Baosteel(SH:600019) EBSCN·2024-08-28 23:37Investment Rating - The report maintains a rating of "Accumulate" for Baosteel Co., Ltd. [2] Core Views - In H1 2024, the company achieved operating revenue of 163.25 billion yuan, a year-on-year decrease of 4.1%, while the net profit attributable to shareholders was 4.545 billion yuan, a slight decrease of 0.17%. However, the net profit after deducting non-recurring gains and losses increased by 12.84% year-on-year to 4.235 billion yuan [2][3] - The company’s Q2 2024 results showed a significant recovery, with a net profit of 2.618 billion yuan, up 35.93% quarter-on-quarter and down 3.29% year-on-year. The net profit after deducting non-recurring gains and losses reached 2.659 billion yuan, marking a year-on-year increase of 28.55% and a quarter-on-quarter increase of 68.72% [3] - The company’s product structure is expected to continue upgrading, with the "1+1+N" product sales increasing by 16.5% year-on-year to 15.09 million tons in H1 2024 [3] Summary by Sections Financial Performance - H1 2024 operating revenue was 163.25 billion yuan, down 4.1% year-on-year; net profit attributable to shareholders was 4.545 billion yuan, down 0.17%; net profit after deducting non-recurring gains and losses was 4.235 billion yuan, up 12.84% [2] - Q2 2024 operating revenue was 82.437 billion yuan, down 9.74% year-on-year but up 2.01% quarter-on-quarter; net profit was 2.618 billion yuan, down 3.29% year-on-year but up 35.93% quarter-on-quarter; net profit after deducting non-recurring gains and losses was 2.659 billion yuan, up 28.55% year-on-year and 68.72% quarter-on-quarter [3] Sales and Production - In H1 2024, the company’s sales volume of steel products was 25.514 million tons, a slight decrease of 0.19% year-on-year; the average profit per ton of steel was 180.10 yuan, an increase of 15.09% year-on-year [2] - The company plans to sell 52.22 million tons of steel in 2024, with expected sales of 26.706 million tons in H2 2024, a year-on-year increase of 1.38% [2] Profitability and Efficiency - The company’s Q2 2024 annualized ROE was approximately 4.77% [3] - The company’s profitability is expected to improve with ongoing product structure optimization and cost control measures [3] Market Outlook - The company achieved a record high in export orders in H1 2024, totaling 3.035 million tons, but faces uncertainties in exports for H2 2024 due to increased tariff barriers and rising international trade protectionism [2][3]