中钢国际：Q2业绩超预期，盈利能力大幅提升

Investment Rating - The report maintains a "Buy" rating for the company [3][16]. Core Views - The company's Q2 performance exceeded expectations, with significant improvements in profitability. For H1 2024, the company achieved revenue of 9.07 billion yuan, a year-on-year decline of 15.2%, while net profit attributable to shareholders reached 417 million yuan, a year-on-year increase of 21.7% [2][29]. - The report highlights that the recovery of overseas project execution and a reduction in impairment losses contributed to the strong performance in Q2, where net profit was 202 million yuan, up 50% year-on-year [2][29]. - The company is expected to benefit from the ongoing urbanization and industrialization in emerging markets, which will drive demand for metallurgical engineering services. The restructuring with Baowu is anticipated to enhance the company's international operations and order growth [14][29]. Financial Performance Summary - For 2024E, the company is projected to achieve a net profit of 931 million yuan, with a year-on-year growth of 22%, and an EPS of 0.65 yuan per share [3][4]. - The financial metrics indicate a decline in revenue for 2024E to 22.77 billion yuan, a decrease of 13.7% compared to 2023A, but a recovery is expected in subsequent years with growth rates of 8.0% and 5.2% for 2025E and 2026E respectively [4][7]. - The report notes that the company's P/E ratio is projected to decrease from 9.9 in 2023A to 8.1 in 2024E, indicating a potentially attractive valuation [4][7]. Dividend and Profitability - The company has maintained a strong dividend policy, distributing at least 40% of its distributable profits in cash. In 2023, it paid out 382 million yuan in dividends, achieving a payout ratio of 50.1% [30]. - The current dividend yield is approximately 6.2%, which is considered attractive compared to other international engineering firms [30].