Nisco(600282) 华福证券·2024-05-23 01:30Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [5]. Core Views - The company is focusing on advanced steel materials to strengthen its core business and is increasing efforts to expand into overseas markets [2][3]. - The steel industry is expected to see an improvement in supply-demand dynamics, which may lead to a recovery in profits for steel companies [2][8]. - The company has established a leading position in specialized steel products and is actively exploring new industries along the steel supply chain [3][9]. Summary by Sections Company Overview - Nanjing Steel Co., Ltd. (stock code: 600282.SH) is a leading full-process steel enterprise with an annual production capacity of over 10 million tons [14]. - The company has a complete production process from ore selection to steel rolling and is a significant player in the production of medium and thick plates [14]. Industry Analysis - The steel industry is undergoing supply-side structural reforms, which are expected to alleviate overcapacity issues [8][28]. - In 2023, China's crude steel production remained stable, indicating a commitment to production control [8][29]. - The global steel demand is projected to rebound by 1.7% in 2024, which is favorable for China's steel export situation [2][8]. Financial Performance - In 2023, the company achieved a revenue of 72.54 billion yuan, a year-on-year increase of 2.65%, while the net profit was 2.12 billion yuan, a slight decline of 1.67% [18][19]. - The company’s earnings per share (EPS) for 2024-2026 are projected to be 0.40, 0.44, and 0.51 yuan per share, respectively [3][9]. Investment Forecast - The company is expected to maintain stable operations even at the bottom of the industry profit cycle, with a focus on high-value-added products [3][9]. - The report anticipates that the company will continue to enhance its market competitiveness through the development of advanced steel materials [2][3]. Market Positioning - The company has established strong partnerships with key clients in domestic and international markets, significantly increasing its export volume [2][3]. - In 2023, the company exported 1.2 million tons of steel, marking an 85% year-on-year increase [2]. Future Outlook - The company is expected to benefit from ongoing structural adjustments in the steel industry and a gradual recovery in downstream demand [8][9]. - The focus on high-end steel products and international market expansion is likely to enhance the company's performance resilience [2][3].