SHANDONG STEEL(SH:600022) Xinda Securities·2025-04-30 09:44Investment Rating - The investment rating for Shandong Steel is "Buy" [1][8] Core Views - The report highlights that Shandong Steel is gradually turning losses into profits, with future performance improvements expected [1][4] - The company reported a total revenue of 82.094 billion yuan in 2024, a year-on-year decrease of 9.26%, and a net profit attributable to shareholders of -2.258 billion yuan, indicating an expanded loss compared to the previous year [1][4] - The first quarter of 2025 showed signs of recovery with a significant increase in steel production and a reduction in losses [2][4] Financial Performance Summary - In 2024, the company’s steel production was 14.83 million tons, a slight decrease of 0.012 million tons year-on-year [4] - The average selling price of steel in 2024 was 3,643 yuan per ton, down 7% from 2023 [4] - The first quarter of 2025 saw a rebound in production to 4.04 million tons, a year-on-year increase of 0.22 million tons [4] - The report projects net profits for 2025-2027 to be -0.33 billion yuan, 0.723 billion yuan, and 1.009 billion yuan respectively, with EPS expected to be 0.00, 0.07, and 0.09 yuan per share [8] Strategic Developments - The introduction of China Baowu Steel Group has led to significant improvements in operational efficiency and management practices [4][5] - The company is focusing on management reforms and cost reductions, aiming for a turnaround with clear goals set for profitability [4][5] - Shandong Steel has actively engaged in share buybacks and has received support from its controlling shareholder to boost market confidence [8]