Baosteel(SH:600019) INDUSTRIAL SECURITIES·2024-09-11 00:10Investment Rating - The report maintains an "Accumulate" rating for Baosteel Co., Ltd. [2] Core Views - The company reported a revenue of 163.25 billion yuan for H1 2024, a year-on-year decrease of 3.89%, while the net profit attributable to shareholders was 4.545 billion yuan, a slight decline of 0.17%. However, the net profit excluding non-recurring items increased by 14.11% to 4.235 billion yuan [1][2] - In Q2 2024, the company achieved a revenue of 82.437 billion yuan, a quarter-on-quarter increase of 2.0% but a year-on-year decrease of 9.7%. The net profit attributable to shareholders rose by 35.9% quarter-on-quarter to 2.618 billion yuan, although it was down 3.3% year-on-year [1][2] - The company demonstrated strong resilience in a challenging industry environment, with its profit performance declining less than the industry average, as the national crude steel output fell by 1.1% in H1 2024 [2][4] Summary by Sections Financial Performance - For H1 2024, the company sold 25.514 million tons of steel, a slight decrease of 0.19% year-on-year. The average selling price per ton was 6,398 yuan, with a cost of 6,032 yuan, resulting in a gross profit of 367 yuan per ton [2][4] - The report forecasts the company's net profit for 2024-2026 to be 9.735 billion yuan, 11.525 billion yuan, and 12.487 billion yuan respectively, with corresponding EPS of 0.44, 0.52, and 0.56 yuan [4][5] Market Position and Strategy - The company has been actively upgrading its product structure and expanding its market reach, achieving a record high of 3.035 million tons in export orders during H1 2024 [2][4] - Cost control measures have been effective, with a reduction of 4.55 billion yuan in costs during H1 2024, supporting the company's operational performance [2][4] Industry Context - The steel industry is facing increased downward pressure, with rising procurement costs and widespread losses among key enterprises. However, Baosteel's strong market position and risk management capabilities have allowed it to maintain a leading performance in the domestic industry [2][4]