Core Viewpoint - The announcement details the conversion status of the company's convertible bonds for the third quarter of 2025, including adjustments to the conversion price and the remaining amount of convertible bonds [1][5]. Group 1: Convertible Bond Issuance - The company issued 18.80 billion RMB worth of convertible bonds, with a total of 1,880,000 bonds at a face value of 100 RMB each, approved by the China Securities Regulatory Commission [1]. - The bonds were listed and began trading on November 2, 2020, under the name "Honglu Convertible Bonds" with the code "128134" [2]. Group 2: Conversion Price Adjustments - The initial conversion price was set at 43.74 RMB per share, which was adjusted to 43.51 RMB on June 9, 2021, and further adjusted to 33.22 RMB on June 15, 2022, following annual profit distributions [3][4]. - As of June 14, 2023, the conversion price was adjusted to 32.96 RMB, and it will be further adjusted to 32.44 RMB on May 21, 2024, and to 32.08 RMB on June 20, 2025 [4][5]. Group 3: Conversion and Share Capital Changes - In the third quarter of 2025, the company experienced a reduction in convertible bond amounts by 123,000 RMB (1,230 bonds), resulting in a conversion of 3,833 shares [5]. - As of September 30, 2025, the remaining amount of convertible bonds was 1,572,621,500 RMB, with 15,726,215 bonds still outstanding [5].

安徽鸿路钢结构（集团）股份有限公司 2025 年第三季度可转换公司债券转股情况的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚 假记载、误导性陈述或重大遗漏。 特别提示： | 证券代码：002541 | 证券简称：鸿路钢构 | 公告编号：2025-058 | | --- | --- | --- | | 债券代码：128134 | 债券简称：鸿路转债 | | （一）可转债发行情况 经中国证券监督管理委员会"证监许可[2020]1983 号"文核准，公司于 2020 年 10 月 9 日公开发行了 1,880 万张可转换公司债券，每张面值为人民币 100 元， 发行总额 18.80 亿元，期限六年。 （二）可转债上市情况 经深圳证券交易所 "深证上[2020]971号"文同意，公司本次公开发行的可 转换公司债券于2020年11月2日在深圳证券交易所挂牌交易，债券简称"鸿路转 债"，债券代码"128134"。 （三）可转债转股情况 根据《安徽鸿路钢结构（集团）股份有限公司公开发行 A 股可转换公司债券 募集说明书》（以下简称"募集说明书"）等有关规定，本次可转债转股期自可 转债发行结束之日（ ...

Summary of Key Points from the Conference Call Industry Overview - The conference call focused on the **Greater China Materials** industry, highlighting a **liquidity-driven bull market** supported by **supply disruptions** that are positively impacting commodity prices. The preference is for **gold, copper, and aluminum equities** in this environment [1][4][10]. Core Insights and Arguments - **Commodity Price Forecasts**: - **Aluminum**: Morgan Stanley forecasts $2,659 per ton for 2H2025, which is 6% higher than consensus. For CY2026, the forecast is $2,750, 8% above consensus [10]. - **Copper**: Expected price of $10,047 per ton for 2H2025, 5% above consensus, and $10,650 for CY2026, 9% above consensus [10]. - **Gold**: Projected at $3,719 per ounce for 2H2025, 9% above consensus, and $4,400 for CY2026, 34% above consensus [10]. - **Steel Demand Drivers**: - The **China Steel Demand Drivers** for 2025 include: - **Machinery**: 30% - **Infrastructure**: 17% - **Residential Property**: 14% - **Auto**: 9% [17][19]. - **Copper Consumption Index**: The **China Copper Consumption Index** indicates a significant reliance on sectors such as **Power (47%)**, **White Goods (15%)**, and **Auto (10%)** [21][22]. - **Aluminum Demand Breakdown**: The **China aluminum demand** is driven by: - **Property**: 22% - **Passenger Vehicles**: 20% - **Grid Investment**: 11% [27]. Additional Important Insights - **Infrastructure Spending**: - Infrastructure spending has partially offset the slowdown in new property starts, with a **5.4% YoY increase** in infrastructure spending for the first eight months of 2025 [35][55]. - **Weekly Shipments**: - Weekly cement and rebar shipments in China are being monitored, indicating trends in demand and supply dynamics [55][56]. - **Market Sentiment**: - The overall sentiment in the materials sector remains **attractive**, with Morgan Stanley's research indicating potential conflicts of interest due to business relationships with covered companies [4][5]. - **Analyst Team**: The call featured insights from a team of equity analysts at Morgan Stanley, emphasizing the importance of their research in investment decision-making [3]. This summary encapsulates the key points discussed in the conference call, providing a comprehensive overview of the Greater China Materials industry and its current market dynamics.

Summary of Conference Call Notes Industry Overview - **Industry**: Building Materials, specifically focusing on cement and related materials in China - **Key Theme**: The anti-involution theme may lead to consolidation and capacity closures in the cement industry due to weak property sales impacting demand for building materials [1][2] Company-Specific Insights Zhuzhou Kibing Group Co Ltd (601636.SS) - **Price Target Change**: Increased from Rmb4.90 to Rmb5.20 - **Rating**: Downgraded to Underweight [1][6] Anhui Honglu Steel Construction (002541.SZ) - **Price Target Change**: Decreased from Rmb20.00 to Rmb19.00 - **Rating**: Downgraded from Overweight to Equal-weight [1][6] Weixing New Building Materials (002372.SZ) - **Price Target Change**: Decreased from Rmb14.40 to Rmb8.60 - **Rating**: Downgraded from Overweight to Underweight [1][6] China Lesso Group Holdings Ltd (2128.HK) - **Price Target Change**: Decreased from HK$4.20 to HK$3.80 - **Rating**: Downgraded from Equal-weight to Underweight [1][6] Market Dynamics - **Cement Supply Controls**: Policies introduced to control overproduction, targeting a reduction of 20-30% of excess capacity. Expected that ~20% of capacity will exit the industry during 2025-26, benefiting industry leaders through consolidation [2] - **Late-Cycle Building Materials**: Anticipated slow recovery due to declining property starts and completions. Some demand support may arise from secondary home sales and government programs [3] - **Float Glass Market**: Prices have slightly rebounded due to joint price increases, but overall demand remains muted, leading to continued downward pressure on prices [4] Financial Estimates and Changes - **Weixing New Building Materials**: - EPS estimates lowered by 24%/20%/25% for 2025-27 due to slow recovery in demand [11] - Revenue growth forecasts for PPR and PE pipes are negative for 2025, with expected declines of 5% and 7% respectively [18][26] - **China Lesso**: EPS estimates lowered by 10% for 2025-27 due to falling raw material prices [11] - **Honglu Steel**: EPS estimates lowered by 39%/28%/29% for 2025-27 due to reduced government subsidies and slowed capacity expansion [11] Risk Factors - **Weixing New Building Materials**: Continuous demand drag from property and infrastructure remains a significant risk. The company has maintained a high payout ratio but faces challenges in revenue growth [20][27] Conclusion - The building materials industry in China is facing significant challenges due to weak property sales and overcapacity. Companies are adjusting their price targets and ratings in response to these market conditions. The outlook for major players like Weixing and Honglu Steel indicates a cautious approach moving forward, with potential consolidation in the cement sector as a response to supply controls.

Core Insights - Honglu Steel Structure experienced a 5.40% increase in stock price on September 30, with a trading volume of 178 million yuan [1] - The company reported a net financing outflow of 873.20 thousand yuan on the same day, with a total financing and securities balance of 37.88 million yuan [1][2] - For the first half of 2025, Honglu Steel Structure achieved a revenue of 10.55 billion yuan, a year-on-year increase of 2.17%, while net profit attributable to shareholders decreased by 32.69% to 288 million yuan [2] Financing and Securities - On September 30, the financing buy amount was 7.13 million yuan, with a financing balance of 36.53 million yuan, representing 0.28% of the market capitalization [1] - The company’s financing balance is below the 10th percentile level over the past year, indicating a low position [1] - In terms of securities lending, 5,200 shares were repaid and 600 shares were sold on September 30, with a remaining balance of 7.05 thousand shares valued at 1.35 million yuan [1] Shareholder Information - As of June 30, the number of shareholders increased by 23.35% to 16,900, while the average circulating shares per person decreased by 18.93% to 29,380 shares [2] - The top ten circulating shareholders include various funds, with notable changes in holdings among them, such as a decrease of 426,800 shares for Zhonggeng Value Pioneer Stock and an increase of 2,115,100 shares for Zhonggeng Value Navigation Mixed [3]

Investment Rating - The report maintains an "Outperform" rating for the construction materials sector, indicating expected performance above the market index by more than 10% over the next 6 to 12 months [5][89]. Core Views - The introduction of the "Stabilization Growth Work Plan for the Building Materials Industry (2025-2026)" aims to enhance profitability and strengthen industry management, promoting a competitive environment [1][3]. - Cement prices have seen a significant increase of 1.5% recently, with expectations for further price hikes as companies strive to meet annual growth targets [2][22]. - The glass market is experiencing a slight price increase, supported by downstream replenishment, although demand acceptance at higher prices remains limited [2][37]. - The fiberglass market shows stable pricing for non-alkali yarn, while electronic yarn remains in high demand, indicating a robust market for high-end products [2][54]. Summary by Sections Cement - National cement prices have risen significantly, with a 1.5% increase noted. Companies are expected to continue pushing for price increases as the fourth quarter approaches [2][22]. - The report anticipates that cement companies will maintain upward price momentum to achieve annual growth targets [2][22]. Glass - Float glass prices have shown a slight increase, supported by replenishment from downstream sectors, although the acceptance of high prices is limited [2][37]. - The photovoltaic glass market has seen a slight decline in demand, with inventory levels increasing, but manufacturers are maintaining stable pricing strategies [2][45]. Fiberglass - The price of non-alkali yarn remains stable, with mainstream prices for 2400tex yarn at 3250-3700 CNY/ton, while electronic yarn prices are stable due to high demand in the high-end market [2][54]. Investment Recommendations - The report suggests focusing on the cement and glass sectors due to stricter supply controls and improving profitability. Recommended companies include Conch Cement, Huaxin Cement, and Qibin Group [3][5]. - For fiberglass, companies like China National Materials and China Jushi are highlighted as beneficiaries of structural demand growth [3][5]. - In the construction sector, a recovery in infrastructure investment is anticipated, with recommendations for companies such as China Railway Construction and China State Construction [3][5].

Core Viewpoint - Prefabricated steel structure buildings are becoming a major trend in the construction industry due to their energy-saving, environmentally friendly, high construction efficiency, and stable quality advantages. The market size for this industry in China is projected to reach approximately 474.5 billion yuan in 2024, accounting for 78.66% of the overall prefabricated building market [1][12]. Overview - The construction industry can be divided into traditional and prefabricated buildings, with prefabricated buildings being assembled from components produced in controlled environments [2][3]. Advantages of Prefabricated Steel Structure Buildings - These buildings allow for standardized production of steel components and associated structures, ensuring quality and reducing labor costs. They also significantly lower dust, noise pollution, and resource consumption, aligning with green building principles [1][12]. Market Policies - The Chinese government has issued various policies to support the development of the prefabricated steel structure industry, creating a favorable environment for growth [8]. Industry Chain - The industry chain includes upstream suppliers of raw materials like steel and fireproof coatings, midstream design and construction services, and downstream markets encompassing industrial, public, commercial, and residential buildings [9][11]. Market Demand - Industrial buildings represent the largest demand segment for prefabricated steel structures, accounting for 54.4% of the market. The steady growth of the industrial sector in China provides significant opportunities for this industry [11]. Competitive Landscape - The market is becoming increasingly competitive, with major players including Jiangsu Jinggong Steel Structure Group, Anhui Honglu Steel Structure Group, and China State Construction Engineering Corporation. These companies leverage strong production capabilities and project experience [13][15]. Revenue Analysis - In 2024, China State Construction and Shanghai Construction Group reported revenues of 21.87 billion yuan and 30.02 billion yuan, respectively, with a smaller proportion of their income derived from prefabricated steel structure businesses compared to Honglu Steel Structure, which generated 20.82 billion yuan from steel structure operations, accounting for 96.76% of its total revenue [15][16]. Future Trends - The demand for prefabricated steel structure buildings is expected to grow due to increasing quality and performance expectations, as well as a focus on green development. The industry is likely to see broader applications in residential, public, and industrial sectors [16].

Core Insights - The professional engineering sector experienced a rise of 2.21% on September 30, with Shikong Technology leading the gains [1] - The Shanghai Composite Index closed at 3882.78, up 0.52%, while the Shenzhen Component Index closed at 13526.51, up 0.35% [1] Stock Performance - Shikong Technology (605178) closed at 35.83, with a gain of 10.01% and a trading volume of 57,600 shares [1] - China Zhongzhi (601618) also saw a significant increase of 10.00%, closing at 3.85 with a trading volume of 4,899,700 shares [1] - Other notable performers included Roman Co. (605289) with a 6.11% increase, and Honglu Steel Structure (002541) with a 5.40% increase [1] Market Capital Flow - The professional engineering sector saw a net inflow of 409 million yuan from institutional investors, while retail investors experienced a net outflow of 262 million yuan [2] - The main stocks with significant net inflows included China Zhongzhi with 426 million yuan and Roman Co. with 77.27 million yuan [3] - Conversely, retail investors showed a net outflow from stocks like China Zhongzhi and Roman Co., indicating a shift in investment behavior [3]

Core Viewpoint - Honglu Steel Structure Co., Ltd. has shown a significant increase in stock price, indicating positive market sentiment and potential investment interest [1] Group 1: Company Overview - Honglu Steel Structure Co., Ltd. is located in Hefei, Anhui Province, established on September 19, 2002, and listed on January 18, 2011 [1] - The company specializes in steel structure manufacturing and sales, green building materials production, and general contracting for steel structure assembly projects [1] - The revenue composition of the company includes: H-shaped steel structures (55.06%), box-type cross structures (18.89%), secondary structures (12.85%), pipe structures (6.25%), truss structures (3.86%), and others (3.08%) [1] Group 2: Fund Holdings - According to data, one fund under Jianxin Fund has a significant holding in Honglu Steel Structure [2] - Jianxin Huiyi One-Year Holding Period Mixed A Fund (012485) held 50,000 shares in the second quarter, accounting for 0.36% of the fund's net value, ranking as the third-largest holding [2] - The fund has generated an estimated floating profit of approximately 46,000 yuan today [2] Group 3: Fund Manager Performance - The fund managers of Jianxin Huiyi One-Year Holding Period Mixed A Fund are Yin Runquan and Yang Liyuan [3] - Yin Runquan has a cumulative tenure of 3 years and 352 days, with the fund's total asset scale at 3.28 billion yuan, achieving a best return of 22.3% during his tenure [3] - Yang Liyuan has a cumulative tenure of 1 year and 323 days, with the fund's total asset scale at 371 million yuan, achieving a best return of 9.05% during her tenure [3]

Group 1: Metal Sector - Zijin Mining's net profit forecast for 2025 is 475 million CNY, with a PE ratio of 15.46[12] - Luoyang Molybdenum's net profit forecast for 2025 is 168.65 million CNY, with a PE ratio of 17.35[12] - The copper production of Zijin Mining is expected to increase by 7% to 115,000 tons in 2025[20] Group 2: Chemical Sector - Wanhua Chemical's net profit forecast for 2025 is 141.75 million CNY, with a PE ratio of 0.00[12] - Longbai Group's net profit forecast for 2025 is 23.01 million CNY, with a PE ratio of 19.75[12] - The MDI market is expected to improve as supply and demand conditions stabilize[48] Group 3: Transportation Sector - China Merchants Highway's net profit forecast for 2025 is 55.01 million CNY, with a PE ratio of 12.10[12] - Haitong Development's net profit forecast for 2025 is 4.43 million CNY, with a PE ratio of 18.87[12] Group 4: Construction Sector - Sichuan Road and Bridge's net profit forecast for 2025 is 82.86 million CNY, with a PE ratio of 8.79[12] - Honglu Steel Structure's net profit forecast for 2025 is 7.96 million CNY, with a PE ratio of 15.35[12]