BSGCO(000959) 光大证券·2024-08-23 10:41Investment Rating - The report maintains a "Buy" rating for the company [2][3]. Core Views - The company achieved total operating revenue of 56.684 billion yuan in the first half of 2024, a year-on-year decrease of 1.19%, and a net profit attributable to the parent company of 395 million yuan, down 3.80% year-on-year. In Q2 2024, the operating revenue was 27.145 billion yuan, a year-on-year decrease of 5.26% and a quarter-on-quarter decrease of 8.11%, with a net profit of 419 million yuan, a year-on-year decrease of 10.61%, but a quarter-on-quarter turnaround to profitability [1][2]. Summary by Sections Financial Performance - In H1 2024, the company's strategic and key product output accounted for 75% of total steel production, with a total output of 8.8112 million tons, an increase of 9 percentage points year-on-year. The output of three strategic products (electrical steel, automotive plates, and tin (chromium) plates) reached 3.4542 million tons, a year-on-year increase of approximately 10% [1]. - The output of high magnetic permeability silicon steel in H1 2024 was 162,100 tons, up 19% year-on-year, driven by increased demand from domestic ultra-high voltage projects and overseas markets [1]. Product Structure Optimization - The company signed a memorandum with Brilliance BMW to establish a green low-carbon steel supply chain, planning to provide low-carbon automotive steel plates starting in 2025, with a target of reducing carbon emissions by over 40% compared to 2020 levels [2]. Profit Forecast and Valuation - Due to weakening demand in the steel industry, the company’s net profit forecasts for 2024 and 2025 were lowered by 20.83% and 24.03% to 1.233 billion yuan and 1.339 billion yuan, respectively. A new forecast for 2026 net profit is set at 1.488 billion yuan, with expectations for improved profitability as product structure continues to upgrade [2].