Investment Rating - The report maintains a "Buy" rating for key companies in the steel industry, including Xining Special Steel, Nanjing Steel, Hualing Steel, and Baosteel [8]. Core Insights - The steel industry is experiencing a recovery in profits, with black metal smelting and rolling industries turning profitable, achieving a total profit of 973.4 billion yuan from January to September, compared to a loss of 341 billion yuan in the same period last year [4][13]. - The report highlights the importance of supply-side policies and structural adjustments in the industry, indicating that the long-term fundamentals of steel are expected to improve due to demand recovery and supply-side reforms [4][13]. - The report emphasizes the financial attributes of metals, particularly precious metals, as a counter to the weakening credit of dominant currencies, suggesting a shift in wealth storage methods [2]. Supply Analysis - Daily molten iron production has decreased by 35,000 tons to 2.363 million tons, with the capacity utilization rate of blast furnaces at 88.6%, down 1.3 percentage points week-on-week [3][12][18]. - The total inventory of five major steel products has decreased by 2.6% week-on-week, with steel mill inventories declining more than social inventories [24][26]. Demand Analysis - Apparent consumption of five major steel products has increased by 2.6% week-on-week, with rebar demand growing more than hot-rolled demand [40][50]. - The average weekly transaction volume of construction steel has increased by 3.7% [42]. Price and Profit Analysis - The comprehensive steel price index has risen by 1.1% week-on-week, indicating a strengthening of steel prices due to improving industry fundamentals [72]. - The current spot prices for rebar in Beijing and Shanghai are 3,200 yuan/ton and 3,210 yuan/ton, respectively, reflecting a week-on-week increase of 3.9% and 0.6% [72]. Key Companies - The report recommends several companies for investment, including Hualing Steel, Nanjing Steel, Baosteel, and Xining Special Steel, all of which are positioned in the low valuation area with strong safety margins [2][4][8].

Core Viewpoint - New Steel Co., Ltd. is a leading regional player in the steel industry, focusing on high-end steel products and has a strong R&D capability in the electrical steel sector [1] Group 1: Business Performance - In Q3 2025, New Steel's revenue was 27.225 billion, ranking 13th among 17 companies in the industry, with Baosteel leading at 232.436 billion [2] - The net profit for the same period was 373 million, placing the company 8th in the industry, with Baosteel at 8.908 billion [2] Group 2: Financial Ratios - As of Q3 2025, New Steel's debt-to-asset ratio was 44.41%, lower than the industry average of 63.37% and down from 49.09% the previous year [3] - The gross profit margin was 3.96%, an improvement from -0.50% year-on-year but still below the industry average of 5.68% [3] Group 3: Management and Shareholder Information - The chairman, Liu Jianrong, has extensive experience in steel production and management, while the general manager, Liao Peng, saw an increase in salary to 1.0961 million, up 83,800 from the previous year [4] - As of September 30, 2025, the number of A-share shareholders decreased by 11.78% to 38,200, while the average number of shares held per shareholder increased by 13.35% to 82,400 [5] Group 4: Market Outlook and Predictions - The company is expected to see significant improvements in profitability, with projected net profits of 680 million, 950 million, and 1.17 billion for 2025, 2026, and 2027 respectively [5] - High-end product sales have increased significantly, with hot-rolled high-end products up 97.6%, and other premium products also showing strong growth [6]

Key Insights - The report highlights significant changes in fund allocation during Q3 2025, with a notable increase in equity positions and a shift towards AI and new energy sectors, while consumer sectors faced reductions [8][9][10] - The performance of various industries shows a mixed trend, with coal and machinery sectors experiencing fluctuations in revenue and profit margins, while technology and communication sectors demonstrate robust growth [24][26][29][35][40] Fund Allocation Insights - Fund sizes increased significantly, with a 20% rise in active fund products, driven by a strong A-share market performance, particularly a 20% increase in the CSI 800 index [8] - There is a reinforced trend of reducing mainboard allocations while increasing investments in emerging sectors, with the STAR Market allocations reaching new highs [9] - AI and new energy sectors are leading the allocation trends, while consumer sectors like home appliances and automobiles are seeing widespread reductions [9][10] Industry Performance Insights - The coal industry is facing challenges, with companies like Pingmei and Lu'an reporting significant declines in revenue and profit due to structural changes in sales, although Q4 is expected to see recovery due to rising coal prices [35][44] - The machinery sector, represented by companies like Rongzhi Rixin, is experiencing substantial growth, with a 13.9% increase in revenue and an impressive 890% rise in net profit year-on-year [26] - The communication sector, particularly companies like New Yisheng, reported a 152.5% year-on-year revenue increase, driven by strong demand for optical communication products [24] Company-Specific Insights - Bull Group's revenue decline is narrowing, with healthy cash flow, and the company is expected to maintain a "buy" rating based on future profit projections [20] - Hikvision is showing signs of recovery with stable profits and cash flow, supported by advancements in AI technology [47] - Huabao New Energy is facing short-term profit pressure due to tariffs but maintains strong growth potential with a projected increase in net profit over the next few years [29]

Market Overview - A-shares experienced a decline in the afternoon session, with the Shanghai Composite Index falling below the 4000-point mark again, closing down 0.73% at 3986.9 points, while the Shenzhen Component Index dropped 1.16% to 13532.13 points, and the ChiNext Index fell 1.84% to 3263.02 points [1] - The total trading volume in the Shanghai and Shenzhen markets reached 246.46 billion yuan, an increase of 17.37 billion yuan compared to the previous day [1] Lithium Industry - The lithium battery sector saw a strong rally, with stocks like Penghui Energy hitting a 20% limit up, and Tianhua New Energy rising nearly 15% [2] - Tianqi Lithium reported Q3 revenue of 2.565 billion yuan, down 29.66% year-on-year, but net profit increased by 119.26% to 95.49 million yuan [2] - Ganfeng Lithium announced Q3 revenue of 6.249 billion yuan, up 44.10% year-on-year, with net profit soaring 364.02% to 555 million yuan [2] - Analysts attribute the volatility in lithium carbonate prices to supply constraints, explosive demand growth, and resource price transmission to downstream sectors [3] Quantum Technology - The quantum technology sector showed renewed activity, with stocks like Guandun Quantum hitting a new high of over 600 yuan [4] - The Chinese government has emphasized the importance of quantum technology in its 15th Five-Year Plan, indicating future policy support [7] - Analysts suggest that the commercialization of quantum computing, communication, and precision measurement is accelerating, presenting investment opportunities in the quantum information sector [7] Steel Industry - The steel sector maintained strength, with overall gains exceeding 1%, and companies like Anyang Steel and Erdos hitting the limit up [4] - Analysts from Dongfang Securities predict that the ongoing supply reduction trend will help stabilize steel prices and improve corporate profitability [5] - The steel industry is expected to enter a phase of high-quality, high-return development, enhancing dividend capabilities for steel companies [6]

Group 1 - The steel sector saw an increase of 1.27% on October 30, with Anyang Iron & Steel leading the gains [1] - The Shanghai Composite Index closed at 3986.9, down 0.73%, while the Shenzhen Component Index closed at 13532.13, down 1.16% [1] - Anyang Iron & Steel's stock price rose by 10.08%, closing at 2.62, with a trading volume of 1.4087 million shares and a transaction value of 357 million yuan [1] Group 2 - The main capital inflow in the steel sector was 57.76 million yuan, while retail investors saw a net inflow of 26.11 million yuan [2] - The stock performance of various companies in the steel sector showed mixed results, with some companies experiencing declines [2] - The trading data indicates that Anyang Iron & Steel had a net inflow of 85.4751 million yuan from main capital, despite a net outflow from retail and speculative capital [3]

Core Points - The Shanghai Composite Index is at 4011.41 points, slightly down by 0.12%, with a total trading volume of 202.95 billion yuan [1] - A total of 340 A-shares have surpassed their five-day moving average, with notable stocks showing significant deviation rates [1] Group 1: Stock Performance - Wald (688028) has the highest deviation rate at 12.41%, with a daily increase of 19.28% and a turnover rate of 10.93% [1] - HeXin Instruments (688622) follows with a deviation rate of 11.02%, increasing by 14.07% today [1] - Blue Shield Optoelectronics (300862) shows a deviation rate of 10.39% with a daily increase of 14.60% [1] Group 2: Other Notable Stocks - Huifeng Diamond (920725) has a deviation rate of 8.78% and increased by 12.04% [1] - Anyang Steel (600569) shows a 10.08% increase with a deviation rate of 7.73% [1] - Rongke Technology (300290) increased by 9.85% with a deviation rate of 7.52% [1]

Group 1 - Major Mining Company reached the daily limit increase in stock price [1] - Fangda Special Steel rose over 9% [1] - Other companies such as Erdos, New Steel, and Liugang also experienced stock price increases [1]

Core Viewpoint - The A-share market experienced a narrow fluctuation on October 30, 2023, with the steel sector showing significant gains, while several previously popular stocks faced adjustments [1][4][11]. Market Performance - The A-share market saw the Shanghai Composite Index fluctuating above 4000 points, with the North China 50 Index rising over 2% during the session, following a previous trading day where it surged by 8.41%, marking one of its best performances of the year [4]. - The steel sector was a highlight, with companies like Anyang Iron & Steel reaching the daily limit, and others such as Fangda Special Steel and New Steel Co. also showing strong gains [5]. Sector Analysis - The coal sector led the market with a rise exceeding 1.4%, driven by increasing prices of coking coal and coke, with coking coal futures rising over 3% and coke futures increasing by more than 2% [7]. - Other sectors such as electrical equipment, non-ferrous metals, transportation, and home appliances also showed notable gains [8]. - In contrast, sectors like telecommunications, comprehensive services, electronics, and building materials faced declines [9]. Conceptual Trends - Lithium mining concepts were among the top gainers, with the sector rising over 2%. Notable stocks included XWANDA, which surged by over 14%, and Dazhong Mining, which hit the daily limit [9][10]. - Other conceptual sectors like quantum technology, nickel metals, and remote work also performed well in the market [10].

Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Views - The company has shown significant improvement in quarterly profitability, with a net profit of 2.49 billion yuan in Q3 2025, a year-on-year increase of 149.46% and a quarter-on-quarter increase of 152.43% [2]. - The company has successfully turned around from a net loss of 5.79 billion yuan in the same period last year to a net profit of 3.6 billion yuan for the first three quarters of 2025 [1][3]. - The strategic focus on high-end products has led to an increase in the sales of premium steel varieties, with hot-rolled high-end products increasing by 97.6% [3]. Financial Performance - For the first three quarters of 2025, the company reported total revenue of 27.225 billion yuan, a year-on-year decrease of 12.68% [1]. - The average sales gross margin for the quarters from Q4 2024 to Q3 2025 is projected to improve, with figures of 5.18%, 3.06%, 3.42%, and 5.27% respectively [2]. - The company’s net profit for 2025 is expected to reach 675 million yuan, with a significant growth rate of 1,959.3% year-on-year [5]. Market Position and Strategy - The company has exited low-end trading businesses and is focusing on developing high-value-added products, establishing itself as a global leader in premium silicon steel and high-quality thick plates [3]. - The company’s major shareholder, New Steel Group, has shown confidence by increasing its stake in the company, acquiring approximately 40.32 million shares, which is about 1.27% of the total share capital [3]. Future Outlook - The report forecasts that the company's net profit will continue to improve, with estimates of 680 million yuan, 950 million yuan, and 1.17 billion yuan for the years 2025 to 2027 respectively [3]. - The valuation of the company is expected to have significant recovery potential, with a projected market value of around 17.2 billion yuan at the mid-point of the valuation range [3].

Group 1 - New Steel Co., Ltd. experienced a stock price increase of 5.49%, reaching 4.23 CNY per share, with a trading volume of 134 million CNY and a turnover rate of 1.01%, resulting in a total market capitalization of 13.462 billion CNY [1] - The company, established on October 10, 2003, and listed on December 25, 1996, is located in Xinyu City, Jiangxi Province, and primarily engages in steel smelting, steel rolling, and the manufacturing and sales of steel products [1] - The main revenue composition of New Steel includes 89.63% from steel and steel strand sales, while other revenues account for 10.37% [1] Group 2 - Among the top ten circulating shareholders of New Steel, E Fund's ETF, E Fund CSI Dividend ETF (515180), entered the list in the third quarter, holding 19.8634 million shares, which is 0.63% of the circulating shares, with an estimated floating profit of approximately 4.37 million CNY [2] - E Fund CSI Dividend ETF (515180) was established on November 26, 2019, with a latest scale of 9.051 billion CNY, yielding 6.16% this year, ranking 3948 out of 4216 in its category, and 9.86% over the past year, ranking 3388 out of 3885 [2] Group 3 - The fund managers of E Fund CSI Dividend ETF (515180) are Lin Weibin and Song Zhaoxian, with Lin having a cumulative tenure of 12 years and 242 days, managing a total fund size of 122.692 billion CNY, achieving a best fund return of 81.77% during his tenure [3] - Song Zhaoxian has a cumulative tenure of 5 years and 57 days, managing a total fund size of 54.426 billion CNY, with a best fund return of 83.91% during his tenure [3]