中钢国际：Q2业绩大幅提速，盈利能力显著提升

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company experienced significant performance acceleration in Q2, with a notable increase in profitability driven by a substantial rise in gross margin [1]. - The overseas business is expected to maintain high growth momentum due to increasing demand from emerging markets and support from Baowu Group [2]. - The company has a strong dividend yield, with a projected payout ratio of 50% for 2024, making it attractive for investors [2]. Financial Performance Summary - In H1 2024, the company achieved revenue of 9.07 billion yuan, a year-on-year decrease of 15.2%, while net profit attributable to shareholders was 420 million yuan, an increase of 22.4% [1]. - The gross margin for H1 2024 was 11.5%, up 2.8 percentage points year-on-year, with domestic and overseas gross margins at 10.3% and 12.5%, respectively [1]. - The company’s operating cash flow showed a net outflow of 1.56 billion yuan in H1 2024, an increase in outflow of 730 million yuan compared to the previous year [1]. Future Earnings Projections - The company is projected to achieve net profits of 930 million yuan, 1.05 billion yuan, and 1.15 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 22%, 13%, and 9% [2][3]. - Earnings per share (EPS) are expected to be 0.65 yuan, 0.73 yuan, and 0.80 yuan for the same years [2][3]. Valuation Metrics - The current price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are projected to be 8.1, 7.2, and 6.6, respectively [3][4]. - The company’s return on equity (ROE) is expected to improve to 11.0% in 2024 and further to 11.5% by 2026 [3].