SHANDONG STEEL(SH:600022) Xinda Securities·2024-10-31 10:03Investment Rating - The investment rating for the company is "Buy" [1]. Core Views - The report highlights that the company is experiencing a significant impact from the strategic investment by China Baowu Steel Group, which is expected to lead to improved operational efficiency and profitability. The company aims to achieve a turnaround in profitability and positive net income for the parent company [1][3]. - The report emphasizes the company's management transformation and strategic goals, including cost reduction and operational efficiency improvements, which are expected to yield positive results in the future [1][3]. Financial Performance Summary - For the first three quarters of 2024, the company reported total revenue of 643.34 billion yuan, a year-on-year decrease of 5.92%. The net profit attributable to the parent company was a loss of 14.75 billion yuan, down 182.64% year-on-year [1]. - The company's steel production for the first three quarters of 2024 was 11.26 million tons, an increase of 1.8% year-on-year, although the third quarter saw a decrease in production [1]. - The average selling price of steel per ton was 3,742 yuan, down 6.3% from the same period last year [1]. Earnings Forecast - The forecast for net profit attributable to the parent company for 2024-2026 is projected to be -1.879 billion yuan, -578 million yuan, and 600 million yuan respectively. The expected EPS for the same period is -0.18, -0.05, and 0.06 yuan per share [3][4]. - The report indicates that the company is positioned to benefit from its regional economic advantages and the strategic partnership with China Baowu Steel Group, which is expected to enhance its profitability in the long term [3].