NUE Latest Report

Performance of the Current Financial Report

Based on the provided data, Newco Steel (NUE) had a total operating revenue of RMB7.076 billion as of December 31, 2024, a year-on-year decrease of approximately 8.16% from RMB7.705 billion as of December 31, 2023. This change indicates a weakening in the company's sales performance in 2024, mainly affected by market conditions, intensified competition, and other factors.

Key Data from the Financial Report

1. Newco Steel's total operating revenue in 2024 was RMB7.076 billion, a year-on-year decrease of 8.16%.

2. The Company's estimated revenue for the first three quarters of 2024 is US$23.658 billion, a year-on-year decrease of 12.41%.

3. The estimated net profit in 2024 is US$1.74 billion, a year-on-year decrease of 53.47%.

4. The overall steel prices have continued to decline, leading to overall losses in the steel industry.

5. Newco Steel's capital expenditure is expected to reach US$3.2 billion, mainly for the expansion of production capacity.

Peer Comparison

1. Industry-wide Analysis: In 2024, the steel industry as a whole faced a situation of weak demand and falling prices, leading to a decrease in the operating revenue of most companies, reflecting the fluctuations of the economic cycle and changes in market demand for steel products.

2. Peer Evaluation Analysis: Compared with other companies in the same industry, Newco Steel's decrease in operating revenue is relatively significant. Further comparison of the revenue changes of competitors is needed to assess its market position and competitiveness.

Summary

Newco Steel's decrease in operating revenue in 2024 is mainly affected by factors such as weak market demand, price fluctuations, intensified competition, and rising production costs. Although short-term performance is under pressure, it is expected to benefit from the gradual recovery of market demand and opportunities brought by policy changes in the future.

Opportunities

1. The US steel demand is expected to gradually recover, which Newco Steel can benefit from.

2. Domestic steel tax incentives and higher import steel tariffs will help enhance the company's market competitiveness.

3. The Company's capital expenditure plan will promote the expansion of its production capacity, helping to consolidate its market position.

4. The promotion of environmental and low-carbon policies may bring new development opportunities for the industry, and Newco Steel, as the industry leader, is expected to gain more market share.

Risks

1. Continued weak market demand may lead to further decreases in operating revenue.

2. Falling steel prices will squeeze the industry's profit margin, affecting the Company's profit level.

3. The performance and market share changes of competitors may exacerbate competition within the industry, affecting the Company's market position.

4. Uncertainty in policy changes may have a negative impact on the Company's operating environment.