CITIC Steel(SZ:000708) EBSCN·2025-08-20 12:41Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [5]. Core Insights - The company reported a revenue of 54.715 billion yuan for the first half of 2025, a year-on-year decrease of 4.02%, while the net profit attributable to shareholders was 2.798 billion yuan, an increase of 2.67% year-on-year [1]. - The company is accelerating its internationalization projects and has made progress on key overseas projects, aiming for long-term growth [3]. - The company plans to implement semi-annual dividends to enhance shareholder returns, with a total cash dividend of 1.009 billion yuan for the first half of 2025, representing a payout ratio of 36.07% [3]. Financial Performance Summary - In the first half of 2025, the company achieved a steel sales volume of 9.8226 million tons, a year-on-year increase of 3.23%, with exports remaining stable at 1.1216 million tons [1]. - The average selling price of steel products decreased by 7.02% year-on-year to 5,570 yuan per ton, while the gross profit per ton increased by 8.56% year-on-year to 800 yuan per ton [2]. - The company is actively adjusting its product structure to capture demand in sectors such as wind power, oil and gas, hydrogen energy, and new energy vehicles [2]. Profit Forecast and Valuation - The company is projected to achieve net profits of 5.590 billion yuan, 6.236 billion yuan, and 6.825 billion yuan for the years 2025, 2026, and 2027, respectively, reflecting a stable growth trajectory [3][4]. - The report outlines a revenue forecast of 113.869 billion yuan for 2025, with a growth rate of 4.27% [4]. - The estimated P/E ratio for 2025 is 11, with a projected P/B ratio of 1.4 [4][12].