Baoshan Iron & Steel (600019) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB 322.1 billion, down 6.5% year-over-year; net profit attributable to shareholders was RMB 7.36 billion, down 38.4% year-over-year.

• Operating cash flow increased 9.6% to RMB 27.7 billion; total assets at year-end were RMB 364.9 billion, down 3% from prior year.

• The company maintained industry-leading profitability and continued to lead in domestic steel sector ROE.

• Significant progress in green transformation, digitalization, and international expansion, including the establishment of a Saudi JV.

Financial highlights

• Gross margin for steel manufacturing was 3.4%, down 0.7 percentage points year-over-year.

• Basic EPS was RMB 0.34, down 37% year-over-year; weighted average ROE was 3.65%, down 2.36 percentage points.

• R&D investment reached RMB 3.78 billion, 7.77% of revenue.

• Net cash from operating activities was RMB 27.7 billion, up 9.6% year-over-year.

• Asset-liability ratio improved to 39.7%, down 1.8 percentage points.

Outlook and guidance

• 2025 targets: sales of 32.59 million tons of “2+2+N” products, export ratio above 10%, and cost reduction of at least RMB 2.9 billion.

• 2025 revenue target is RMB 312 billion, with planned steel output of 52.61 million tons.

• Focus on high-end, intelligent, green, efficient, and international development; continued investment in green and digital transformation.