SHANDONG STEEL(SH:600022) Xinda Securities·2025-04-30 10:23Investment 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][2] - The first quarter of 2025 showed signs of recovery with a significant increase in steel production and a slight rise in steel prices, suggesting a potential turnaround in performance [4][8] Financial Performance Summary - In 2024, the company achieved a total revenue of 82.094 billion yuan, down 9.26% year-on-year, and a net profit of -2.258 billion yuan, which is a 465% increase in loss compared to 2023 [1][7] - The first quarter of 2025 saw a revenue of 19.255 billion yuan, a 15.66% decrease year-on-year, but a significant reduction in losses with a net profit of -0.14 billion yuan [2][4] - The company’s steel production in 2024 was 14.83 million tons, a slight decrease from the previous year, but a notable recovery in the first quarter of 2025 with production reaching 4.04 million tons, a year-on-year increase of 22,000 tons [4][8] Strategic Developments - The introduction of China Baowu Steel Group has led to significant improvements in operational efficiency, with a focus on management reforms and cost reductions [4][5] - The company aims to achieve profitability through strategic goals such as "turning losses into profits" and enhancing operational quality [4][8] - Shandong Steel has actively engaged in share buybacks and stock purchases by major shareholders to bolster market confidence [8]