Valin Steel(SZ:000932) Xin Lang Cai Jing·2025-08-19 08:35Core Viewpoint - Hualing Steel reported a mixed performance in its 2024 interim results, with a significant decline in revenue but an increase in net profit, indicating resilience in profitability despite challenging market conditions [1][2]. Financial Performance - In the first half of 2024, the company achieved revenue of 62.794 billion yuan, a year-on-year decrease of 17.02%, while net profit attributable to shareholders was 1.748 billion yuan, up 31% [1]. - For Q2 2025, the company reported a quarterly revenue of 32.863 billion yuan, down 15.52% year-on-year but up 8.71% quarter-on-quarter, with net profit attributable to shareholders at 1.186 billion yuan, reflecting a year-on-year increase of 26.22% and a quarter-on-quarter increase of 111.05% [1][2]. Profitability and Cost Management - The total profit, net profit, and net profit attributable to shareholders for the first half of 2025 were 2.984 billion yuan, 2.310 billion yuan, and 1.748 billion yuan, respectively, showing year-on-year growth of 23.29%, 17.29%, and 31.31% [2]. - The company’s financial expenses decreased significantly, with interest-bearing debt down from 32.8 billion yuan to 30.9 billion yuan, leading to a reduction in financial costs from 100 million yuan to -16.1 million yuan [2]. Product Development and Market Position - The company focused on product iteration and optimization, with key product sales accounting for 68.5% of total sales, an increase of 3.9 percentage points year-on-year [3]. - In the silicon steel sector, the company successfully developed 12 high-grade non-oriented silicon steels and 5 oriented silicon steels, achieving a market share of over 60% in oriented silicon steel base materials [3]. Shareholder Returns and Market Strategy - The company has paid cash dividends of 687 million yuan for 2024, with a projected cash dividend and buyback ratio of 44%-54% [4]. - As of June 30, 2025, the company repurchased 42.06 million shares for a total of 201 million yuan, with plans for further buybacks [4]. Future Outlook - The company is expected to benefit from production growth and enhanced profitability due to high-end product offerings, with projected net profits for 2025-2027 at 3.314 billion, 4.138 billion, and 4.510 billion yuan, respectively [5]. - The current market conditions and company strategies suggest a positive investment outlook, with a maintained "buy" rating [5].