SINOSTEEL ENTEC(000928) 广发证券·2024-07-17 04:01Investment Rating - The report does not explicitly state an investment rating for the company Core Insights - The company has seen a significant increase in overseas orders, driven by stable growth in capital expenditures from overseas steel enterprises, with a notable increase in new contracts signed in 2023 [4][24] - The overseas low-carbon metallurgy engineering market is projected to have a market space of approximately 258.6 billion yuan from 2024 to 2026, indicating strong future growth potential [7][11] - The company has established a robust international business network, with operations in over 50 countries and a significant presence in the Belt and Road Initiative countries, contributing to a cumulative overseas contract amount of 15.06 billion USD since 2019 [12][24] Summary by Sections Overseas Orders and Market Growth - The company has secured numerous significant contracts in various countries, including Singapore, Indonesia, and Uzbekistan, with total contract amounts reaching billions of yuan [1] - The capital expenditures of major overseas steel companies have shown a stable growth trend from 2021 to 2023, which is expected to continue, further benefiting the company [4][5] Low-Carbon Metallurgy Market - The overseas low-carbon metallurgy engineering market is estimated to grow significantly, with annual investments projected to reach 745 billion yuan in 2024, 856 billion yuan in 2025, and 985 billion yuan in 2026 [8][11] - The company is well-positioned to capitalize on this trend due to its advanced low-carbon metallurgy technologies and ongoing projects [14][46] International Business Network - The company has a well-established international business network, with 14 overseas branches and extensive cooperation with over 50 well-known enterprises globally [12][24] - In 2023, the company signed new contracts worth 10.55 billion yuan, marking a year-on-year growth of 55% [24][25] Strategic Developments - The ongoing debt restructuring with Baowu Group is expected to enhance the company's internationalization and green low-carbon strategies, providing a platform for technological advancements [34][35] - The integration with Baowu Group is anticipated to reduce competition and enhance resource complementarity, further supporting the company's growth in low-carbon metallurgy [39][40]