Baosteel(600019) 广发证券·2024-04-28 01:32Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 8.17 CNY per share based on a 15x PE valuation for 2024 [2][4]. Core Insights - The company's net profit for 2023 decreased by 2% year-on-year, while Q1 2024 showed a 4% increase, aligning with expectations. The total revenue for 2023 was 344.5 billion CNY, with a net profit of 11.9 billion CNY, reflecting a year-on-year change of -6.3% and -2%, respectively [1][2]. - The company demonstrated significant operational resilience through cost reduction and volume growth, achieving a 4% increase in steel production and sales in 2023. Cost reductions amounted to 5 billion CNY in 2023 and 2.2 billion CNY in Q1 2024, supporting performance above industry averages [1][2]. - The steel market is entering a balanced supply-demand phase, with expectations for moderate recovery driven by macroeconomic policies. As of April 26, 2024, domestic steel mills reported a profit margin of 51%, indicating improved industry profitability despite ongoing cost pressures [1][2]. Financial Summary - The company's revenue and net profit for 2023 were 344.5 billion CNY and 11.9 billion CNY, respectively, with projected EPS for 2023-2025 at 0.54, 0.62, and 0.68 CNY per share [1][4]. - The PE ratios for 2024, 2025, and 2026 are projected to be 13, 11, and 10, respectively, indicating a potential for valuation re-rating based on the company's ability to withstand cyclical fluctuations and maintain stable dividends [1][4]. - The report highlights a dividend payout ratio of 56.77% for 2023, reflecting the company's commitment to shareholder returns [1].