Market Overview - The special steel sector experienced a decline of 0.3% on November 7, with Shengde Xintai leading the drop [1] - The Shanghai Composite Index closed at 3997.56, down 0.25%, while the Shenzhen Component Index closed at 13404.06, down 0.36% [1] Stock Performance - Notable stock performances included: - Changbao Co., Ltd. (002478) rose by 3.41% to a closing price of 8.50, with a trading volume of 1.93 million shares and a turnover of 1.616 billion [1] - Fushun Special Steel (666009) increased by 1.61% to 5.68, with a trading volume of 870,900 shares [1] - Fangda Special Steel (600507) saw a rise of 1.14% to 6.19, with a turnover of 176 million [1] - Jiu Li Special Materials (002318) fell by 1.62% to 26.13, with a trading volume of 147,300 shares and a turnover of 387 million [1][2] Capital Flow - The special steel sector saw a net outflow of 180 million from main funds, while retail investors contributed a net inflow of 145 million [2] - The capital flow for specific stocks included: - Fushun Special Steel had a main fund net inflow of 58.63 million, but a net outflow from retail investors of 55.44 million [3] - Shengde Xintai experienced a net outflow of 25.61 million from main funds, while retail investors contributed a net inflow of 16.72 million [3] - Jiu Li Special Materials had a net outflow of 2.69 million from main funds, but a net inflow of 33.42 million from retail investors [3]

Market Overview - The special steel sector increased by 2.01% on November 6, with Changbao Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 4007.76, up 0.97%, while the Shenzhen Component Index closed at 13452.42, up 1.73% [1] Stock Performance - Changbao Co., Ltd. (002478) closed at 8.22, up 10.04% with a trading volume of 415,800 shares and a transaction value of 341 million [1] - Jiuli Special Materials (002318) closed at 26.56, up 6.92% with a trading volume of 347,800 shares [1] - Shengde Zhengtai (300881) closed at 40.24, up 4.85% with a trading volume of 78,900 shares [1] - Other notable performances include: - CITIC Special Steel (000708) at 15.31, up 1.46% - Taiyuan Iron & Steel (000825) at 4.36, up 1.40% [1] Capital Flow - The special steel sector saw a net inflow of 15.29 million from institutional investors, while retail investors experienced a net outflow of 16.79 million [2] - The capital flow for key stocks includes: - Changbao Co., Ltd. had a net inflow of 49.96 million from institutional investors [3] - Shengde Zhengtai had a net inflow of 22.08 million from institutional investors [3] - CITIC Special Steel had a net inflow of 12.89 million from institutional investors [3]

Market Performance - The special steel sector increased by 1.71% on November 5, with Changbao Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3969.25, up 0.23%, while the Shenzhen Component Index closed at 13223.56, up 0.37% [1] Stock Performance - Changbao Co., Ltd. (002478) closed at 7.47, up 10.01% with a trading volume of 939,200 shares and a transaction value of 693 million [1] - Other notable performers include: - Shengde Zhengtai (300881) at 38.38, up 4.15% [1] - Fushun Special Steel (600399) at 5.62, up 3.69% [1] - Xining Special Steel (600117) at 3.19, up 2.24% [1] - Taiyuan Iron & Steel (000825) at 4.30, up 1.65% [1] Capital Flow - The special steel sector saw a net inflow of 113 million in main funds, while retail funds experienced a net outflow of 26.03 million [2] - The capital flow for specific stocks includes: - Changbao Co., Ltd. with a net inflow of 63.79 million [3] - Fushun Special Steel with a net inflow of 15.27 million [3] - Taiyuan Iron & Steel with a net inflow of 19.67 million [3]

Investment Rating - The report maintains an investment rating of "Recommended" for the controllable nuclear fusion industry [2][3]. Core Insights - The controllable nuclear fusion industry is accelerating its industrialization process, transitioning from experimental validation to engineering demonstration, with a focus on key suppliers and core component manufacturers that have achieved domestic substitution [2]. - The overall domestic production rate of key nuclear fusion equipment exceeds 96%, with significant advancements in materials performance being a core bottleneck for the feasibility of the technology route [2]. - The industry is entering a new phase characterized by "multiple routes racing + capital resonance," with significant milestones expected, such as the BEST device demonstrating power generation by 2027 [2]. Industry Scale - The industry comprises 118 listed companies, with a total market capitalization of 2114.6 billion and a circulating market capitalization of 1755.9 billion [3]. Performance Metrics - The absolute performance over 1 month, 6 months, and 12 months is 3.2%, 27.0%, and 26.1% respectively, while the relative performance is -0.5%, 2.4%, and 6.9% [5]. Key Companies and Financial Indicators - Notable companies include: - Xibu Superconductor (688122.SH) with a market cap of 50.1 billion and a strong recommendation [7]. - Antai Technology (000969.SZ) also strongly recommended with a market cap of 22.3 billion [7]. - Jiu Li Special Materials (002318.SZ) with a market cap of 25.0 billion and a strong recommendation [7]. - Other companies such as Guoguang Electric (688776.SH), Hezhu Intelligent (603011.SH), and Lianchuang Optoelectronics (600363.SH) are also highlighted, though they do not have specific investment ratings [7]. Material Innovation - Material innovation is identified as the current core bottleneck and breakthrough point for industrialization, with extreme operational environments requiring materials with high melting points, radiation resistance, and thermal fatigue performance [6]. - Domestic companies like Antai Technology and West Superconductor have made breakthroughs in tungsten-copper filters and superconducting materials, overcoming foreign monopolies [6]. Market Opportunities - The industry chain is witnessing incremental market growth across multiple segments, with energy equipment leaders establishing significant layouts and core component manufacturers benefiting from clear development paths [6]. - Companies such as Guoguang Electric, Hezhu Intelligent, and Lianchuang Optoelectronics are positioned to benefit significantly from local support [6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 36.83 CNY [3][6]. Core Insights - The company has shown resilience in profitability, with a projected EPS of 1.66, 1.65, and 1.86 CNY for 2025-2027, reflecting adjustments in sales volume for composite pipe products [3]. - The company is strategically positioned in the nuclear fusion sector, which is expected to contribute to future profit growth, particularly through its involvement in the ITER project and the development of key materials [10]. - The controlling shareholder has increased their stake in the company, indicating confidence in future performance and growth potential [10]. Financial Performance Summary - The company achieved a net profit of approximately 1.26 billion CNY in the first three quarters of 2025, representing a year-on-year growth of 20.73% [10]. - Revenue projections for 2025 are set at 12.05 billion CNY, with a growth rate of 10.4% compared to the previous year [5]. - The gross margin is expected to improve from 26.2% in 2023 to 30.6% by 2027, indicating a positive trend in profitability [5]. Financial Metrics - The company’s net profit attributable to the parent company is forecasted to be 1.623 billion CNY in 2025, with a growth rate of 8.9% [5]. - The projected operating profit for 2025 is 1.935 billion CNY, reflecting a growth of 6.7% [5]. - The company’s market capitalization is approximately 24.94 billion CNY, with a current share price of 25.52 CNY [6].

Group 1 - Zhejiang Fu Holdings and Hailu Heavy Industry experienced a bidding limit increase, indicating strong market interest [1] - Changfu Co., Ltd. saw a rise of over 10%, reflecting positive investor sentiment [1] - Other companies such as Lansi Heavy Equipment, Tianli Composite, Shanghai Electric, Jiuli Special Materials, and China National Machinery General also showed upward movement, suggesting a broader trend in the sector [1]

Investment Rating - The report maintains a "Buy" recommendation for several steel companies, including Hualing Steel, Baosteel, Nanjing Steel, and others [5]. Core Viewpoints - The macroeconomic sentiment is improving, leading to a continuous improvement in steel demand [5]. - Steel prices have shown an upward trend, with specific price increases noted for various steel products as of October 31 [3][10]. - The overall steel production has increased, while total inventory has decreased, indicating a tightening supply-demand balance [4][5]. - Long-term capacity control remains a key theme, with expectations for improved profitability for steel companies under precise regulation [5]. Summary by Sections Price Trends - As of October 31, 2025, the prices for various steel products in Shanghai are as follows: HRB400 rebar at 3210 CNY/ton (up 20 CNY), high line at 3400 CNY/ton (up 30 CNY), hot-rolled at 3340 CNY/ton (up 40 CNY), cold-rolled at 3820 CNY/ton (up 40 CNY), and medium plate at 3380 CNY/ton (unchanged) [3][10]. Profitability - Steel profits have decreased this week, with rebar, hot-rolled, and cold-rolled margins changing by -40 CNY/ton, -2 CNY/ton, and -16 CNY/ton respectively. Electric arc furnace steel margins increased by 6 CNY/ton [3]. Production and Inventory - As of October 31, total steel production reached 8.75 million tons, an increase of 99,700 tons week-on-week. Total inventory decreased by 226,700 tons to 10.7585 million tons [4][5]. - Rebar apparent consumption increased to 2.3219 million tons, up 61,900 tons week-on-week [4]. Investment Recommendations - The report suggests investing in leading steel companies such as Hualing Steel, Baosteel, and Nanjing Steel, as well as companies in the special steel and pipe sectors [5].

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].

Market Overview - The special steel sector experienced a decline of 0.16% on October 31, with Fushun Special Steel leading the drop [1] - The Shanghai Composite Index closed at 3954.79, down 0.81%, while the Shenzhen Component Index closed at 13378.21, down 1.14% [1] Stock Performance - Notable stock performances included: - Xianglou New Material (301160) rose by 3.72% to 64.44 with a trading volume of 38,900 lots and a turnover of 250 million [1] - Jiao Jin Co. (603995) increased by 1.27% to 18.33 with a trading volume of 67,800 lots and a turnover of 124 million [1] - Fushun Special Steel (6653009) fell by 2.06% to 5.24 with a trading volume of 374,300 lots and a turnover of 197 million [2] Capital Flow - The special steel sector saw a net outflow of 72.73 million from main funds, while retail investors contributed a net inflow of 78.74 million [2] - The capital flow for specific stocks showed: - Sand Steel (002075) had a main fund outflow of 30.51 million and a retail inflow of 12.39 million [3] - CITIC Special Steel (000708) experienced a main fund inflow of 15.09 million and a retail outflow of 43.02 million [3]

Market Overview - The special steel sector increased by 1.04% on October 30, with Fangda Special 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] Stock Performance - Fangda Special Steel (600507) closed at 5.90, up 6.50% with a trading volume of 981,700 shares and a transaction value of 586 million [1] - Shengde Yantai (300881) closed at 36.79, up 5.60% with a trading volume of 61,100 shares [1] - Shagang Co. (002075) closed at 5.73, up 1.96% with a trading volume of 781,000 shares [1] - Fushun Special Steel (600399) closed at 5.35, up 1.33% with a trading volume of 528,600 shares [1] - Other notable performances include Taigang Stainless Steel (000825) up 0.95% and CITIC Special Steel (000708) up 0.69% [1] Capital Flow - The special steel sector saw a net inflow of 89.97 million from main funds, while retail funds had a net inflow of 11.61 million [2] - The sector experienced a net outflow of 102 million from speculative funds [2] Individual Stock Capital Flow - Fangda Special Steel had a net inflow of 11.2 million from main funds but a net outflow of 70.55 million from speculative funds [3] - Fushun Special Steel saw a net inflow of 37.35 million from main funds, with a net outflow of 17.73 million from speculative funds [3] - Changbao Co. (002478) had a net inflow of 16.83 million from main funds, while experiencing a net outflow of 13.13 million from speculative funds [3] - CITIC Special Steel had a net inflow of 16.73 million from main funds but a net outflow of 29.45 million from retail investors [3]