Core Viewpoint - The steel sector is experiencing significant declines, with major companies like Ansteel, Maanshan Steel, and Chongqing Steel seeing drops in stock prices due to a weak balance of low inventory, low prices, low demand, and high supply elasticity [1] Group 1: Market Performance - Ansteel shares fell by 5.33% to HKD 2.13, Maanshan Steel by 5.28% to HKD 2.69, and Chongqing Steel by 4.23% to HKD 1.36 [1] - The current market is characterized by low inventory, low prices, low demand, and high supply elasticity, indicating a weak balance [1] Group 2: Industry Analysis - CITIC Construction Investment predicts a significant drop in steel prices by 2025, driven by supply-demand mismatches, weakened cost support, and delayed policy effects [1] - The industry is facing challenges in improving profitability, with the need to prevent internal competition and enhance prices being a key task for the upcoming year [1] Group 3: Profitability and Recovery - China Galaxy Securities reports that leading steel companies are showing high growth in net profits, with some turning losses into profits, indicating a recovery in the overall profitability of the steel industry [1] - The supply-side reforms are leading to a concentration of capacity among quality leading companies, suggesting a shift in the industry landscape [1] Group 4: Future Outlook - Guotai Junan anticipates that steel demand may gradually bottom out, and the prolonged period of industry losses is leading to market-driven supply adjustments [1] - If supply-side policies are implemented, the speed of supply contraction may accelerate, facilitating a quicker recovery in the industry [1]

Core Viewpoint - Ansteel Co., Ltd. experienced a decline in stock price, with a current trading price of 2.73 CNY per share, reflecting a 2.15% drop on November 18. The company has seen a year-to-date stock price increase of 13.75% but has faced recent declines over the past five and twenty trading days [1]. Financial Performance - For the period from January to September 2025, Ansteel reported a revenue of 73.092 billion CNY, representing a year-on-year decrease of 7.78%. The net profit attributable to shareholders was -2.040 billion CNY, showing a significant year-on-year increase of 59.87% [2]. Shareholder Information - As of September 30, 2025, Ansteel had 95,700 shareholders, a decrease of 0.45% from the previous period. The average circulating shares per shareholder remained at 0 [2]. - The company has distributed a total of 21.437 billion CNY in dividends since its A-share listing, with a cumulative payout of 6.392 million CNY over the past three years [3]. Institutional Holdings - Among the top ten circulating shareholders as of September 30, 2025, Hong Kong Central Clearing Limited held 77.9972 million shares, an increase of 25.3221 million shares from the previous period. The Southern CSI 500 ETF held 34.9382 million shares, a decrease of 0.8428 million shares, while the Guotai CSI Steel ETF entered as a new shareholder with 24.0346 million shares [3].

Group 1: Solar and Energy Stocks - Solar stocks showed recovery with New Special Energy (01799) up 4.99%, Flat Glass (06865) up 3.25%, Xinyi Solar (00968) up 3.75%, and GCL-Poly Energy (03800) up 2.27%. The China Photovoltaic Industry Association stated that rumors about a polysilicon storage platform were false, aiming to malign the industry [1][2] - Energy storage concept stocks rose against the trend, with Longpan Technology (02465) up 17.09%, Ruipu Lanjun (00666) up 15.2%, and Zhongxin Innovation (03931) up 9.22%. Lithium hexafluorophosphate prices have surged, with some market quotes reaching 150,000 yuan/ton, doubling since mid-October [1] Group 2: Oil and Gas Stocks - Oil stocks collectively declined, with CNOOC (00883) down 3.14%, CNOOC Services (02883) down 2.98%, PetroChina (00857) down 2.09%, and Sinopec (00386) down 1.79%. OPEC's monthly report indicated a slight oversupply in the oil market by 2026, contrasting previous predictions of sustained demand [2] Group 3: Steel and Mining Stocks - Steel stocks saw a midday surge, with Maanshan Iron & Steel (00323) up 7.09%, Ansteel (00347) up 2.26%, and Chongqing Iron & Steel (01053) up 2.13%. The Simandou project in Guinea, which has the potential to become the fifth-largest mine globally, has commenced production [2] Group 4: Airline and Transportation Stocks - Southern Airlines (01055) rose over 3.9% after reporting a 2.2% year-on-year increase in revenue for the first three quarters of 2025 [2] Group 5: Biotechnology and Pharmaceuticals - Gilead Sciences (01672) increased over 5.7% as it announced the clinical development of new drugs ASC36 and ASC35 [3] - Zai Lab (02509) rose over 8.4% after announcing plans for continued related transactions for the commercialization of QX001S from 2026 to 2028 [4] Group 6: Gold Stocks - Gold stocks collectively rose, with China Gold International (02099) up 5.99%, Jihai Resources (02489) up 7.3%, and Lingbao Gold (03330) up 4.47%. Gold prices have surpassed $4,100 and are testing the $4,200 resistance level [4] Group 7: US Market Movements - Major tech stocks in the US fell, with Meta Platforms (META.US) down over 2.8%, Tesla (TSLA.US) down over 2%, and Amazon (AMZN.US) down over 1.9% [5] - Eli Lilly (LLY.US) rose 2.95%, reaching a historical high, after announcing a deal to lower GLP-1 drug prices to $245 per month, potentially opening a new market of 30 million people [5] - The US airline service sector saw gains, with United Airlines (UAL.US) up 5.29% and American Airlines (AAL.US) up 3.62%, as the government is expected to reopen soon [5] Group 8: Nuclear Energy Stocks - US nuclear energy stocks rose, with Oklo (OKLO.US) up 6.67% as the government plans to finance new nuclear power plants to meet the energy demands of AI development [6] Group 9: Company-Specific Developments - On Holding (ONON.US) surged over 17.9% after reporting Q3 net sales of 794.4 million Swiss francs, exceeding market expectations [7] - AMD (AMD.US) rose 9% as it projected a 35% annual growth rate in revenue over the next three to five years, driven by AI chip demand [7]

Core Viewpoint - Hong Kong steel stocks experienced a rapid increase in share prices during the midday session, indicating a positive market sentiment towards the steel industry [1] Company Summaries - Maanshan Iron & Steel Company Limited (00323.HK) saw a significant rise of 7.84%, reaching HKD 2.89 [1] - Ansteel Company Limited (00347.HK) increased by 3.17%, trading at HKD 2.28 [1] - Chongqing Iron & Steel Company Limited (01053.HK) rose by 2.13%, with shares priced at HKD 1.44 [1]

Group 1 - Steel stocks experienced a rapid increase, with Maanshan Iron & Steel Co., Ltd. rising by 7.84% to HKD 2.89, Angang Steel Company Limited increasing by 3.17% to HKD 2.28, and Chongqing Iron & Steel Company Limited up by 2.13% to HKD 1.44 [1] - The commencement ceremony for the Simandou project was held at the port of Maribaya in Guinea, which is noted to be the largest iron ore reserve globally and has the potential to become the fifth-largest mine [1] - According to Dongfang Securities, the launch of the Simandou project may significantly disrupt the monopoly of the four major mines on iron ore supply, leading to a substantial change in the iron ore supply landscape [1] Group 2 - Guotai Junan Securities released a report indicating that steel demand is expected to gradually bottom out; despite prolonged industry losses, market-driven supply adjustments are beginning to emerge [1] - The firm anticipates a gradual recovery in the fundamentals of the steel industry, and if supply policies are implemented, the speed of supply contraction may accelerate, leading to a quicker industry upturn [1]

Group 1 - Steel stocks experienced a rapid increase, with Maanshan Iron & Steel Co., Ltd. rising by 7.84% to HKD 2.89, Angang Steel Company Limited increasing by 3.17% to HKD 2.28, and Chongqing Iron & Steel Company Limited up by 2.13% to HKD 1.44 [1] - The launch ceremony for the Simandou project took place at the port of Maribaya in Guinea, which is noted to be the largest iron ore reserve globally and has the potential to become the fifth-largest mine [1] - Dongfang Securities indicated that the production of the Simandou project could significantly disrupt the monopoly of the four major mines on iron ore supply, leading to a substantial change in the iron ore supply landscape [1] Group 2 - Guotai Junan Securities released a report suggesting that steel demand is expected to gradually bottom out; despite prolonged industry losses, market-driven supply adjustments are beginning to emerge [1] - The report anticipates a gradual recovery in the fundamentals of the steel industry, with a faster contraction of supply expected if supply policies are implemented [1] - The progress of the industry's upward movement is likely to accelerate with the implementation of supply policies [1]

Market Overview - Hong Kong stocks showed a positive trend, closing up 0.85% as bulls took control, indicating a lack of negative news is perceived as positive [1] - The U.S. House of Representatives is expected to vote on a compromise plan to end the longest government shutdown in U.S. history, which could restore funding to government agencies [1] - The ADP private sector employment report for October showed a decrease of 45,000 jobs, the largest drop in two and a half years, suggesting a cooling labor market and increasing expectations for a Fed rate cut in December [1] Sector Performance - The banking sector saw a rebound with major banks like Agricultural Bank of China reaching new highs, driven by long-term investments from insurance funds and public funds [1] - Consumer sectors are gaining traction, with companies like "Hushang Auntie" seeing a significant increase of nearly 29%, indicating a recovery in consumer sentiment [2] - Retail sales in Hong Kong are projected to rise by 4% year-on-year in October, benefiting retail rental stocks [3] Company Highlights - Baijie Shenzhou reported a 44.2% increase in total revenue for the first three quarters, driven by sales growth of its self-developed products [3] - Xiaomi announced a significant sales figure of over 29 billion yuan during the Double 11 shopping festival, indicating strong consumer demand [4] - The Ximangdu iron ore project, with reserves exceeding 4.4 billion tons, has commenced production, potentially altering the global iron ore supply landscape and benefiting companies like Maanshan Iron & Steel [5] Industry Developments - The Chinese commercial aerospace sector is set to advance with the upcoming maiden flight of the reusable rocket "Zhuque-3," which aims to reduce launch costs significantly [6] - The sportswear manufacturing sector is expected to see a recovery in demand, with Shenzhou International projecting a 15.3% increase in revenue for the first half of 2025 [7] - The company has expanded its overseas production capacity, with 53% of its garment output coming from international facilities, indicating a strategic shift towards globalization [8]

Core Viewpoint - Hong Kong steel stocks experienced a rapid increase in afternoon trading, indicating positive market sentiment in the steel industry [1] Company Summaries - Maanshan Iron & Steel Company (00323.HK) saw a rise of 5.38%, trading at 2.74 HKD [1] - Chongqing Iron & Steel Company (01053.HK) increased by 2.88%, with shares priced at 1.43 HKD [1] - Ansteel Company (00347.HK) rose by 1.83%, reaching a price of 2.22 HKD [1]

Core Viewpoint - The steel sector has experienced a significant improvement in profitability during the third quarter, with key companies showing notable stock price increases. Group 1: Stock Performance - Maanshan Iron & Steel Co., Ltd. (00323) rose by 5.38%, reaching HKD 2.74 [1] - Chongqing Iron & Steel Co., Ltd. (601005) increased by 2.88%, reaching HKD 1.43 [1] - Ansteel Company Limited (000898) (00347) saw a rise of 1.83%, reaching HKD 2.22 [1] Group 2: Industry Profitability - According to Mysteel, the profitability rate of steel mills increased from 59% at the end of June to 64% by the end of August [1] - In September, steel prices did not rise as much as coking coal prices, leading to a decline in profitability rates, with an average of 62% for the third quarter, up 4.5 percentage points from the second quarter [1] - Longjiang Securities estimates that the net profit per ton for the steel industry in Q3 2025 will be 92 CNY, an increase of 14 CNY per ton compared to the previous quarter, placing it at the 68th percentile since 2021 [1] Group 3: Future Outlook - Longjiang Securities anticipates that the profit margin for iron ore will be significantly greater than that for coking coal in 2026, with the commencement of the Ximangdu project potentially providing opportunities [1] - The report indicates that the expectation of reduced production among steel companies remains unfulfilled, as high-frequency data shows insufficient willingness to cut production [1] - The industry is expected to see a sustained realization of supply-side contraction logic under differentiated production restrictions and graded management in 2026 [1]

Core Viewpoint - The steel sector has experienced a significant improvement in profitability during the third quarter, with a notable increase in profit margins for steel mills compared to previous quarters [1] Industry Summary - Steel stocks saw a rapid increase in share prices, with Maanshan Iron & Steel Co. rising by 5.38% to HKD 2.74, Chongqing Iron & Steel Co. increasing by 2.88% to HKD 1.43, and Ansteel Co. gaining 1.83% to HKD 2.22 [1] - According to Mysteel's statistics, the profitability rate of steel mills rose from 59% at the end of June to 64% by the end of August, although it declined in September due to steel prices not keeping pace with coking coal prices [1] - The average profitability rate for steel mills in the third quarter was 62%, which is an increase of 4.5 percentage points compared to the second quarter [1] - Longjiang Securities projects that the net profit per ton for the steel industry will reach CNY 92 in Q3 2025, reflecting a quarter-on-quarter increase of CNY 14 per ton, positioning it at the 68th percentile since 2021 [1] Future Outlook - Longjiang Securities anticipates that the profit margin for iron ore will have greater potential for reduction compared to coking coal, with the commissioning of the Ximangdu project in 2026 expected to provide opportunities for growth [1] - The report indicates that the expectation of reduced internal competition in the third quarter remains largely speculative, as steel companies show limited willingness to cut production based on high-frequency molten iron data [1] - The industry is expected to see a sustained realization of supply-side contraction logic under differentiated production restrictions and graded management in 2026 [1]