CITIC Steel(SZ:000708) GOLDEN SUN SECURITIES·2025-04-19 10:23Investment Rating - The report maintains a "Buy" rating for the company, citing its leading position in the special steel industry and improving capacity integration capabilities [3][5]. Core Views - The company reported a year-on-year increase in net profit for Q1 2025, with a net profit of 1.384 billion yuan, up 1.76% year-on-year and 7.31% quarter-on-quarter, indicating a recovery in profitability [1][3]. - The demand for special steel is expected to grow in the long term due to favorable manufacturing policies and the maturation of the steel industry, leading to an anticipated recovery in sales gross margins [1][3]. - The company aims to achieve a steel production target of 18.6 million tons and an export target of 2.65 million tons in 2025, reflecting a year-on-year growth of 20.3% in exports [2][3]. Financial Performance - In Q1 2025, the company achieved operating revenue of 26.84 billion yuan, a decrease of 5.59% year-on-year, while the gross profit margin showed signs of improvement [1]. - The company's sales gross margins for the last four quarters were 12.30%, 12.51%, 14.39%, and 13.82%, indicating a gradual recovery in profitability [1]. - The projected net profits for 2025 to 2027 are 5.449 billion yuan, 5.969 billion yuan, and 6.305 billion yuan, respectively, with corresponding P/E ratios of 10.8, 9.9, and 9.4 [3][4].