XINXING PIPES(000778) Huachuang Securities·2025-04-14 08:24Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 4.3 yuan [2][8]. Core Viewpoints - The company's revenue for 2024 was 36.194 billion yuan, a decrease of 16.32% year-on-year, with a net profit attributable to shareholders of 167 million yuan, down 87.60% year-on-year. The fourth quarter of 2024 saw a revenue of 9.114 billion yuan, an increase of 31.48% year-on-year, but a net loss of 316 million yuan [2][4]. - The steel industry is facing challenges due to oversupply and declining demand, with the steel price index dropping by 8.40% year-on-year, while costs only decreased by 4.41%, leading to compressed profit margins for the company [8]. - Despite industry pressures, the company has seen a 6% increase in market share for ductile iron pipes and a 29% increase in export sales, maintaining a gross margin of 9.32% for its ductile iron products [8]. - The company has adjusted its steel product mix, increasing the proportion of special steel by 24%, which is expected to enhance profitability [8]. - The report forecasts a rebound in the steel industry by 2025, which could provide performance elasticity for the company, with projected net profits for 2025-2027 revised to 636 million yuan, 697 million yuan, and 866 million yuan respectively [8]. Financial Summary - For 2024, the company reported total revenue of 36,194 million yuan, with a year-on-year growth rate of -16.3%. The net profit attributable to shareholders was 167 million yuan, with a year-on-year growth rate of -87.6% [4]. - The earnings per share (EPS) for 2024 is projected at 0.04 yuan, with a price-to-earnings (P/E) ratio of 78 [4]. - The company’s total assets are estimated at 53.25 billion yuan, with a debt-to-equity ratio of 49.8% [9].