CITIC Steel(SZ:000708) Guotai Junan Securities·2024-10-30 15:10Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's Q3 performance was slightly below expectations, with revenue of 83.504 billion and net profit of 3.836 billion, representing a year-on-year decline of 3.37% and 12.3% respectively. The Q3 revenue and net profit were 26.499 billion and 1.111 billion, down 5.66% and 16.77% year-on-year [2][3] - The company is expected to see gradual performance improvement in Q4 due to rising downstream demand and supportive policies [2] - The company is actively adjusting its product structure, with significant growth in high-end products, including bearing steel and automotive steel, which saw year-on-year increases of 13.04% and 13.12% respectively [3] - The company aims for a sales target of 19.2 million tons in 2024, an increase of 310,000 tons year-on-year, with expectations of sales and performance recovery in Q4 [3] Financial Summary - For the first three quarters of 2024, the company achieved revenue of 83.504 billion, a decrease of 3.37% year-on-year, and a net profit of 3.836 billion, down 12.3% year-on-year [3] - The projected revenues for 2024-2026 are 107.039 billion, 109.296 billion, and 110.978 billion respectively, with net profits of 5.237 billion, 6.018 billion, and 6.186 billion [4] - The earnings per share (EPS) for 2024-2026 are projected to be 1.04, 1.19, and 1.23 respectively [3][4] - The company is valued at a PE ratio of 13.38 for 2024, with a target price of 13.92 [3][12]