Baoshan Iron & Steel (600019) Q3 2024 earnings summary

Executive summary

• Maintained leading domestic industry position with total profit of RMB 19.9 billion in Q3 and RMB 82.3 billion for the first three quarters, outperforming peers.

• Enhanced product differentiation and brand value; export sales reached a record high, with oriented silicon steel sales up 27.5% year-over-year.

• Achieved cost reductions of RMB 7.43 billion in the first three quarters, surpassing annual targets.

• Advanced digital transformation and AI applications, with multiple industrial AI models deployed to support high-quality growth.

• Promoted green, low-carbon development, with two bases recognized as industry energy efficiency benchmarks and top ESG ranking in the Yangtze River Delta.

Financial highlights

• Q3 revenue was RMB 79.61 billion, down 6.53% year-over-year; first three quarters revenue was RMB 242.86 billion, down 4.77%.

• Q3 net profit attributable to shareholders was RMB 1.34 billion, down 64.77% year-over-year; first three quarters net profit was RMB 5.88 billion, down 29.56%.

• Q3 basic EPS was RMB 0.06, down 66.67% year-over-year; first three quarters basic EPS was RMB 0.27, down 28.95%.

• Operating cash flow for the first three quarters was RMB 15.64 billion, up 17.98% year-over-year.

• Total assets at quarter-end were RMB 367.18 billion, down 2.36% from the start of the year.

Outlook and guidance

• Domestic GDP growth slowed and steel industry faced weak supply and demand; steel prices fell 9.8% quarter-on-quarter, but market expectations improved at quarter-end.

• Focus remains on high-quality development, internal coordination, product profitability, and cost reduction.