CBGF(SZ:002478) HTSC·2025-03-30 04:00Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of RMB 6.48 [8][9]. Core Views - The company reported a revenue of RMB 5.696 billion in 2024, a year-on-year decrease of 14.48%, and a net profit attributable to shareholders of RMB 634 million, down 19.00% year-on-year [1][2]. - The decline in profitability is attributed to the downturn in the oil well pipe market, while the boiler pipe segment saw a revenue increase of 22.62% due to new domestic thermal power unit constructions [3][4]. - The company is focusing on high-end markets such as new energy, fine chemicals, and marine equipment, aiming to develop products with technological barriers and accelerate the domestic substitution process [3][4]. Summary by Sections Financial Performance - In 2024, the company's comprehensive gross margin was 16.76%, a decrease of 2.01 percentage points year-on-year, with the fourth quarter gross margin at 17.45%, an increase of 0.35 percentage points quarter-on-quarter [2]. - The total operating revenue for 2024 was RMB 5.696 billion, with a year-on-year decline of 14.48% [7]. Business Segmentation - The company's steel pipe business revenue decreased by 14.48% in 2024, primarily due to a 37.14% drop in oil casing revenue, which saw a gross margin decline of 6.67 percentage points to 15.95% [3]. - Conversely, the boiler pipe segment benefited from new constructions and renovations, leading to a revenue increase of 22.62% and a gross margin rise of 5.06 percentage points to 22.31% [3]. Future Outlook - The company is in the process of installing new production lines aimed at high-end markets, including semiconductor and new energy materials [4]. - The earnings per share (EPS) forecast for 2025-2027 is projected to be RMB 0.72, RMB 0.79, and RMB 0.83 respectively, with a target price set at 9 times the price-to-earnings ratio [5][8].