FSSS(600399) 华福证券·2024-09-04 14:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark index within the next six months [7]. Core Views - The company achieved a revenue of 4.277 billion yuan in the first half of 2024, a year-on-year increase of 1.34%, and a net profit of 228 million yuan, up 45.08% year-on-year [1]. - The company is focusing on enhancing its high-end product offerings and increasing its special steel production capacity, particularly in high-temperature alloys [1]. - The report highlights a decrease in production volume due to maintenance activities, but an increase in product prices has supported revenue growth [1]. Financial Performance Summary - In the first half of 2024, the company produced 329,500 tons of steel, a decrease of 2.83% year-on-year, with steel sales of 238,100 tons, down 3.45% year-on-year [1]. - The average selling prices for key products such as alloy structural steel and stainless steel increased by 14.06% and 3.89% respectively compared to the previous year [1]. - The gross profit margins for alloy structural steel and high-temperature alloys improved, contributing positively to overall profitability [1]. Production and R&D Developments - The company is advancing its "special steel" strategy, with ongoing research and development efforts resulting in 49 projects and a total R&D expenditure of 186 million yuan [1]. - Planned production enhancements include new production lines for military products and high-alloy small bars, aimed at increasing capacity and optimizing product mix [1]. - The company is committed to high-end product development, focusing on high-temperature alloys, which are expected to see increased demand and higher selling prices [1]. Earnings Forecast and Investment Advice - The net profit forecasts for 2024-2026 have been adjusted to 508 million, 644 million, and 825 million yuan respectively, reflecting a downward revision due to lower-than-expected production volumes [2]. - The company is positioned as a leader in the domestic special steel and high-temperature alloy market, with strong technical capabilities and ongoing production upgrades expected to capture growth opportunities [1][2].