HONGLU(SZ:002541) EBSCN·2025-05-02 13:26Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has faced operational pressure over the past 24 years, but there has been an improvement in profit per ton in Q1 2025 compared to the previous quarter [1][11] - The company’s total revenue and net profit for 2024 were 21.5 billion and 770 million yuan, respectively, reflecting a year-on-year decline of 9% and 35% [5][11] - In Q1 2025, the company achieved total revenue of 4.8 billion yuan, a year-on-year increase of 9%, while net profit decreased by 33% [5][11] Summary by Sections Revenue and Profitability - In 2024, the company’s steel structure business generated revenue of 20.8 billion yuan, down 9% year-on-year, with a sales volume of 4.33 million tons, up 2% [6] - The average price per ton was 4,803 yuan, a decrease of 10% year-on-year due to falling steel prices [6] - The gross profit margin for the steel structure business was 17.1 billion yuan, down 17% year-on-year, with a gross profit per ton of 394 yuan, down 18% [6] Operational Performance - The company signed new orders worth 28.3 billion yuan in 2024, a decrease of 5% year-on-year, with a production volume of 4.51 million tons [6] - The production and sales rate was 96.1%, an increase of 1.2 percentage points year-on-year [6] Q1 2025 Performance - In Q1 2025, the company produced 1.05 million tons, with a sales volume of approximately 1 million tons [10] - The gross profit per ton was 475 yuan, down 57% year-on-year, primarily due to a decline in steel prices [10] - The company reported a significant reduction in R&D expenses, indicating a potential peak in the intensity of its smart transformation efforts [10] Financial Forecasts - The company’s net profit forecasts for 2025 and 2026 have been adjusted to 1.03 billion yuan and 1.15 billion yuan, respectively, reflecting a downward revision of 21% and 30% [11] - The report anticipates improvements in profitability as the company’s smart transformation progresses [11] Market Position - The company’s stock price has experienced a significant correction, and the improvement in ton profit in Q1 2025 supports the "Buy" rating [11]