CITIC Steel(SZ:000708) EBSCN·2024-03-13 16:00Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - In 2023, the company achieved a record high in sales volume, with total revenue reaching 1140.19 billion yuan, a year-on-year increase of 15.94%. However, the net profit attributable to shareholders was 57.21 billion yuan, down 19.48% year-on-year [1] - The company expects sales volume to reach 1920 million tons in 2024, representing a year-on-year growth of 1.64% [1] - The company has implemented a "Quality Return Double Improvement" action plan, focusing on product industrialization, innovation-driven development, and optimizing industrial layout [2] Summary by Sections Financial Performance - In Q4 2023, the company reported revenue of 276.05 billion yuan, a year-on-year increase of 20.89%, but a quarter-on-quarter decrease of 1.72%. The net profit for the quarter was 13.47 billion yuan, down 13.77% year-on-year but up 0.93% quarter-on-quarter [1] - The average selling price of steel per ton was 6036 yuan, a decrease of 6.83% year-on-year, while the gross profit per ton was 793 yuan, down 16.93% year-on-year [1] Sales Volume and Product Segmentation - The company achieved a sales volume of 1889 million tons in 2023, a year-on-year increase of 24.44%, marking a historical high [1] - The sales volume by application in 2023 was as follows: automotive (28%), energy (34%), machinery (19%), bearings (10%), high-end special materials (2%), and others (7%). Notably, energy steel sales exceeded 600 million tons, growing by 56% year-on-year [1] Future Outlook - The company has adjusted its net profit forecasts for 2024 and 2025 downwards by 41.07% and 34.67%, respectively, due to declining downstream demand. The new net profit forecast for 2026 is set at 81.38 billion yuan [2]