BSU(SH:600010) SINOLINK SECURITIES·2025-04-20 12:23Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's revenue for 2024 is projected at 681 billion RMB, a year-on-year decrease of 3.51%, with a net profit attributable to shareholders of 2.65 billion RMB, down 48.64% year-on-year [2] - In Q4 2024, the company achieved a revenue of 182.24 billion RMB, an increase of 24.34% quarter-on-quarter and 7.31% year-on-year, with a net profit of 7.81 billion RMB, marking a turnaround from losses and a year-on-year increase of 1835% [2] - The increase in sales volume and prices in the rare earth business significantly improved the company's profitability [3] - The company continues to maintain high R&D investment while reducing period expenses [3] - The product structure is continuously optimized, with a 9.65% year-on-year increase in steel sales and a record production of over 1.5 million tons of rare earth steel [3] Summary by Sections Revenue and Profitability - The company reported a revenue of 681 billion RMB for 2024, down 3.51% from the previous year, and a net profit of 2.65 billion RMB, down 48.64% year-on-year [2][10] - Q4 2024 revenue was 182.24 billion RMB, up 24.34% quarter-on-quarter and 7.31% year-on-year, with a net profit of 7.81 billion RMB, indicating a significant recovery [2] Business Performance - The rare earth business saw both volume and price increases, with sales volume for key products rising significantly in Q4 2024 [3] - The company’s gross profit and gross margin improved, with gross profit increasing by 58.04% quarter-on-quarter [3] Strategic Outlook - The outlook for rare earth prices is positive due to export controls and reduced overseas supply, which may enhance the company's strategic value [4] - The steel business is expected to benefit from reduced production and a weakening iron ore market [4] Financial Projections - Revenue projections for 2025-2027 are 617 billion RMB, 635 billion RMB, and 646 billion RMB, with net profits expected to rise to 22 billion RMB, 36 billion RMB, and 45 billion RMB respectively [5][10]