 8.9%, and 8.2% [9][10].

Core Viewpoint - The company reported a steady growth in net profit for 2024, with a significant increase in new domestic project contracts in Q1 2025, despite a decline in overall revenue [1][2]. Financial Performance - In 2024, the company achieved an operating revenue of 17.647 billion, a year-on-year decrease of 33.1%, while the net profit attributable to shareholders was 835 million, an increase of 9.69%. The net profit after deducting non-recurring items was 747 million, up 19.01% [1]. - For Q1 2025, the company reported an operating revenue of 3.519 billion, a decrease of 28.21%, and a net profit of 232 million, an increase of 7.78%. The net profit after deducting non-recurring items was 231 million, up 9.25% [1]. - The gross profit margin for 2024 was 14.5%, an increase of 5.71 percentage points, while the net profit margin was 4.95%, up 1.9 percentage points. In Q1 2025, the gross profit margin was 13.75%, an increase of 3.16 percentage points, and the net profit margin was 6.82%, up 2.26 percentage points [2]. Contracting and Project Development - In 2024, the company signed new engineering project contracts worth 19.670 billion, a year-on-year increase of 2.12%, with foreign project contracts amounting to 16.268 billion, up 54.17% [1]. - In Q1 2025, the new contract amount was 3.979 billion, a decrease of 33.87%, with domestic project contracts amounting to 2.067 billion, a significant increase of 169.14% [1]. Market Expansion and Digitalization - The company has steadily expanded its overseas market presence, successfully signing several key projects in Algeria and Egypt in 2024, including a cold-rolled joint unit and a steel plant project [3]. - The company has made significant advancements in digitalization, completing various digital design projects and achieving full coverage of major process segments with mathematical modeling [3]. Investment Outlook - The company is expected to achieve net profits attributable to shareholders of 875 million, 924 million, and 986 million for 2025-2027, representing year-on-year growth rates of 4.75%, 5.59%, and 6.77%, respectively. The corresponding P/E ratios are projected to be 10.38, 9.83, and 9.21 [3].

Core Viewpoint - The company reported a significant decline in revenue for 2024, but managed to achieve a growth in net profit through effective cost control and business optimization [1][4]. Revenue Performance - The total revenue for 2024 was 17.647 billion yuan, a decrease of 33.10% compared to 26.377 billion yuan in 2023 [4]. - The gross profit reached 2.558 billion yuan, reflecting a year-on-year increase of 10.30% [4]. - The company's net profit attributable to shareholders was 835 million yuan, an increase of 9.69% year-on-year [1][4]. - The net profit excluding non-recurring items was 747 million yuan, up 19.01%, indicating stable growth in core business [4]. International Expansion - The company achieved significant breakthroughs in overseas markets, with new contract amounts reaching 19.670 billion yuan [5]. - Major projects include the Algeria Tosyali 1780mm pickling cold-rolled unit and the Egypt New Peak Steel 2 million tons hot-rolled coil project [5]. Green and Low-Carbon Technology - The company invested 375 million yuan in R&D, filing 225 patents and receiving approval for 73, including 24 invention patents [6]. - The hydrogen metallurgy project in Zhanjiang Steel has achieved stable operation, exceeding design indicators [6]. - The Baigang 2500m³ HyCROF project was recognized as a national "green low-carbon advanced technology demonstration project" and won the Steelie Award for low-carbon production excellence [6]. Shareholder Returns - The company proposed a cash dividend of 2.99 yuan per 10 shares, totaling 429 million yuan, which accounts for 51.36% of the net profit attributable to shareholders [6]. - The company has distributed dividends 13 times since its listing, totaling over 3 billion yuan [6]. Cash Flow Challenges - The net operating cash flow for 2024 was -1.635 billion yuan, an increase of 41.4% year-on-year, indicating ongoing cash flow pressure [7]. - The negative cash flow suggests challenges in project execution and fund recovery, particularly in overseas projects with longer payment cycles [7].

Group 1: Financial Performance - In 2024, the company achieved an operating revenue of 17.647 billion yuan, a total profit of 1.125 billion yuan, and a net profit of 874 million yuan, with a net cash flow from operating activities of 1.504 billion yuan and a debt-to-asset ratio of 68.49% [4] - In Q1 2025, the company reported an operating revenue of 3.519 billion yuan and a net profit attributable to shareholders of 232 million yuan [4] Group 2: Project Profitability - The overall project gross profit margin for 2024 was 13.61%, an increase of 6.06% year-on-year, with domestic projects at 15.26% and overseas projects at 13.67% [5] - The company aims to maintain a stable gross profit margin in 2025 by enhancing cost control and project management [5] Group 3: Market Conditions - The steel industry is experiencing a "reduction and quality improvement" phase, with improving enterprise profitability and decreasing operating costs [7] - The company plans to leverage its core technical advantages to capitalize on opportunities in domestic steel industry consolidation and low-carbon technology [7] Group 4: International Business Outlook - The international steel industry is showing steady growth, despite uncertainties in the global landscape, and the company is focused on expanding into emerging markets [6] - The U.S.-China trade war does not directly impact the company's business, but it poses systemic challenges to the global economy [8] Group 5: Technological Innovation - The company emphasizes technological innovation, with significant advancements in low-carbon metallurgy and digital design applications [9][10] - A hydrogen-based vertical furnace project was successfully completed, demonstrating the company's commitment to green technology [9] Group 6: Financial Management - The company has improved cash flow management, achieving a net cash flow of 1.504 billion yuan in 2024, a 9.95% increase from the previous year [11] - Management is proactively addressing accounts receivable to mitigate impairment risks in 2025 [11] Group 7: Corporate Governance - The company maintains a stable strategic direction focused on internationalization, green technology, and digitalization, unaffected by personnel changes [11] - The restructuring of the parent company, China Steel Group, has not altered the actual control of the company [12]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a total operating revenue of 17.647 billion yuan for 2024, a year-on-year decrease of 33.1%. However, the net profit attributable to the parent company was 0.835 billion yuan, an increase of 9.69% year-on-year [2][8]. - The company is expected to benefit from overseas market demand, with a significant increase in overseas orders, which rose by 54.2% year-on-year to 16.268 billion yuan in 2024 [8]. - The company’s gross profit margin improved significantly, with a gross margin of 14.50% in 2024, up 5.71 percentage points year-on-year [8]. Summary by Sections Financial Performance - In 2024, the company achieved total operating revenue of 17.647 billion yuan, a decrease of 33.1% year-on-year. The net profit attributable to the parent company was 0.835 billion yuan, an increase of 9.69% year-on-year, while the net profit after deducting non-recurring gains and losses was 0.747 billion yuan, up 19.01% year-on-year [2][8]. - For Q1 2025, the company reported total operating revenue of 3.519 billion yuan, a decrease of 28.21% year-on-year, with a net profit of 0.232 billion yuan, an increase of 7.78% year-on-year [2][8]. Operational Insights - The company’s gross profit margin showed significant improvement, with a comprehensive gross margin of 14.50% in 2024, up 5.71 percentage points year-on-year. The gross margin for Q1 2025 was 13.75%, an increase of 3.15 percentage points year-on-year [8]. - The company’s cash flow from operating activities showed a net inflow of 1.504 billion yuan in 2024, an increase of 0.136 billion yuan year-on-year, with a cash collection ratio of 97.57%, up 18.55 percentage points year-on-year [8]. Market Outlook - The company signed new orders totaling 19.67 billion yuan in 2024, a year-on-year increase of 2.1%. The domestic orders decreased by 60.9% to 3.402 billion yuan, while overseas orders increased significantly, providing strong support for the company [8]. - Looking ahead to 2025, the company is expected to maintain high growth in performance, supported by overseas market demand, with a projected net profit of 0.9 billion yuan and a dividend payout ratio of 50%, corresponding to a dividend yield of over 5% [8].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 8.57 RMB [8][9] Core Insights - The company reported a significant improvement in gross margin and cash flow, with a gross margin of 14.5% for 2024, up 5.7 percentage points year-on-year [2] - Despite a decline in revenue of 33.1% year-on-year to 17.6 billion RMB in 2024, the net profit attributable to the parent company increased by 9.7% to 835.2 million RMB [1][5] - The company has seen a notable increase in overseas orders, with new contracts signed reaching 19.7 billion RMB, a 2.1% increase year-on-year, and overseas orders accounting for 89% of total new contracts [2] Revenue and Profitability - The company experienced a revenue decline in Q4 2024 and Q1 2025, with revenues of 50.4 billion RMB and 35.2 billion RMB respectively, down 45.3% and 28.2% year-on-year [1] - The net profit margin improved to 4.73% in 2024, up 1.85 percentage points year-on-year, despite an increase in the expense ratio to 6.7% [3] Cash Flow and Financial Health - Operating cash flow significantly improved, with a net cash inflow of 1.5 billion RMB in 2024, and a cash flow ratio of 97.6% for receipts and 103.1% for payments [4] - As of Q1 2025, the company's debt-to-asset ratio decreased to 66.9%, down 2.9 percentage points year-on-year, indicating improved financial stability [4] Earnings Forecast and Valuation - The forecast for net profit attributable to the parent company is adjusted to 878.4 million RMB for 2025, reflecting a decrease of 9.7% from previous estimates [5] - The company is valued at a price-to-earnings (P/E) ratio of 14 times for 2025, aligning with the industry average [5][13]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6][17]. Core Views - The company achieved a revenue of 17.65 billion in 2024, a decrease of 33.1% year-on-year, while the net profit attributable to the parent company increased by 9.7% to 0.835 billion [1][5]. - The gross profit margin improved significantly, contributing to a notable increase in profitability despite revenue pressure [1][2]. - The company plans to distribute a cash dividend of 0.43 billion in 2024, with a dividend payout ratio of 51% and a dividend yield of 4.72%, enhancing investment returns [1]. Financial Performance - In Q1 2025, the company reported a revenue of 3.52 billion, down 28.21% year-on-year, but the net profit attributable to the parent company rose by 7.78% to 0.232 billion [1]. - The gross margin for the company in Q1 2025 was 13.7%, an increase of 3.15 percentage points year-on-year, indicating continuous improvement in profitability [2]. - The company’s net profit margin for 2024 was 4.95%, up 1.91 percentage points year-on-year, with a net cash flow from operations of 1.5 billion, reflecting strong cash flow performance [4]. Order and International Expansion - The company signed new contracts worth 19.67 billion in 2024, a year-on-year increase of 2.12%, with significant growth in overseas projects [3]. - The company has made substantial progress in international projects, particularly in Algeria, with the successful launch of major steel production facilities [3]. Cost Management - The company’s expense ratio for 2024 was 6.71%, an increase of 2.7 percentage points year-on-year, indicating challenges in effectively managing costs [4]. - Despite the increase in expense ratios, the overall profitability metrics improved due to enhanced gross margins [2][4].