Baoshan Iron & Steel (600019) Q4 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.

• Gross margin was 5.5%, with a decrease in both revenue and profit due to lower sales volume and prices amid a challenging steel market.

• Maintained industry-leading position in China, with ROE at the 89th percentile of the sector.

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

Financial highlights

• Operating income: RMB 322.1 billion, down 6.5% year-over-year.

• Net profit attributable to shareholders: RMB 7.36 billion, down 38.4% year-over-year.

• Basic EPS: RMB 0.34, down 37% year-over-year.

• Gross margin: 5.5%, down 0.8 percentage points year-over-year.

• Cash flow from operations: RMB 27.7 billion, up 9.6% year-over-year.

• Asset-liability ratio: 39.7%, improved by 1.8 percentage points.

Outlook and guidance

• 2025 revenue target: RMB 312 billion; planned steel output: 52.61 million tons.

• Focus on high-end, intelligent, green, efficient, and international development.

• Export sales ratio to exceed 10%; cost reduction target of RMB 2.9 billion.

• Continued investment in green and digital transformation, with fixed asset investment budgeted at RMB 23.91 billion.