Fangda Special Steel Technology (600507) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 6.11 billion, down 3.01% year-over-year; YTD revenue was RMB 18.86 billion, down 4.20% year-over-year.

• Net profit attributable to shareholders in Q3 was RMB 26.14 million, a 91.34% decrease year-over-year; YTD net profit was RMB 188.99 million, down 67.79%.

• Gross margin and profitability declined due to a sharper drop in steel product prices compared to raw material costs.

Financial highlights

• Q3 basic and diluted EPS were RMB 0.01, both down over 91% year-over-year; YTD EPS was RMB 0.08.

• Net cash flow from operating activities for the first nine months was RMB 1.45 billion, down 36.34% year-over-year.

• Total assets at quarter-end were RMB 22.03 billion, up 11.41% from year-end 2023.

• Owner’s equity attributable to shareholders was RMB 9.35 billion, up 1.38% from year-end 2023.

Outlook and guidance

• Management attributes profit decline to unfavorable market conditions and expects continued pressure if steel prices remain weak.