BSGCO(000959) 华泰证券·2024-08-23 04:03Investment Rating - The report maintains an "Accumulate" rating with a target price of RMB 3.15 [2][7]. Core Views - The company reported a revenue of RMB 56.684 billion for the first half of 2024, a year-on-year decrease of 1.19%, and a net profit attributable to shareholders of RMB 395 million, down 3.80% year-on-year. However, the second quarter showed a net profit of RMB 419 million, indicating a recovery from losses [2]. - The main business gross margin for the first half of 2024 was 3.74%, a decrease of 1.43 percentage points year-on-year, with specific margins for different products showing varied performance [3]. - The company has seen steady growth in the production of three strategic products, with total sales of steel billets and steel products reaching 11.035 million tons, an increase of 2.06% year-on-year [4]. - The demand for high magnetic permeability silicon steel is expected to continue growing due to the revision of transformer energy efficiency standards, which will further drive the demand for related products [5]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved a revenue of RMB 56.684 billion and a net profit of RMB 395 million, with a second-quarter net profit of RMB 419 million indicating a recovery [2]. - The gross margin for the main business was 3.74%, down 1.43 percentage points year-on-year, with specific product margins showing mixed results [3]. Product Performance - The company reported a total sales volume of 11.035 million tons for steel billets and steel products, reflecting a year-on-year increase of 2.06%. The production of electrical steel and automotive sheets also saw significant growth [4]. Market Outlook - The revised energy efficiency standards for transformers are expected to boost the demand for high magnetic permeability silicon steel, aligning with the national dual carbon goals [5].