BSGCO(000959) 国泰君安·2024-08-16 09:08Investment Rating - The report maintains a "Buy" rating for Shougang Co., Ltd. (stock code: 000959) with a target price of 3.21 CNY, down from the previous target of 4.95 CNY [3][8]. Core Views - The company's debt pressure is gradually easing, which is expected to lead to a continuous decline in financial costs, benefiting the profitability per ton of steel [4]. - Shougang has established a competitive advantage in ultra-low emissions and low-carbon initiatives, positioning it to benefit from increasingly stringent environmental policies in the medium to long term [4][8]. - The company is the first in the world to achieve ultra-low emissions in long-process steelmaking, and it has been recognized as a benchmark enterprise for dual-carbon best practices by the China Iron and Steel Association [8]. Financial Summary - The total market capitalization of Shougang is 21,435 million CNY, with a total share capital of 7,795 million shares [5]. - The company's net profit for 2024 is projected to be 842 million CNY, with earnings per share (EPS) estimates of 0.11 CNY for 2024, 0.13 CNY for 2025, and 0.15 CNY for 2026 [9][8]. - The net debt ratio is reported at 60.61%, showing a significant decrease from a high of 73.60% in 2016 [8]. Market Position and Trends - The company is expected to benefit from new energy efficiency standards for power transformers, which will increase demand for high magnetic permeability electrical steel [8]. - The report highlights that Shougang's ultra-thin high magnetic permeability electrical steel maintains the highest domestic sales volume, indicating a strong market position [8]. - The steel industry is facing pressure from environmental regulations, with a government plan aiming for 30% of steel production to meet benchmark energy efficiency levels by 2025 [8].