SINOSTEEL ENTEC(SZ:000928) GUOTAI HAITONG SECURITIES·2026-03-17 07:39Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company aims to become a world-class metallurgical engineering technology company under the strategic guidance of Baowu during the 14th Five-Year Plan period, providing specialized industrial engineering technology services for the green and low-carbon development of the steel industry [2][3] - The company maintains its earnings per share (EPS) forecasts for 2025-2027 at 0.51, 0.56, and 0.60 yuan, reflecting growth rates of -12.8%, 9.4%, and 8.1% respectively [3] - The target price is set at 9.14 yuan, corresponding to a price-to-earnings (PE) ratio of 16.3 times for 2026 [3] Financial Summary - Total revenue for 2023 is projected at 26,377 million yuan, with a year-on-year growth of 40.9%. However, a decline of 33.1% is expected in 2024 [5] - Net profit attributable to the parent company is forecasted to be 761 million yuan in 2023, with a growth of 20.6% [5] - The company has a dividend yield (TTM) of 4.34% [3] Industry Context - The Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission jointly issued a notice on March 16 regarding the development of hydrogen energy comprehensive application pilot projects, which will support the transition of the steel industry from high-carbon to low-carbon processes [3] - The company has successfully implemented the HyCROF technology in commercial demonstration projects, validating the feasibility of the process for hydrogen metallurgy [4] - The company has undertaken significant projects in the DRI field, including the world's largest production lines and the first million-ton hydrogen-based vertical furnace in China [4]