BSU(600010) 国泰君安·2024-04-24 04:31Investment Rating - The investment rating for Baogang Co., Ltd. is maintained at "Buy" [1][3] - The target price is set at 2.16 CNY, down from the previous forecast of 2.48 CNY [1][3] Core Insights - In 2023, the gross profit per ton of steel has shown recovery, and the production and sales of fluorite have significantly increased [1] - The company's revenue and net profit attributable to shareholders for 2023 are reported at 70.565 billion CNY and 5.15 billion CNY, respectively, reflecting a year-on-year increase of 2.23% and 170.94% [1] - The forecast for net profit attributable to shareholders for 2024-2026 is 6.35 billion CNY, 7.99 billion CNY, and 8.69 billion CNY, respectively [1] Summary by Sections Financial Performance - The total sales volume of steel products in 2023 reached 14.36 million tons, a year-on-year increase of 7.52% [1] - The average gross profit per ton of steel improved to -106 CNY, a year-on-year increase of 38.15% [1] - The company expects further recovery in profitability in the steel segment as production increases and cost efficiencies are achieved [1] Revenue Contributions - The rare earth segment continues to contribute to revenue growth, with sales of rare earth concentrate reaching 34.69 million tons in 2023, a year-on-year increase of 9.4% [1] - The average selling price of rare earth products was approximately 26,300 CNY per ton, down 23.08% year-on-year [1] Production Capacity - The fluorite production line has been successfully commissioned, with production capacity increasing to 800,000 tons, representing a significant year-on-year growth of 327.30% [1] - The company aims to increase fluorite production to 650,000 tons in 2024, with a positive outlook for future supply-demand dynamics [1]