Core Viewpoint - The company experienced a significant decline in revenue in the first half of the year, but showed improvement in profitability and cash flow management, with expectations for future revenue recovery driven by domestic and international contracts [2][4]. Financial Performance - The company achieved a revenue of 6.745 billion yuan in the first half, a year-on-year decrease of 25.66% [1]. - In Q2, the revenue was 3.226 billion yuan, down 22.67% year-on-year [2]. - The net profit attributable to shareholders was 424 million yuan, a year-on-year increase of 1.11%, while the net profit after deducting non-recurring items was 422 million yuan, up 13.01% [1]. Profitability - The overall gross margin improved to 15.12% in the first half, an increase of 3.66 percentage points year-on-year, with Q2 gross margin at 16.62%, up 4.14 percentage points [2]. - The company effectively controlled its period expenses, with a period expense ratio of 5.95%, an increase of 1.19 percentage points year-on-year [2]. Cash Flow - The net cash outflow from operating activities in the first half was 2.912 billion yuan, an increase in outflow of 1.355 billion yuan year-on-year, with a cash collection ratio of 69.74%, down 13.88 percentage points [3]. - In Q2, the net cash outflow from operating activities was 1.276 billion yuan, with a cash collection ratio of 77.87%, down 57.76 percentage points year-on-year [3]. Contracting Activity - The company secured new contracts worth 6.31 billion yuan in the first half, a year-on-year decline of 35.0%, with domestic new contracts at 2.444 billion yuan, up 53.8%, and international new contracts at 3.864 billion yuan, down 52.4% [3]. - Domestic new contracts showed signs of stabilization, while international contracts faced challenges due to slow project execution [3]. Future Outlook - The company is expected to benefit from potential order increases due to geopolitical developments, particularly if a ceasefire occurs in the Russia-Ukraine conflict [4]. - The company has a healthy balance sheet with 6.86 billion yuan in cash and 1.05 billion yuan in interest-bearing debt, resulting in a net cash position of approximately 5.81 billion yuan [4]. - The company has maintained a high dividend payout ratio over the past three years, with expectations to continue this trend, projecting a dividend yield of about 4.7% for 2025 [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company achieved a revenue of 6.745 billion yuan in the first half of 2025, a year-on-year decrease of 25.66%. However, the net profit attributable to shareholders was 424 million yuan, reflecting a year-on-year increase of 1.11%. The net profit after deducting non-recurring items was 422 million yuan, showing a year-on-year growth of 13.01% [2][6] Summary by Sections Revenue Performance - The company faced significant revenue pressure, with a total revenue of 6.745 billion yuan in the first half of 2025, down 25.66% year-on-year. In Q2 alone, revenue was 3.226 billion yuan, a decrease of 22.67% year-on-year. The domestic steel industry has been in a downturn since 2022, leading to a notable decline in domestic operations and new contracts [12] Profitability - The company's profitability showed improvement, with a comprehensive gross margin of 15.12% in the first half of 2025, up 3.66 percentage points year-on-year. In Q2, the gross margin was 16.62%, an increase of 4.14 percentage points year-on-year. The period expense ratio was 5.95%, up 1.19 percentage points year-on-year [12] Cash Flow - Operating cash flow faced pressure, with a net outflow of 2.912 billion yuan in the first half of 2025, an increase of 1.355 billion yuan year-on-year. The cash collection ratio was 69.74%, down 13.88 percentage points year-on-year [12] New Contracts - The company signed new contracts worth 6.31 billion yuan in the first half of 2025, a year-on-year decline of 35.0%. Domestic new contracts totaled 2.444 billion yuan, up 53.8% year-on-year, while overseas new contracts were 3.864 billion yuan, down 52.4% year-on-year [12] Future Outlook - The overseas market remains promising, with potential catalysts expected in 2025. The company has a healthy balance sheet with 6.86 billion yuan in cash and 1.05 billion yuan in interest-bearing debt, resulting in a net cash position of approximately 5.81 billion yuan [12]

Investment Rating - The report maintains an "Optimistic" rating for the construction industry [2][4]. Core Insights - The construction industry faced pressure on revenue and profit in H1 2025, with total revenue of 3.75 trillion, down 5.7% year-on-year, and net profit of 87.5 billion, down 6.5% year-on-year [2][7]. - The industry experienced a relative stability in gross margin and net margin, with a gross margin of 9.9% and a net margin of 2.33% in H1 2025 [8][19]. - Operating cash flow showed improvement, with a net cash flow of -477.4 billion, a reduction in outflow by 15.1 billion year-on-year [3][12]. - The industry’s return on equity (ROE) decreased by 0.31 percentage points to 2.50% in H1 2025, indicating pressure on profitability [16][27]. Summary by Sections Financial Overview - In H1 2025, major listed companies in the construction industry reported revenues of 3.75 trillion, a decrease of 5.7% year-on-year, and net profits of 87.5 billion, down 6.5% year-on-year [2][7]. - Quarterly revenues for Q1 and Q2 were 1.84 trillion and 1.91 trillion, respectively, with year-on-year declines of 6.2% and 5.2% [2][7]. Profitability Analysis - The industry maintained a gross margin of 9.9%, a slight decrease of 0.2 percentage points year-on-year, and a net margin of 2.33%, down 0.02 percentage points [8][19]. - The ROE for the industry decreased to 2.50%, reflecting the impact of reduced investment and increased costs [16][27]. Cash Flow Improvement - The operating cash flow net amount was -477.4 billion, showing an improvement with a reduction in cash outflow by 15.1 billion year-on-year [3][12]. - The cash collection ratio improved to 103% in Q1 and 87% in Q2, with year-on-year changes of +0.85 percentage points and +11.65 percentage points, respectively [3][12]. Market Dynamics - The report highlights a shift in focus from growth to quality improvement among state-owned enterprises, with an emphasis on cash flow management and cost control [4][19]. - The construction industry is expected to see a recovery in revenue and cash flow in the second half of 2025, driven by anticipated government investment stimulus [4][19].

Core Insights - As of September 1, a total of 178 stocks in the Shanghai and Shenzhen markets have experienced net financing inflows for five consecutive days or more [1] - The stock with the longest streak of net inflows is Qilu Bank, which has seen net buying for 18 consecutive trading days [1] - Other notable stocks with significant net inflow days include Kosen Technology, China Steel International, Huagong Technology, Aiwai Electronics, Meishuo Technology, Chengdi Xiangjiang, Changxin Bochuang, and Xinmei Shares [1]

Group 1 - A total of 180 stocks in the Shanghai and Shenzhen markets have received net financing inflows for five consecutive days or more as of August 28 [1] - Qilu Bank has the longest streak, with net inflows for 16 consecutive trading days [1] - Other notable stocks with significant net financing inflows include China Steel International, Kosen Technology, Chengdi Xiangjiang, Meishuo Technology, Sinan Navigation, Zhejiang Construction Investment, Huagong Technology, and Wuhan Fangu [1]

Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 7.8 CNY, compared to the current stock price of 6.55 CNY [4]. Core Insights - The company reported a significant improvement in gross and net profit margins, despite a decline in domestic revenue due to pressure in the metallurgical industry. The overseas market showed steady growth [2][3]. - In the first half of 2025, the company achieved operating revenue of 6.745 billion CNY, a year-on-year decrease of 25.66%, while net profit attributable to shareholders was 424 million CNY, a year-on-year increase of 1.11% [1][2]. - The gross profit margin for the first half of 2025 was 15.12%, an increase of 3.66 percentage points year-on-year, indicating improved profitability [3]. Revenue Breakdown - Domestic revenue for the first half of 2025 was 1.760 billion CNY, down 59.88% year-on-year, accounting for 26.09% of total revenue, a decrease of 22.25 percentage points [2]. - Overseas revenue reached 4.985 billion CNY, up 6.36% year-on-year, making up 73.91% of total revenue, an increase of 22.25 percentage points [2]. Profitability Metrics - The company’s sales net profit margin for the first half of 2025 was 6.54%, an increase of 1.70 percentage points year-on-year, although the increase was less than that of the gross profit margin due to higher expense ratios [3]. - The operating cash flow showed a net outflow of 2.912 billion CNY, which was an increase in outflow by 1.355 billion CNY year-on-year [3]. International Expansion - The company signed new contracts worth 6.308 billion CNY in the first half of 2025, with domestic projects accounting for 2.444 billion CNY (up 53.81% year-on-year) and international projects at 3.864 billion CNY (down 52.36% year-on-year) [4]. - The company is actively expanding its international market presence, with notable contracts in Indonesia and ongoing projects in Azerbaijan and Saudi Arabia [4][8]. Financial Forecast - The company’s projected revenues for 2025-2027 are 14.810 billion CNY, 15.829 billion CNY, and 16.821 billion CNY, with year-on-year growth rates of -16.08%, 6.88%, and 6.27% respectively [8]. - Net profit forecasts for the same period are 865 million CNY, 932 million CNY, and 1.004 billion CNY, with year-on-year growth rates of 3.55%, 7.77%, and 7.75% respectively [8].

Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company has shown improved profitability despite a decline in revenue, with a focus on international expansion under the "Belt and Road" initiative [4]. - The company achieved a net profit of 4.24 billion yuan in the first half of 2025, reflecting a year-on-year growth of 1.11% [4]. - The report forecasts a gradual increase in net profit for 2025 to 2027, with expected figures of 8.75 billion yuan, 9.20 billion yuan, and 9.83 billion yuan respectively, indicating growth rates of 4.75%, 5.18%, and 6.79% [4][6]. Financial Performance Summary - **Revenue Forecasts**: - 2024A: 176.47 billion yuan - 2025E: 180.10 billion yuan - 2026E: 188.90 billion yuan - 2027E: 201.20 billion yuan - Revenue growth rates are projected at -33.10%, 2.06%, 4.89%, and 6.51% respectively [6]. - **Net Profit Forecasts**: - 2024A: 8.35 billion yuan - 2025E: 8.75 billion yuan - 2026E: 9.20 billion yuan - 2027E: 9.83 billion yuan - Corresponding profit growth rates are 9.69%, 4.75%, 5.18%, and 6.79% [6]. - **Gross Margin**: - The gross margin for 2025 is projected at 12.24%, down from 14.50% in 2024 [6]. - **Earnings Per Share (EPS)**: - EPS is expected to increase from 0.58 yuan in 2024 to 0.68 yuan in 2027 [6]. - **Price-to-Earnings Ratio (P/E)**: - The P/E ratio is forecasted to decrease from 11.25 in 2024 to 9.56 in 2027, indicating a potentially more attractive valuation over time [6]. Operational Highlights - The company reported a significant increase in overseas revenue, which grew by 6.36% year-on-year, while domestic revenue saw a decline of 59.88% [4]. - The company ranked 77th among the "Top 250 International Contractors" globally in 2024, marking its best performance to date [4].

Core Viewpoint - China Galaxy Securities has issued a buy rating for China Steel International, highlighting the company's profitability improvement and growth driven by the Belt and Road Initiative [1] Financial Performance - In the first half of 2025, China Steel International reported revenue of 6.745 billion yuan, a year-on-year decrease of 25.66% [2] - Breakdown of revenue shows: - Engineering contracting revenue at 6.316 billion yuan, down 25.09% - Product sales revenue at 306 million yuan, down 38.13% - Service revenue at 108 million yuan, down 17.64% - Domestic business revenue was 1.76 billion yuan, down 59.88%, while overseas business revenue was 4.985 billion yuan, up 6.36% [2] - The company achieved a net profit attributable to shareholders of 424 million yuan, a year-on-year increase of 1.11% [2] - The net cash flow from operating activities was -2.912 billion yuan, a decrease of 1.356 billion yuan year-on-year, primarily due to reduced revenue and delayed payments from clients [2] Profitability and Contracts - The company's gross margin improved to 15.12%, an increase of 3.66 percentage points year-on-year [3] - Domestic engineering gross margin was 18.9%, up 8.58 percentage points, while overseas gross margin was 13.78%, up 1.25 percentage points [3] - The net profit margin was 6.54%, an increase of 1.7 percentage points [3] - New contracts signed totaled 6.308 billion USD, a year-on-year decrease of 34.96% [3] - As of June 2025, the total value of signed but uncompleted contracts was 38.926 billion yuan, with ongoing project amounts at 21.866 billion yuan [3] Strategic Initiatives - The company actively promotes the "Belt and Road" initiative and has achieved a ranking of 77 among the "Top 250 International Contractors" globally in 2024, marking its best historical performance [3] - Strong partnerships with major global companies such as Rio Tinto, ArcelorMittal, Vale, and others have been established, showcasing the company's robust international market expansion capabilities [3] Investment Recommendations - Projected net profits for 2025, 2026, and 2027 are 875 million yuan, 920 million yuan, and 983 million yuan respectively, with year-on-year growth rates of 4.75%, 5.18%, and 6.79% [4] - Corresponding price-to-earnings ratios are estimated at 10.74, 10.21, and 9.56 [4]

Core Viewpoint - The stock of China Steel International has experienced fluctuations, with a recent decline of 2.07% and a total market capitalization of 9.483 billion yuan, while the company has shown a year-to-date stock price increase of 8.88% [1] Financial Performance - For the first half of 2025, China Steel International reported operating revenue of 6.745 billion yuan, a year-on-year decrease of 25.66%, while the net profit attributable to shareholders increased by 1.11% to 424 million yuan [2] - Cumulatively, the company has distributed 2.361 billion yuan in dividends since its A-share listing, with 1.258 billion yuan distributed over the past three years [3] Shareholder Structure - As of June 30, 2025, the number of shareholders for China Steel International was 52,100, a decrease of 4.28% from the previous period, with an average of 27,537 circulating shares per shareholder, an increase of 4.47% [2] - The top circulating shareholder is Hong Kong Central Clearing Limited, holding 21.1535 million shares, an increase of 11.1509 million shares from the previous period [3]

Group 1 - A total of 170 stocks in the Shanghai and Shenzhen markets have experienced net financing inflows for five consecutive days or more as of August 26 [1] - The stocks with the longest consecutive net inflows are Qilu Bank and Guangzhou Development, both achieving 14 consecutive trading days of net inflows [1] - Other notable stocks with significant consecutive net inflows include Lingyi iTech, Zhongyan Technology, Hangjin Technology, Sichuan Changhong, Chengdi Xiangjiang, China Steel International, Meishuo Technology, and Jiu Gui Jiu [1]