Valin Steel(000932) 华福证券·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 6.26 CNY, indicating an expected upside of over 20% within the next six months [3][7]. Core Views - The company reported a total revenue of 163.9 billion CNY in 2023, a decrease of 2.5% year-on-year, and a net profit of 5.08 billion CNY, down 20.38% year-on-year. The fourth quarter of 2023 saw a revenue of 44.06 billion CNY, an increase of 8.59% quarter-on-quarter and 0.79% year-on-year [1]. - The company has demonstrated strong pricing power and resilience in performance despite price declines, with a focus on optimizing product structure [1]. - The company has increased its dividend payout ratio, distributing 2.3 CNY per 10 shares, totaling 1.589 billion CNY, which represents 31.29% of the net profit for 2023, up 5.3 percentage points from 2022 [1]. Financial Summary - In 2023, the company achieved a revenue of 168.1 billion CNY, with a projected revenue of 169.6 billion CNY for 2024, reflecting a growth rate of 1% [2]. - The net profit for 2023 was 6.38 billion CNY, with expectations of 5.77 billion CNY for 2024, indicating a decline of 10% [2]. - The earnings per share (EPS) for 2023 was 0.92 CNY, with projections of 0.83 CNY for 2024 and 0.95 CNY for 2025 [2]. Product and Market Position - The company has shifted its product structure towards high-end products, with specialty steel sales accounting for 63% of total sales in 2023, an increase of 3 percentage points from the previous year [1]. - Research and development investment reached 6.83 billion CNY in 2023, representing 4.2% of total revenue, with 659 new patents granted [1]. - The company has made significant advancements in production capabilities, including the launch of new high-end automotive steel production lines [1].