Investment Rating - The report maintains an "Overweight" rating for the steel and non-ferrous metal industries [1] Core Viewpoints - The supply-side reform in China is expected to break the deflationary cycle and create investment opportunities in the steel and non-ferrous metal sectors [1][6] - The report emphasizes the importance of "supply constraints" to manage the supply-demand balance and mitigate economic downturn risks [6][12] - The steel industry is facing severe overcapacity, with state-owned enterprises holding a significant market share, which facilitates the implementation of administrative measures to control production [6][28] Summary by Sections 1. Supply-Side Reform and Economic Management - The socialist market economy in China allows for effective macroeconomic control, contrasting with the cyclical issues faced in capitalist economies [12][13] - Historical experiences show that demand stimulus alone is insufficient to resolve deep-seated deflationary pressures [14][15] - The supply-side reform initiated in 2016 has proven successful in stabilizing prices and improving corporate profitability [21][22] 2. Steel Industry Analysis - The steel industry has been in a state of oversupply from 2007 to 2024, with crude steel production increasing from 490 million tons to 1.01 billion tons, while apparent consumption has not kept pace [28][29] - The production capacity utilization rates for rebar and wire rod are expected to decline from around 70% to 50% due to weak real estate demand [33][34] - The concentration of production among state-owned enterprises is high, with central state-owned enterprises accounting for approximately 63% of total production in 2024 [38][39] 3. Investment Recommendations - The report suggests focusing on three categories of investment targets: profit recovery, stable profit with valuation repair, and stable high-dividend stocks [51] - Specific companies recommended for profit recovery include Liugang Co., Taigang Stainless Steel, and Shandong Iron and Steel, with projected annualized PE ratios improving significantly under favorable conditions [51]

Core Viewpoint - The steel industry is experiencing pressure from weak demand and high costs, leading to a focus on policy-driven capacity optimization to alleviate profitability issues [1][5]. Group 1: Market Performance - The Shenyin Wanguo Steel Index has rebounded by 11.86% since June 23, while the Wind All A Index increased by 6.53% during the same period [1]. - In July, the Shenyin Wanguo Steel Index rose by 9.31%, marking the largest monthly increase since October 2024, with 21 stocks in the steel sector rising over 10% [4]. Group 2: Company Earnings Forecasts - Eight steel companies have released their mid-year earnings forecasts, with Shougang Co. expecting a net profit of 642 to 672 million yuan, a year-on-year increase of 62.62% to 70.22% [3]. - Shandong Steel anticipates a net profit of 12.71 million yuan for the first half of the year, a year-on-year increase of 98.1 million yuan [2]. - Fushun Special Steel and Hangang Co. are expected to report losses, with Fushun projecting a loss of 260 to 300 million yuan, a year-on-year decrease of 214.06% to 231.6% [3]. Group 3: Industry Challenges - The steel industry has been in a downward cycle for four years, with approximately 30% of steel companies still reporting losses as of the latest financial reports [5]. - The demand for steel, particularly from the real estate sector, has significantly declined, with demand dropping from 377 million tons in March 2020 to 215 million tons in 2024, a decrease of 42.9% [5]. - The focus on cost reduction has become prevalent among steel companies, with raw material prices significantly impacting profitability [5]. Group 4: Policy and Structural Changes - Recent central government meetings have emphasized the need to eliminate outdated production capacity, strengthening expectations for supply contraction in the steel industry [4][6]. - The current round of "anti-involution" policies aims to optimize supply and demand dynamics, with a focus on differentiated control of production based on efficiency and environmental standards [6].

Investment Rating - The report maintains a "Recommended" rating for the steel industry, suggesting to focus on the bottom repair opportunities in steel stocks [1]. Core Viewpoints - The steel market is currently experiencing a dual weakness in supply and demand during the off-season, but improved market sentiment has led to an increase in steel prices [2][3]. - The overall profitability of the steel industry has improved in the first half of the year due to a significant decline in raw material prices, which has positively impacted steel production costs [3][9]. - The "anti-involution" policy proposed by the Central Financial Committee is expected to enhance market conditions for the steel industry, leading to both valuation and performance recovery in the long term [4][10]. Industry Data Summary Production Data - As of July 11, the production of five major steel products totaled 8.7272 million tons, a week-on-week decrease of 124,000 tons [1]. - The average daily molten iron output from 247 steel enterprises was 2.3981 million tons, down 10,400 tons week-on-week, with a blast furnace capacity utilization rate of 89.9%, a decrease of 0.39 percentage points [1][2]. Consumption Data - The apparent consumption of the five major steel products was 8.7307 million tons, a week-on-week decrease of 121,900 tons [1][2]. - The consumption changes for specific products included a decrease of 33,700 tons for rebar, 29,100 tons for wire rod, and 18,600 tons for hot-rolled products [1]. Inventory Situation - Total steel inventory was reported at 13.3958 million tons, with a slight week-on-week decrease of 3,500 tons [1]. - Social inventory decreased by 21,200 tons to 9.1401 million tons, while steel mill inventory increased by 17,700 tons to 4.2557 million tons [1]. Profitability Data - The average cost of molten iron for 114 steel mills was stable at 2,256 yuan per ton [1]. - As of July 11, the gross profit per ton for high furnace rebar was 196 yuan, hot-rolled sheets 142 yuan, and cold-rolled sheets 31 yuan, with week-on-week increases of 9 yuan, 16 yuan, and 20 yuan respectively [1][3].

Fujian Sansteel Minguang Co., Ltd. 2025 Semi-Annual Performance Forecast [Current Period Performance Forecast](index=1&type=section&id=Current%20Period%20Performance%20Forecast) The company anticipates a turnaround to profitability in the first half of 2025, with net profit attributable to shareholders projected at **CNY 130.68 million**, a **155.78% increase** compared to a **CNY 234.2577 million loss** in the prior year Performance Forecast Summary | Item | Current Period (Jan 1 - Jun 30, 2025) | Prior Period | | :--- | :--- | :--- | | **Net Profit Attributable to Shareholders** | Profit: CNY 130.68 Million (155.78% YoY Growth) | Loss: CNY 234.2577 Million | | **Net Profit Excluding Non-Recurring Items** | Profit: CNY 108.31 Million (139.97% YoY Growth) | Loss: CNY 271.0101 Million | | **Basic Earnings Per Share** | Profit: CNY 0.05/share | Loss: CNY 0.1/share | [Communication with Accounting Firm](index=1&type=section&id=Communication%20with%20Accounting%20Firm) The financial data in this performance forecast is unaudited, but the company has pre-communicated with the accounting firm on relevant matters, with no significant disagreements - The financial data in this performance forecast is unaudited[4](index=4&type=chunk) - The company has pre-communicated with the accounting firm regarding the performance forecast, and there are no significant disagreements[4](index=4&type=chunk) [Explanation of Performance Change](index=1&type=section&id=Explanation%20of%20Performance%20Change) The primary drivers for the turnaround to profitability are the significant decline in raw material prices, coupled with the company's ongoing cost reduction, efficiency improvement, and product structure optimization strategies, which successfully offset the negative market impacts of weak downstream demand and falling steel prices - Market Environment: In the first half of 2025, the steel industry faced challenges including weak downstream demand, sustained high supply, and fluctuating downward steel prices[5](index=5&type=chunk) - Cost-side Benefits: A significant decline in major raw material prices created favorable conditions for the company's profitability improvement[5](index=5&type=chunk) - Company Strategies: The company continuously promoted high-end, intelligent, green, and low-cost strategies, optimized product structure, and deepened full-process cost reduction, ultimately achieving a turnaround to profitability[5](index=5&type=chunk)[6](index=6&type=chunk) [Risk Warning](index=2&type=section&id=Risk%20Warning) The company explicitly states that this performance forecast is a preliminary estimate by the finance department, and the final accurate financial data will be disclosed in the 2025 semi-annual report, advising investors to exercise caution and be aware of investment risks - This performance forecast represents preliminary estimates by the company's finance department and is not final data[7](index=7&type=chunk) - Specific financial data will be detailed in the company's 2025 semi-annual report, and investors are advised to be aware of investment risks[7](index=7&type=chunk)

Core Viewpoint - The company, Sansteel Minmetals Corporation, is expected to report a net profit of 131 million yuan for the period from January 1, 2025, to June 30, 2025, marking a significant recovery from a loss of 234 million yuan in the same period last year, representing a growth of 155.78% [1] Financial Performance - The net profit attributable to shareholders is projected to be 131 million yuan, compared to a loss of 234 million yuan in the previous year, indicating a growth of 155.78% [1] - The net profit after deducting non-recurring gains and losses is expected to be 108 million yuan, a substantial increase from a loss of 271 million yuan year-on-year, reflecting a growth of 139.97% [1] - Basic earnings per share are anticipated to be 0.05 yuan, recovering from a loss of 0.1 yuan per share in the same period last year [1] Strategic Initiatives - The company continues to promote strategies focused on high-end, intelligent, green, and low-cost operations, optimizing product structure and deepening cost reduction across all processes [1] - The successful implementation of these strategies has led to a turnaround from losses to profits in the first half of the year, with year-on-year improvements in operational performance [1]

根据福建省人民政府《关于组建福建省工业控股集团有限公 司的批复》（闽政文〔2025〕107 号）和福建省人民政府国有资 产监督管理委员会（以下简称福建省国资委）《关于组建福建省 工业控股集团有限公司有关股权划转的函》（闽国资函产权〔2025〕 103 号）的要求，组建福建省工业控股集团有限公司（以下简称 省工控集团）作为省管企业，由福建省国资委履行出资人职责， 将福建省国资委直接持有的福建省冶金（控股）有限责任公司（以 下简称福建冶金）80%股权注入省工控集团，福建冶金作为省工 控集团的子企业。福建省国资委将其直接持有的福建冶金 80%股 权无偿划转至省工控集团。 具体内容详见福建三钢闽光股份有限公司（以下简称公司） 在指定信息披露媒体《证券时报》《中国证券报》和巨潮资讯网 （http://www.cninfo.com.cn）的披露的《关于间接控股股东重 组的提示性公告》（公告编号：2025-023）、《关于间接控股股 东股权无偿划转的提示性公告》（公告编号：2025-030）及《收 购报告书》等公告。 证券代码：002110 证券简称：三钢闽光 公告编号：2025-032 福建三钢闽光股份有限公司 关于间接 ...

Core Viewpoint - The special steel sector has shown a significant increase, with a rise of 3.25%, ranking third among concept sectors, driven by strong performances from several stocks [1][2]. Group 1: Sector Performance - As of July 2, the special steel concept saw 31 stocks increase in value, with notable gains from Chongqing Steel, Shengde Xintai, and Sansteel Minguang, which rose by 10.16%, 17.00%, and 8.12% respectively [1][2]. - The sector experienced a net inflow of 684 million yuan from main funds, with 28 stocks receiving net inflows, and six stocks exceeding 50 million yuan in net inflows [2][3]. Group 2: Key Stocks - Huazhong Steel led the net inflow with 151 million yuan, followed by Baogang Co. and Sansteel Minguang with net inflows of 117 million yuan and 71 million yuan respectively [2][3]. - The top three stocks by net inflow ratio were Sansteel Minguang at 20.47%, Huazhong Steel at 15.30%, and Zhongnan Steel at 13.25% [3][4]. Group 3: Declining Stocks - The stocks with the largest declines included Guanda Special Materials, Tunan Co., and Steel Research High-tech, which fell by 2.81%, 1.60%, and 1.20% respectively [1][5].

Industry Overview - The steel sector experienced a significant surge, with the sector's index rising over 3% on July 2, 2023, and several stocks, including Chongqing Steel and Liugang, reaching their daily limit [1] - According to the National Bureau of Statistics, the total profit of the black metal smelting and rolling processing industry in May was 14.77 billion yuan, representing a year-on-year increase of 55.5% and a month-on-month increase of 57% [1] - Despite increasing pressures from anti-dumping measures and tariffs abroad, China's steel exports are expected to grow year-on-year in 2024, indicating the competitiveness of Chinese steel products in the international market [1] - The introduction of the "anti-involution" policy in the steel industry is anticipated to accelerate the recovery of profits in the black smelting sector, addressing the long-standing low capital returns in the midstream black smelting industry [1] Company Performance - Chongqing Steel reported a 64.7% year-on-year increase in net profit excluding non-recurring items in Q1 [2] - Liugang's net profit excluding non-recurring items surged by 710.41% year-on-year in Q1 [2] - Shougang's net profit excluding non-recurring items increased by 1053.27% year-on-year in Q1 [2] - Sansteel Mingguang saw a 154.51% year-on-year growth in net profit excluding non-recurring items in Q1 [3] - Hualing Steel's net profit excluding non-recurring items grew by 39.76% year-on-year in Q1 [2] - Ansteel reported a 65.23% year-on-year increase in net profit excluding non-recurring items in Q1 [3] - Anyang Steel's net profit excluding non-recurring items rose by 101.69% year-on-year in Q1 [3] - Shandong Steel experienced a 97.18% year-on-year increase in net profit excluding non-recurring items in Q1 [3]

Core Viewpoint - Fujian Sansteel Minmetals Co., Ltd. is undergoing a significant acquisition process where Fujian Provincial Industrial Holding Group Co., Ltd. will acquire an 80% stake in Fujian Metallurgy (Holding) Co., Ltd., leading to an indirect control of 58.15% in Sansteel Minmetals, thus becoming its indirect controlling shareholder [1][10][13]. Group 1: Acquisition Details - The acquisition involves a transfer of state-owned equity without compensation, which triggers the obligation for a public offer due to the increase in shareholding above 30% [2][3]. - The acquisition is compliant with the regulations that allow exemption from making a public offer under specific circumstances, such as government-approved asset transfers [5][13]. - The acquisition process has been initiated and requires further registration with government market supervision departments for the change of equity holders [2][11]. Group 2: Acquirer Information - Fujian Provincial Industrial Holding Group Co., Ltd. was established on May 27, 2025, with a registered capital of 800 million yuan and is wholly owned by the Fujian Provincial State-owned Assets Supervision and Administration Commission [6][8]. - The group is involved in various sectors, including steel and iron smelting, new material technology research, and investment activities [6][7]. - As of the report date, the group has not engaged in any actual business operations since its establishment [7][8]. Group 3: Impact on Sansteel Minmetals - The acquisition will not change the direct controlling shareholder or the actual controller of Sansteel Minmetals, which will remain under the control of Sansteel Group and the Fujian Provincial State-owned Assets Supervision and Administration Commission [10][12]. - There are no immediate plans for changes in the main business operations or significant asset disposals within the next 12 months following the acquisition [14][15]. - The independence of Sansteel Minmetals in terms of personnel, assets, finance, and operations will be maintained post-acquisition [17][19]. Group 4: Future Plans - The acquirer has no plans to increase or dispose of shares in Sansteel Minmetals within the next 12 months, and any future changes will be disclosed in accordance with legal requirements [10][14]. - There are no anticipated changes to the board of directors or senior management of Sansteel Minmetals following the acquisition [15][16]. - The acquirer has committed to avoiding any conflicts of interest or unfair transactions with Sansteel Minmetals during its control period [19][20].

福建三钢闽光股份有限公司 收购报告书 签署日期：二〇二五年六月 上市公司名称： 福建三钢闽光股份有限公司 股票上市地点： 深圳证券交易所 股 票 简 称 ： 三钢闽光 股 票 代 码 ： 002110 收 购 人 名 称 ： 福建省工业控股集团有限公司 住所及通讯地址： 福建省福州市晋安区岳峰镇连江北路 1 号福建 机电大厦 收购人声明 本声明所述词语或简称与本报告书"释义"所述词语或简称具有相同的含义。 一、本报告书系收购人依据《中华人民共和国公司法》《中华人民共和国证 券法》《上市公司收购管理办法》《公开发行证券的公司信息披露内容与格式准则 第 16 号——上市公司收购报告书》及其他相关法律、法规、部门规章和规范性 文件的规定编写。 二、依据上述法律、法规、部门规章和规范性文件的规定，本报告书已全面 披露收购人在上市公司中拥有权益的股份情况。截至本报告书签署日，除本报告 书披露的持股信息外，收购人没有通过任何其他方式在上市公司拥有权益。 三、收购人签署本报告书已获得必要的授权和批准，其履行亦不违反收购人 章程或内部规则中的任何条款，或与之相冲突。 四、本次收购尚需在政府市场监督管理部门办理福建省冶金（控股 ...