xinsteel(SH:600782) EBSCN·2025-08-28 03:58Investment Rating - The report maintains an "Accumulate" rating for the company [5] Core Insights - In H1 2025, the company achieved operating revenue of 17.512 billion yuan, a year-on-year decrease of 18.33%, but turned a profit with a net profit attributable to shareholders of 1.11 billion yuan, compared to a loss in the previous year [1] - The company has seen a significant improvement in high-end product sales, with hot-rolled high-end product sales increasing by 97.6% and other premium products also showing substantial growth [2] - The company emphasizes investor returns with a consistent cash dividend policy, having distributed a total of 6.38 billion yuan in dividends from 2019 to 2023, with a payout ratio reaching 94.80% in 2024 [3] Financial Performance Summary - In H1 2025, the company's steel billet production decreased by 13.93% year-on-year, with an average selling price per ton of steel at 3,376.56 yuan, down 9.02% year-on-year [1] - The company’s net profit forecast for 2025 has been revised down by 67.27% to 353 million yuan, with new forecasts for 2026 and 2027 set at 474 million yuan and 754 million yuan respectively [3] - The company’s total assets are projected to be 49.128 billion yuan in 2025, with total liabilities at 22.085 billion yuan, resulting in a debt-to-asset ratio of 45% [11][12] Product Development and Market Position - The company has established a comprehensive premium steel product system, achieving leading market shares in shipbuilding steel plates and pressure vessel plates, and has developed ultra-thin electrical steel products for the new energy vehicle sector [2] - The company’s high-end electrical steel products have gained significant traction, supplying major players in the new energy vehicle market [2] Cash Flow and Dividend Policy - The company has maintained a strong cash flow from operating activities, with a projected cash flow of 1.339 billion yuan in 2025 [10] - The dividend per share for 2024 is set at 0.10 yuan, representing a significant portion of the net profit attributable to shareholders [3]