CITIC Steel(SZ:000708) Orient Securities·2025-08-26 02:43Investment Rating - The report maintains a "Buy" rating for the company with a target price of 15.4 yuan, based on a PE valuation of 14X for comparable companies [4][6]. Core Views - The company achieved a net profit attributable to shareholders of 2.798 billion yuan in the first half of 2025, representing a year-on-year increase of 2.67%. The second quarter of 2025 saw a quarter-on-quarter increase of 2.21% in net profit, indicating a continuous improvement in performance [10]. - The demand for special steel is expected to continue growing, with the company focusing on strategic sectors such as energy and automotive, which are anticipated to drive profit expansion [10]. - The company has a strong dividend policy, with a cash dividend payout of 2.56 billion yuan for 2024, accounting for 49.95% of the net profit, resulting in a dividend yield of 4.45%, the highest in five years [10]. Financial Performance Summary - The company's revenue for 2025 is projected to be 104.795 billion yuan, with a year-on-year decrease of 4.0%. The operating profit is expected to be 6.543 billion yuan, reflecting a growth of 10.1% compared to the previous year [14]. - The net profit attributable to the parent company is forecasted to be 5.563 billion yuan in 2025, an increase of 8.5% year-on-year. The earnings per share are estimated at 1.10 yuan for 2025, with a gradual increase to 1.24 yuan by 2027 [4][14]. - The gross margin is expected to improve from 12.8% in 2024 to 14.2% in 2025, while the net margin is projected to rise from 4.7% to 5.3% in the same period [14].