Baosteel(600019) 华龙证券·2024-11-09 08:36Investment Rating - The investment rating for Baosteel Co., Ltd. is "Accumulate" (first coverage) [1] Core Views - The company's performance is under pressure due to weak demand, leading to a slight decline in product sales and prices. In the first three quarters, the company achieved total operating revenue of 242.856 billion yuan, a year-on-year decrease of 4.91%. The net profit attributable to the parent company was 5.882 billion yuan, down 29.56% year-on-year [1] - The company is optimizing its product structure and increasing its share in overseas markets. The sales volume of steel products in the first three quarters was 38.5 million tons, a decrease of 1.21% year-on-year. The average selling price of steel products was 4,573 yuan/ton, down 5.58% year-on-year [1] - The company has a strong commitment to shareholder returns, with a proposed cash dividend of 0.11 yuan per share for the first half of 2024, accounting for 52.13% of the net profit attributable to the parent company [1] Financial Performance Summary - In Q3 2024, the company achieved operating revenue of 79.605 billion yuan, a year-on-year decrease of 6.53%, and a net profit of 1.338 billion yuan, down 64.78% year-on-year [1] - The gross profit margin for the first three quarters was 5.26%, down 0.90 percentage points year-on-year, while the gross profit margin for Q3 was 4.30%, down 3.99 percentage points year-on-year [1] - The company expects net profits attributable to the parent company for 2024-2026 to be 9.614 billion, 10.548 billion, and 10.973 billion yuan, respectively, with corresponding P/E ratios of 15.3, 13.9, and 13.4 times [1][2] Market Data - The company's stock price is currently 6.68 yuan, with a 52-week price range of 5.50 to 7.63 yuan. The total market capitalization is approximately 146.861 billion yuan [1] - The company has been actively expanding its export opportunities, achieving a record high export contract volume of 4.66 million tons in the first three quarters [1]