CITIC Steel(SZ:000708) EBSCN·2024-08-20 07:41Investment Rating - The report maintains a "Buy" rating for the company [2][3] Core Views - The company reported a revenue of 57.005 billion yuan for the first half of 2024, a year-on-year decrease of 2.26%, and a net profit attributable to shareholders of 2.725 billion yuan, down 10.34% year-on-year [1] - The company is focusing on consolidating its leading position in bearing and automotive steel, demonstrating stable operations that reflect its weak cycle attributes [1] Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 28.576 billion yuan, a year-on-year decrease of 5.86%, but a slight increase of 0.52% compared to Q1 2024 [1] - The average selling price of steel products decreased by 3.22% year-on-year to 5,991 yuan per ton, while the gross profit per ton of steel fell by 12.60% to 737 yuan [1] - The company sold 9.5155 million tons of steel in H1 2024, a year-on-year increase of 0.99%, with plans to increase sales by 2.29% in the second half of the year [1] Product Segments - The sales volume of bearing steel exceeded 1 million tons, up 13.04% year-on-year, and automotive steel sales surpassed 3 million tons, increasing by 13.12% year-on-year [1] - The company has cultivated over 80 "little giant" projects, achieving a sales volume of 3.86 million tons in these niche markets, reflecting a growth of 15.22% year-on-year [1] Profit Forecast and Valuation - The profit forecasts for 2024 to 2026 have been adjusted downwards by 13.57%, 17.66%, and 16.52% respectively, with expected net profits of 5.440 billion, 5.991 billion, and 6.794 billion yuan [2] - The report anticipates that the company's profitability will improve as it continues to optimize its product structure [2]