Baosteel(SH:600019) Minsheng Securities·2024-08-29 05:41Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for investment [3][4]. Core Insights - The company reported a revenue of 163.25 billion yuan for H1 2024, a decrease of 4.1% year-on-year, while the net profit attributable to shareholders was 4.55 billion yuan, down 0.2% year-on-year. However, the net profit excluding non-recurring items increased by 12.8% year-on-year to 4.24 billion yuan [1][3]. - The company continues to optimize its product structure and expand its key projects, with a focus on enhancing competitiveness through strategic investments and product innovation [3][4]. Summary by Relevant Sections Financial Performance - In H1 2024, the company's steel sales volume was 25.51 million tons, a slight decline of 0.2% year-on-year. The average product price was 4,702 yuan per ton, down 4.97% year-on-year, while the gross margin increased by 0.63 percentage points to 5.73% [2][3]. - For Q2 2024, revenue was 82.44 billion yuan, a year-on-year decrease of 9.7%, but a quarter-on-quarter increase of 2%. The net profit for Q2 was 2.62 billion yuan, down 3.3% year-on-year but up 35.9% quarter-on-quarter [1][2]. Future Outlook - The company aims to enhance its product structure, achieving a 16.5% year-on-year increase in the sales volume of its "1+1+N" product line, totaling 15.09 million tons. It also set a record for export orders in the first half of the year, reaching 3.035 million tons [3]. - Key projects include the optimization of production structures at various bases, with several projects currently in preparation or construction phases, such as the green manufacturing demonstration project for high-grade oriented silicon steel [3][4]. Investment Projections - The company is expected to achieve net profits of 9.98 billion yuan, 11.81 billion yuan, and 13.89 billion yuan for the years 2024, 2025, and 2026, respectively. The corresponding price-to-earnings ratios (PE) are projected to be 13, 11, and 9 times based on the closing price on August 28 [3][4].