CITIC Steel(000708) 东方证券·2025-04-02 01:02Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Views - The company has shown significant improvement in its fourth-quarter performance, with a notable increase in net profit and gross margin compared to previous quarters [11]. - The company is focusing on upgrading its product structure, which has led to increased sales in key sectors such as bearing steel and automotive steel [11]. - The company has a strong commitment to high dividends, proposing a cash dividend of 5.07 yuan per 10 shares, which represents approximately 49.95% of its net profit for the year [11]. Financial Performance Summary - The company's revenue for 2024 is projected at 109.203 billion yuan, a decrease of 4.2% year-on-year [11]. - The net profit attributable to the parent company for 2024 is expected to be 5.126 billion yuan, down 10.4% from the previous year [11]. - The earnings per share (EPS) for 2025-2027 are forecasted to be 1.12, 1.20, and 1.28 yuan respectively [3][12]. - The gross margin is expected to improve from 12.8% in 2024 to 15.0% by 2027 [5][11]. Valuation and Price Target - Based on a price-to-earnings (PE) ratio of 14x for comparable companies, the target price is set at 15.68 yuan [3][12]. - The current stock price as of April 1, 2025, is 12.65 yuan, indicating potential upside [6].