Core Viewpoint - 中钢国际 is focusing on expanding its international market presence, particularly in the steel sector, while maintaining a strategic approach to risk management in a complex global environment [1][2]. Group 1: Company Overview - 中钢国际 specializes in engineering contracting, technology development, and industrial services, with a strong emphasis on energy conservation, environmental protection, and intelligent manufacturing [1]. - The company has extensive international execution experience and a comprehensive technical service capability across the entire process from mining to cold-rolled end products [1]. - 中钢国际 has established 15 overseas branches and operates in over 50 countries, with 90% of its overseas contracts originating from Belt and Road Initiative countries [1]. Group 2: Market Strategy - In 2024, 中钢国际 aims to capitalize on the growth of the overseas steel market by increasing its market share and achieving breakthroughs in mining, steel plants, cold rolling, and energy sectors [2]. - The company plans to maintain its international development strategy while focusing on risk management and expanding into new markets, particularly in the Middle East and Africa [2]. - 中钢国际 intends to strengthen partnerships with major clients such as Rio Tinto, Tosyali, ArcelorMittal, and Vale to secure key project contracts [2]. Group 3: Project Management and Payment - The company has developed an efficient organizational structure that allows for unified control from headquarters while managing country-specific differences [3]. - 中钢国际 emphasizes the importance of understanding and applying international standards for customized project design [3]. - The company ensures project payments are secured through prepayments from clients and structured payment terms, with approximately 90% of payments received upon project completion [3]. Group 4: Sustainability and Innovation - 中钢国际 is committed to enhancing its technological innovation capabilities, focusing on low-carbon metallurgy engineering technologies to support the green transformation of the steel industry [3]. - The company integrates ecological protection and community development into its overseas projects, aligning with global ESG standards [3].

Group 1: Industry Overview - The steel industry has entered a "reduction and quality improvement" phase, with weak supply-demand balance due to slowing infrastructure and manufacturing sectors [4] - The company aims to leverage its engineering technology advantages to support clients in achieving high-quality development [4] - The company will shift focus from quantity to quality in project acquisition, emphasizing project effectiveness for stable growth [4] Group 2: International Market Expansion - In 2024, the company saw significant growth in overseas contracts, capitalizing on the expanding overseas steel market [5] - The company plans to maintain its international development strategy while exploring new markets in the Middle East and Africa [5] - The company has established a robust overseas business management system to mitigate risks associated with local political and economic factors [8] Group 3: Financial Performance - In 2024, the company achieved a net cash flow from operating activities of CNY 1.504 billion, a 9.95% increase year-on-year [7] - The company reported a 33.10% decline in revenue for 2024, but net profit increased by 9.69% due to optimized business structure and improved project management [12][13] - The company's gross profit margin for engineering projects was 13.61%, with domestic and overseas margins at 15.26% and 13.67% respectively [13] Group 4: Technological Innovation and R&D - The company has made significant advancements in low-carbon metallurgy technology, focusing on high-efficiency processes and equipment [23][24] - The company’s R&D efforts have led to the successful implementation of various low-carbon projects, including the world's first hydrogen-based direct reduction iron production line [24] - The company plans to enhance its digitalization efforts to improve operational efficiency and support technological innovation [18] Group 5: Environmental and Social Responsibility - The company has contributed over CNY 12 million to rural revitalization efforts, enhancing local economic development [27] - The company is committed to supporting low-carbon initiatives and has established a comprehensive environmental management system [25][26] - The company aims to align its operations with national carbon reduction goals, contributing to the steel industry's green transformation [22][29]

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 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]