SHANDONG STEEL(SH:600022) Mei Ri Jing Ji Xin Wen·2025-10-09 10:32Core Viewpoint - Shandong Steel has shown signs of recovery in the first three quarters of 2025, successfully turning a loss of 1.45 billion yuan in the same period last year into a profit of approximately 140 million yuan this year, despite the steel industry being in a downward cycle [1][2]. Financial Performance - The company expects a total profit of around 632 million yuan for the first three quarters of 2025, an increase of approximately 2.196 billion yuan compared to the same period last year [2]. - The net profit attributable to shareholders is projected to be around 140 million yuan, an increase of about 1.591 billion yuan year-on-year [2]. - After excluding non-recurring gains and losses, the net profit attributable to shareholders is expected to be approximately 138 million yuan, an increase of about 1.613 billion yuan compared to the previous year [2]. - Earnings per share are expected to be around 0.0131 yuan, a significant improvement from -0.1361 yuan in the same period last year [2]. Cost Management and Efficiency - The company has achieved a reduction in steel production costs by over 60 yuan per ton through effective cost control measures [3][4]. - The gross profit margin increased to 6.02% in the first half of 2025, up 4.15 percentage points year-on-year, despite a revenue decline of 18.60% [2]. - The company has implemented a "cost accounting" strategy, focusing on value creation and efficiency improvement, which has led to a significant increase in the purchase and sales price difference, exceeding 200 yuan per ton compared to last year [3][5]. Strategic Initiatives - The successful turnaround is attributed to the "transformation for survival" strategy and the ongoing collaboration with China Baowu Steel [3]. - The company has emphasized the importance of precise management and dynamic cost control systems, which have allowed it to achieve profitability even in challenging market conditions [4].