CITIC Steel(000708) 中信建投·2025-03-26 07:32Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% [4]. Core Insights - The company reported a total revenue of 109.2 billion yuan for 2024, a decrease of 4.22% year-on-year, with a net profit attributable to shareholders of 5.126 billion yuan, down 10.41% year-on-year [2][12]. - The production volume for 2024 was 20.16 million tons, reflecting a year-on-year increase of 1.5%, while external sales remained flat at 18.89 million tons [4][10]. - The company has successfully integrated acquisitions, particularly in the energy sector, which now accounts for 34% of its downstream structure, making it the largest segment [4][9]. Summary by Sections Financial Performance - The gross profit for 2024 was 14 billion yuan, a decline of 1 billion yuan, with a gross margin of 12.85%, down 0.29% [3][12]. - The net profit margin was 4.69%, a decrease of 0.32% year-on-year, with a weighted average return on equity of 13.05%, down 2.5% [3][12]. Sales and Production - The company achieved a total production of 20.16 million tons in 2024, with external sales of 18.89 million tons, including 2.2 million tons in exports, which decreased by 7.6% [4][10]. - The downstream structure remains consistent with 2023, with the energy sector leading at 34%, followed by the automotive sector at 28% and machinery at 19% [4][10]. Product Performance - The core product, rebar, maintained a gross margin of 14.5%, while seamless pipes saw an increase in gross margin to 15% [9]. - The company has developed 55 green low-carbon products, achieving sales of 1.257 million tons [4][10]. Future Outlook - The company is focusing on international expansion, with plans for projects in Southeast Asia, the Middle East, North America, and Europe, aiming for a comprehensive "resource + main business + distribution" strategy [10]. - Profit forecasts for 2025-2027 project net profits of 5.55 billion yuan, 6.22 billion yuan, and 7 billion yuan, respectively, with corresponding P/E ratios decreasing over the years [10][12].