Core Viewpoint - Jiu Li Special Materials experienced a stock price decline of 2.01% on November 14, with a current price of 25.85 CNY per share and a total market capitalization of 25.26 billion CNY [1] Financial Performance - For the period from January to September 2025, Jiu Li Special Materials achieved a revenue of 9.747 billion CNY, representing a year-on-year growth of 36.45% [2] - The net profit attributable to shareholders for the same period was 1.262 billion CNY, reflecting a year-on-year increase of 20.73% [2] Shareholder Information - As of September 30, 2025, the number of shareholders increased by 34.16% to 27,600, while the average circulating shares per person decreased by 25.46% to 34,604 shares [2] - The company has distributed a total of 3.468 billion CNY in dividends since its A-share listing, with 1.802 billion CNY distributed in the last three years [3] Stock Trading Activity - On November 14, the net outflow of main funds was 12.9762 million CNY, with large orders accounting for 23.00% of purchases and 28.87% of sales [1] - Year-to-date, the stock price has increased by 15.05%, with a recent decline of 1.07% over the last five trading days [1] Business Overview - Jiu Li Special Materials, established on January 8, 2004, and listed on December 11, 2009, specializes in the research, production, and sales of industrial stainless steel pipes and special alloy materials [1] - The revenue composition includes seamless pipes (37.97%), composite pipes (33.57%), welded pipes (13.44%), alloy materials (6.25%), and other products (5.54%) [1]

Market Overview - The special steel sector increased by 0.36% on November 12, with Fangda Special Steel leading the gains [1] - The Shanghai Composite Index closed at 4000.14, down 0.07%, while the Shenzhen Component Index closed at 13240.62, down 0.36% [1] Stock Performance - Fangda Special Steel (600507) closed at 6.32, up 2.43% with a trading volume of 428,500 shares and a turnover of 268 million yuan [1] - CITIC Special Steel (000708) closed at 15.61, up 1.36% with a trading volume of 194,900 shares and a turnover of 304 million yuan [1] - Other notable performances include: - Xianglou New Materials (301160) at 60.74, up 1.01% [1] - Taiyuan Iron & Steel (000825) at 4.35, up 0.69% [1] - Jiao Jin Co. (603995) at 18.85, up 0.27% [1] - Decliners included: - Xining Special Steel (600117) at 3.18, down 0.31% [1] - Shagang Group (002075) at 5.77, down 0.52% [1] - Jiu Li Special Materials (002318) at 26.31, down 0.72% [1] Capital Flow - The special steel sector experienced a net outflow of 199 million yuan from institutional investors, while retail investors saw a net inflow of 124 million yuan [2] - The capital flow for individual stocks showed: - Xianglou New Materials had a net inflow of 8.07% from institutional investors [3] - Fangda Special Steel had a net outflow of 2.71% from institutional investors [3] - Jiu Li Special Materials had a net outflow of 3.43% from institutional investors [3]

Core Insights - The report indicates a transitional phase in the cyclical consumption stage, with technology growth entering a left-side layout period [3] - The steel industry is experiencing a significant shift in the global iron ore supply-demand landscape due to the commissioning of major projects [3] Industry Strategy - The steel sector is set to benefit from the official commissioning of the West Mangdu Iron Mine on November 11, 2025, which will enhance China's position from a mere buyer to a significant resource owner, allowing for more active participation in international pricing negotiations [7] - The project includes a 670-kilometer railway and deep-water port, with the first shipment of approximately 200,000 tons of high-grade iron ore expected to be sent to China in mid-November [7] - This strategic move is anticipated to inject strong momentum into the long-term healthy development of China's steel industry across multiple dimensions, including resource security and economic benefits [7] Theme Strategy - The humanoid robot sector is experiencing a significant adjustment, with multiple catalysts emerging, suggesting it may enter a left-side layout period [4] - Key upcoming events include the 2025 China Robot Industry Development Conference and the 2025 Shenzhen High-Tech Fair, which will showcase advancements in robotics [4] - Notable company developments include the release of a new humanoid robot by Xiaopeng and Tesla's updates on the mass production of its Optimus robot [4] Market Strategy - The market is currently in a narrow range of fluctuations, with significant sector rotation and differentiation, necessitating a focus on timing for trading to achieve excess returns [7] - The cyclical and consumer sectors have shown strong performance recently, confirming previous strategies that indicated a transition and rebalancing phase [7] - The technology sector, after undergoing adjustments, is now viewed as entering a left-side layout period, with a focus on internal high-low switching [7]

Core Insights - The special steel sector experienced a slight increase of 0.15% on November 11, with Xianglou New Materials leading the gains [1] - The Shanghai Composite Index closed at 4002.76, down 0.39%, while the Shenzhen Component Index closed at 13289.0, down 1.03% [1] Special Steel Sector Performance - Xianglou New Materials (301160) closed at 60.13, up 2.96% with a trading volume of 21,600 lots and a transaction value of 129 million [1] - Fangda Special Steel (600507) closed at 6.17, up 0.65% with a trading volume of 225,800 lots and a transaction value of 139 million [1] - Xining Special Steel (600117) closed at 3.19, up 0.63% with a trading volume of 301,500 lots and a transaction value of 95.73 million [1] - Other notable performances include Shengde Yantai (300881) up 0.62%, CITIC Special Steel (000708) up 0.20%, and Fushun Special Steel (665009) up 0.18% [1] Capital Flow Analysis - The special steel sector saw a net outflow of 86.77 million from main funds, while retail funds experienced a net inflow of 62.80 million [2][3] - Notable net inflows from retail investors were observed in Xianglou New Materials (730.63 million) and Shengde Yantai (667.25 million) [3] - Conversely, significant net outflows from main funds were recorded for CITIC Special Steel (-1,667.42 million) and Fangda Special Steel (-1,334.32 million) [3]

Core Insights - The steel industry is expected to gradually recover as demand stabilizes and supply-side adjustments begin to take effect, with potential acceleration if supply policies are implemented [3][4]. Group 1: Steel Market Overview - Steel prices have decreased, with total inventory also declining. Last week, the average price of rebar in Shanghai fell by 10 CNY/ton to 3200 CNY/ton, a decrease of 0.31% [8][12]. - Apparent consumption of five major steel products was 8.6693 million tons, down 5.4% week-on-week and 1.22% year-on-year [21][26]. - The production of steel decreased to 8.5674 million tons, a week-on-week decline of 18.55 thousand tons [31]. Group 2: Supply and Demand Dynamics - The operating rate of blast furnaces among 247 steel mills increased to 83.13%, up 1.38 percentage points week-on-week, while electric furnace operating rates decreased [27][29]. - The profitability of steel companies has declined, with an average profit margin of 39.83%, down 5.19 percentage points week-on-week [27][30]. - The report anticipates that the demand for steel will stabilize, particularly as the negative impact from the real estate sector diminishes, while infrastructure and manufacturing demand is expected to grow steadily [3][4]. Group 3: Raw Material Prices - Iron ore prices have decreased, with spot prices dropping by 26 CNY/ton to 774 CNY/ton, a decline of 3.25% [46]. - The inventory of iron ore at ports increased to 14898.83 million tons, up 2.45% week-on-week [49]. - The total shipment volume of iron ore from Brazil and Australia has decreased, indicating a tightening supply [50][53]. Group 4: Investment Recommendations - The report maintains an "overweight" rating for the steel sector, highlighting that companies with product structure and cost advantages will benefit from the industry's transition towards higher quality development [4]. - Key recommendations include Baosteel, Hualing Steel, and Shougang, which are noted for their technological and structural advantages [4].

Market Overview - The special steel sector increased by 0.38% on November 10, with Changbao Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 4018.6, up 0.53%, while the Shenzhen Component Index closed at 13427.61, up 0.18% [1] Stock Performance - Changbao Co., Ltd. (002478) closed at 8.85, up 4.12% with a trading volume of 202.77 thousand shares and a transaction value of 1.807 billion [1] - Jiuli Special Materials (002318) closed at 26.57, up 1.68% with a trading volume of 21.50 thousand shares and a transaction value of 570 million [1] - CITIC Special Steel (000708) closed at 15.37, up 0.92% with a trading volume of 18.02 thousand shares and a transaction value of 277 million [1] - Other notable performances include Jinzhou Pipeline (002443) at 8.31, up 0.12%, and Xining Special Steel (600117) at 3.17, unchanged [1] Capital Flow - The special steel sector experienced a net outflow of 27.4959 million from institutional investors and 17.9619 million from retail investors, while individual investors saw a net inflow of 45.4578 million [2] - The capital flow for specific stocks indicates varying trends, with Jiuli Special Materials seeing a net inflow of 70.0669 million from institutional investors [3] Individual Stock Analysis - Changbao Co., Ltd. had a net inflow of 800.56 thousand from retail investors, despite a net outflow of 1.78287 million from speculative funds [3] - CITIC Special Steel experienced a net outflow of 1.58266 million from institutional investors, while retail investors contributed a net inflow of 911.29 thousand [3] - Xining Special Steel faced a net outflow of 729.07 thousand from institutional investors, but retail investors contributed a net inflow of 882.76 thousand [3]

Investment Rating - The report maintains a "Positive" investment rating for the non-ferrous and steel industry in China [6]. Core Viewpoints - The report emphasizes the importance of addressing overseas electricity shortages with Chinese solutions, particularly in the context of rising industrial electricity costs due to increasing energy prices in major countries [9][14]. - It highlights the potential for significant growth in the electrolytic aluminum sector driven by export demand, as overseas power supply issues lead to production cuts [14]. - The report also points out investment opportunities in the special steel sector, particularly related to advancements in nuclear fusion technology [15]. - The lithium carbonate sector is expected to benefit from a surge in overseas energy storage demand, with prices across the supply chain showing signs of recovery [16]. Summary by Sections 1. Non-Ferrous Metals - The report suggests that electrolytic aluminum, special steel, and lithium carbonate are primarily driven by domestic demand, but it presents a contrasting view that focuses on overseas electricity shortages as a growth opportunity [9][13]. - The electrolytic aluminum sector is poised for a revaluation due to strong production cut expectations stemming from overseas electricity shortages [14]. - The special steel sector is highlighted for its potential growth linked to nuclear fusion advancements, with significant demand expected for materials that can withstand extreme conditions [15]. - The lithium carbonate sector is experiencing a price rebound, with recent contracts indicating a positive outlook for the entire supply chain [16]. 2. Steel Industry - The steel industry is facing short-term profitability pressures, with slight declines in iron and steel production noted [17][19]. - Inventory levels for both social and steel mill stocks are decreasing, indicating a tightening supply [24]. - The report notes a general decline in steel prices, with various product categories experiencing price drops [34]. - Cost pressures are evident, with mixed trends in raw material prices impacting profitability across different steel production processes [27][30]. 3. New Energy Metals - The report indicates a significant year-on-year increase in lithium carbonate production, reflecting a robust supply response to market demand [39]. - The demand for new energy vehicles remains strong, with production and sales figures showing substantial growth [43]. - Price trends for lithium and nickel are mixed, with lithium prices experiencing a notable decline while cobalt prices have seen increases [48][50].

Core Insights - The nuclear power sector is expected to experience significant growth, with global nuclear power generation reaching a near ten-year high in 2024 and projected to double by 2050, surpassing 900 million kilowatts in installed capacity [1] Industry Overview - Multiple international agencies have raised their nuclear energy development forecasts for four consecutive years, indicating strong future demand for nuclear power [1] - As of November 7, nuclear concept stocks have shown robust performance, with an average increase of 63.07% year-to-date, significantly outperforming the Shanghai Composite Index [1] Valuation Metrics - Among the nuclear concept stocks, 13 have a rolling price-to-earnings (P/E) ratio below 30, with companies like Huaneng International, Shun'an Environment, and Jiuli Special Materials having P/E ratios under 15 [1] - Five of these stocks have a price-to-book (P/B) ratio below 2, including China National Nuclear Power, China General Nuclear Power, Dongfang Electric, China Nuclear Engineering, and Huaneng International [1] Financial Performance - Specific financial metrics for selected low P/E nuclear concept stocks include: - Huaneng International: Market value of 90.73 billion, P/E of 8.89, and a projected net profit of 14.841 billion for the first three quarters of 2025, up 42.52% year-on-year [2] - Shun'an Environment: Market value of 1.4767 billion, P/E of 12.68, with a projected net profit of 769 million, up 18.46% year-on-year [2] - Jiuli Special Materials: Market value of 2.5533 billion, P/E of 14.96, with a projected net profit of 1.262 billion, up 20.73% year-on-year [2]

Investment Rating - The report maintains a "Buy" rating for the steel industry, indicating a positive outlook for selected companies [7]. Core Insights - The steel industry is currently experiencing a recovery from undervaluation, with significant potential for price and profit improvement as supply-side policies are implemented [2]. - The report highlights that the average daily pig iron production has decreased, while inventory reduction has slowed down, indicating a tightening supply [3][26]. - Demand for steel products has shown a decline in apparent consumption, particularly in rebar and hot-rolled coil, reflecting a temporary market adjustment [43]. - The report emphasizes the continued high growth rate of steel exports, with a net export increase of 7.6% year-on-year, suggesting robust international demand [4][14]. - The report identifies key companies that are expected to benefit from the current market conditions, including Hualing Steel, Nanjing Steel, Baosteel, and New Steel [2][10]. Summary by Sections Supply - Daily pig iron production has decreased by 21,000 tons to 2.342 million tons, with a reduction in production from long-process steelmaking [13]. - The capacity utilization rate for 247 domestic steel mills is at 87.8%, down 0.8 percentage points from the previous week [19]. Inventory - Total steel inventory has seen a reduced decline, with a week-on-week drop of 0.7%, indicating a tighter market [26]. - The social inventory of five major steel products stands at 10.75 million tons, down 0.2% week-on-week but up 29.8% year-on-year [28]. Demand - Apparent consumption of five major steel products has decreased by 5.4% week-on-week, with rebar consumption down by 5.9% [54]. - Weekly average transaction volume for construction steel has fallen to 96,000 tons, a decrease of 7.6% [44]. Raw Materials - Iron ore prices have declined, with the Platts 62% iron ore price index at $102.1 per ton, down 5.0% week-on-week [64]. - The report notes an increase in port iron ore inventory, suggesting a potential oversupply situation [53]. Prices and Profits - The comprehensive steel price index has decreased by 1.1% week-on-week, with current rebar prices in Beijing at 3,190 RMB per ton [76]. - The report indicates that the immediate gross profit margins for long-process rebar and hot-rolled coil remain relatively stable despite price fluctuations [76].

Investment Rating - The report maintains a "Buy" rating for several steel companies, including Hualing Steel, Baosteel, Nanjing Steel, and others [3][4]. Core Views - The steel industry is gradually entering the off-season, with differentiated performance among various products. Steel production and apparent consumption are both declining, indicating seasonal characteristics. Inventory reduction rates are similar to previous years, but absolute inventory levels remain high. Steel mill profits are at low levels, and a seasonal downward trend is expected in both supply and demand [3][4]. - The report highlights that the production structure is changing, with some steel mills shifting from rebar production to plate production due to weak real estate demand. This has led to an increase in plate production and a decrease in rebar production, with supply changes outpacing demand changes in the short term [3][4]. Summary by Sections Price Trends - As of November 7, 2025, steel prices have decreased, with rebar priced at 3200 CNY/ton, down 10 CNY/ton from the previous week. Hot-rolled and cold-rolled prices also saw declines of 60 CNY/ton and 50 CNY/ton, respectively [1][10]. Production and Inventory - Total steel production for the week was 8.57 million tons, a decrease of 185,500 tons from the previous week. Social inventory decreased by 20,400 tons to 10.7383 million tons, while steel mill inventory fell by 80,900 tons [2][3]. Profitability - Steel mill profits have declined, with rebar, hot-rolled, and cold-rolled margins decreasing by 7 CNY/ton, 38 CNY/ton, and 10 CNY/ton, respectively. Electric arc furnace steel margins also fell by 14 CNY/ton [1][3]. Investment Recommendations - The report recommends several stocks, including Hualing Steel, Baosteel, Nanjing Steel, and others, highlighting their potential for recovery in profitability due to capacity regulation and precise management [3][4].