SINOSTEEL ENTEC(000928) 天风证券·2025-04-24 03:23Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6][17]. Core Views - The company achieved a revenue of 17.65 billion in 2024, a decrease of 33.1% year-on-year, while the net profit attributable to the parent company increased by 9.7% to 0.835 billion [1][5]. - The gross profit margin improved significantly, contributing to a notable increase in profitability despite revenue pressure [1][2]. - The company plans to distribute a cash dividend of 0.43 billion in 2024, with a dividend payout ratio of 51% and a dividend yield of 4.72%, enhancing investment returns [1]. Financial Performance - In Q1 2025, the company reported a revenue of 3.52 billion, down 28.21% year-on-year, but the net profit attributable to the parent company rose by 7.78% to 0.232 billion [1]. - The gross margin for the company in Q1 2025 was 13.7%, an increase of 3.15 percentage points year-on-year, indicating continuous improvement in profitability [2]. - The company’s net profit margin for 2024 was 4.95%, up 1.91 percentage points year-on-year, with a net cash flow from operations of 1.5 billion, reflecting strong cash flow performance [4]. Order and International Expansion - The company signed new contracts worth 19.67 billion in 2024, a year-on-year increase of 2.12%, with significant growth in overseas projects [3]. - The company has made substantial progress in international projects, particularly in Algeria, with the successful launch of major steel production facilities [3]. Cost Management - The company’s expense ratio for 2024 was 6.71%, an increase of 2.7 percentage points year-on-year, indicating challenges in effectively managing costs [4]. - Despite the increase in expense ratios, the overall profitability metrics improved due to enhanced gross margins [2][4].