Investment Rating - The report maintains a "Buy" rating for the company [5][8] Core Views - The company experienced a significant increase in profitability in the fourth quarter, with a net profit of 612 million yuan, a year-on-year increase of 2774.96% and a quarter-on-quarter increase of 221.51% [2] - The company is focusing on high-end products, with the proportion of key products increasing to 55.27%, up 6.84 percentage points from 2023 [4] - The company aims to optimize its product structure and has exited the trading business to focus on high-quality steel production [3] Financial Performance - In 2024, the company achieved operating revenue of 41.804 billion yuan, a year-on-year decrease of 41.24% [3] - The net profit attributable to the parent company for the year was 32.78 million yuan, a decrease of 93.41% year-on-year [2] - The company’s sales gross margin improved significantly in the fourth quarter, reaching 5.18% [2] Production and Sales - The company produced 9.9293 million tons of steel in 2024, a year-on-year decrease of 8.59% [3] - The sales volume was 9.9696 million tons, down 7.82% year-on-year [3] Future Outlook - The company is expected to recover significantly in profitability after a short-term downturn, with projected net profits of 900 million yuan, 1.1 billion yuan, and 1.34 billion yuan for 2025, 2026, and 2027 respectively [5] - The valuation is expected to have significant recovery potential, with a market value around 17 billion yuan at the mid-point of the valuation range [5]