SHANDONG STEEL(SH:600022) Xinda Securities·2025-08-22 12:37Investment Rating - The investment rating for Shandong Steel is "Buy" [1] Core Views - The report highlights that Shandong Steel has successfully turned losses into profits, with a focus on releasing recovery momentum [1] - The company reported a revenue of 36.806 billion yuan in the first half of 2025, a year-on-year decrease of 18.60%, but achieved a net profit attributable to shareholders of 1.3 million yuan, a year-on-year increase of 101% [1][2] - The report emphasizes the improvement in gross margins for core products despite a decline in production and sales volumes [4] Financial Performance Summary - In the first half of 2025, Shandong Steel's steel production was 7.5 million tons, a decrease of 3.8% year-on-year, with a significant drop in production in the second quarter [4] - The average selling price of steel in the first half of 2025 was 3,464 yuan per ton, down 10% year-on-year [4] - The gross profit margins for various steel products improved significantly compared to the previous year, with an overall gross margin of 6.02%, an increase of 4.15 percentage points year-on-year [4][5] Strategic Initiatives - The company is actively deepening internal and external collaboration to enhance efficiency and effectiveness, focusing on management reforms and cost reductions [5] - Shandong Steel is leveraging the strategic partnership with China Baowu Steel Group to implement management changes and improve operational quality [5][8] - The report outlines the company's goals of turning losses into profits and achieving positive net income for shareholders, supported by a comprehensive management transformation plan [8] Earnings Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is 278 million yuan, 1.322 billion yuan, and 1.698 billion yuan respectively, with corresponding EPS of 0.03, 0.12, and 0.16 yuan per share [8]