SINOSTEEL ENTEC(SZ:000928) Guotou Securities·2025-04-28 13:03Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 7.64 CNY [4]. Core Views - The company reported a significant improvement in gross margin and operating cash flow for 2024, despite a decline in revenue due to a high base in 2023 and challenges in the domestic metallurgy industry [2][3]. - The company has a strong order backlog, with total contracts signed amounting to 196.7 billion CNY, indicating potential for future revenue growth, particularly from overseas projects [2][9]. Revenue and Profitability - In 2024, the company achieved revenue of 17.647 billion CNY, a year-on-year decrease of 33.10%, while net profit attributable to shareholders was 835 million CNY, an increase of 9.69% [2][10]. - The gross margin for 2024 was reported at 14.50%, up by 5.71 percentage points, with both domestic and overseas operations showing significant improvements [3][9]. Cash Flow and Financial Health - The operating cash flow improved to a net inflow of 1.504 billion CNY in 2024, reflecting a year-on-year increase of 9.95% [3][11]. - The company maintained a high dividend payout ratio, distributing 4.29 billion CNY in dividends, which is 51.36% of the net profit [2][10]. Future Projections - Revenue projections for 2025-2027 are 19.189 billion CNY, 20.544 billion CNY, and 21.934 billion CNY, respectively, with expected year-on-year growth rates of 8.7%, 7.1%, and 6.8% [9][10]. - Net profit forecasts for the same period are 914 million CNY, 995 million CNY, and 1.076 billion CNY, with growth rates of 9.4%, 8.9%, and 8.2% [9][10].