宝钢股份：季度业绩走弱，盈利维持韧性

Investment Rating - The investment rating for the company is "Buy" [5] Core Views - The company's quarterly performance has weakened, but profitability remains resilient, with a net profit of 58.82 billion yuan for the first three quarters of 2024, a year-on-year decrease of 29.56% [1] - The company is focusing on optimizing its product structure and deepening its international strategy, with a significant increase in the sales of oriented silicon steel by 27.5% [2] - Cost reduction efforts have exceeded annual targets, achieving a total cost reduction of 7.43 billion yuan in the first three quarters of 2024 [2] - The company is expected to improve its profitability due to its leading position in the industry and ongoing product upgrades, despite a weak steel demand impacting overall industry profitability [3] Financial Performance Summary - For the first three quarters of 2024, the company reported a revenue of 242.86 billion yuan, a year-on-year decrease of 4.77% [1] - The net profit for Q3 2024 was 13.38 billion yuan, down 64.77% year-on-year and 48.92% quarter-on-quarter [1] - The company's sales gross margin for Q3 2024 was 4.30%, reflecting the overall decline in industry profitability [1] - The projected net profit for 2024-2026 is estimated at 89.9 billion, 100.3 billion, and 117.2 billion yuan respectively [3] Product and Market Strategy - The company produced 38.7 million tons of steel in the first three quarters of 2024, a slight decrease of 0.7% year-on-year, while steel sales were 38.5 million tons, down 1.2% [2] - The company has adjusted its investment in the Saudi thick plate company from approximately 3 billion yuan to about 7.23 billion yuan, indicating a deepening of its international strategy [2] - The company aims to enhance its main business profitability through continuous optimization of product structure and resource allocation [2] Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 0.11 yuan per share for the first half of 2024, which accounts for 52.13% of the net profit attributable to shareholders [2] - The high dividend payout ratio is expected to be maintained as capital expenditures are anticipated to decrease following the completion of low-emission modifications [2]