Core Viewpoint - Company has disclosed its revenue recognition plan for contracts signed but not yet fulfilled, indicating a stable outlook for future income recognition [2] Group 1: Revenue Recognition - As of June 30, 2025, the company has signed contracts with a total revenue amount of 1,749.78 million yuan that are yet to be fulfilled [2] - Of this amount, 554.80 million yuan is expected to be recognized as revenue in 2025, 529.98 million yuan in 2026, and 665.00 million yuan in 2027 [2] - The company reports that there have been no significant changes to the disclosed backlog of orders and revenue recognition expectations, and it is progressing with production delivery and revenue recognition as planned [2]

（文章来源：证券日报） 证券日报网讯图南股份10月22日发布公告，在公司回答调研者提问时表示，2025年第三季度公司实现归 属于上市公司股东的净利润为3039.28万元，较2025年第二季度环比下降，主要原因为：2025年第三季 度，公司全资子公司沈阳图南精密部件制造有限公司（以下简称"图南部件"）、沈阳图南智能制造有限 公司（以下简称"图南智能"）中小零部件产量已有较大提升，产品从生产交付到收入确认仍需一定周 期，期间较高的运营成本导致全资子公司亏损增加，对公司第三季度整体盈利水平造成阶段性影响。 ...

Core Insights - The company, Tunan Co., announced a significant increase in inventory levels by the end of Q3 2025 compared to the beginning of 2025 and the end of H1 2025, primarily due to production preparations based on existing orders [2] Group 1 - The inventory balance at the end of Q3 2025 has increased substantially [2] - The increase in inventory is attributed to the company's strategic production planning in response to current orders [2] - The rise in inventory includes raw materials, work-in-progress, finished goods, and goods dispatched [2]

Core Viewpoint - Company focuses on high-performance alloy materials and their applications in key industries such as aerospace, gas turbines, and petrochemicals [2] Product Overview - Main products include cast high-temperature alloys, deformed high-temperature alloys, and special stainless steels [2] - Products are primarily used in aerospace engines, gas turbines, and petrochemical sectors [2] Pricing Strategy - Sales pricing is based on a cost-plus model, using the spot market price of electrolytic nickel and adding a processing fee [2] - Pricing adjustments are made considering market conditions, customer demand, long-term relationships, payment terms, and strategic partnerships [2] Impact of Raw Material Prices - Company experiences fluctuations in sales prices of certain products due to raw material price volatility [2] Cost Control and Profitability - Company emphasizes controlling product costs and continuously optimizing the sales product structure [2] - Expected stable gross margin levels for products by 2025 [2]

Core Viewpoint - Tunan Co., Ltd. has announced the completion and production launch of its "Automated Processing Production Line for Small and Medium-Sized Aerospace Components," which has achieved an annual production capacity of 500,000 aerospace components [2] Group 1 - The "Automated Processing Production Line for Small and Medium-Sized Aerospace Components" project is now operational, with a production capacity of 500,000 units per year [2] - The ongoing project for "Annual Production of 10 Million Aerospace Small and Medium-Sized Components" is still under construction and is expected to be completed by the end of 2025 [2]

Group 1: Financial Performance - In Q3 2025, the net profit attributable to shareholders was 30.39 million yuan, a decrease compared to Q2 2025, primarily due to increased operational costs leading to losses in subsidiaries [2] - The inventory balance at the end of Q3 2025 was 749.53 million yuan, reflecting a 38.48% increase compared to the beginning of 2025 and a 33.19% increase compared to the end of the first half of 2025 [3] Group 2: Production and Operations - The "Aerospace Small and Medium Parts Automation Processing Line" project at the subsidiary has been completed and has an annual production capacity of 50,000 sets [2] - The "Annual Production of 1,000 Small and Medium Parts Automation Production Line" project is still under construction and is expected to be completed by the end of 2025 [3] Group 3: Orders and Revenue Recognition - As of June 30, 2025, the company had signed contracts with a total revenue amount of 174.98 million yuan expected to be recognized in 2025, 52.99 million yuan in 2026, and 66.50 million yuan in 2027 [3] - There have been no significant changes in the order backlog and revenue recognition expectations since the half-year report, with normal contract performance and progress [3] Group 4: Product Applications and Pricing - The main products include casting high-temperature alloys, deformed high-temperature alloys, and special stainless steels, primarily used in aerospace engines, gas turbines, and petrochemical industries [3] - The company employs a cost-plus pricing strategy, adjusting prices based on raw material market fluctuations, and expects overall stability in product gross margins for 2025 [3]

Core Insights - The steel industry is experiencing a gradual recovery in demand, with a notable increase in apparent consumption and a decrease in inventory levels, indicating a potential stabilization in the market [1][3] - Despite the positive demand trends, profitability in the steel sector has declined, with significant drops in gross margins for key products, suggesting ongoing cost pressures [2] - The supply side is expected to continue its contraction, supported by government policies aimed at reducing production and promoting a balance between supply and demand [3] Demand and Supply Analysis - Apparent consumption of the five major steel products reached 8.7541 million tons, up by 1.2398 million tons week-on-week, with construction materials and sheet products also showing increases [1] - Total steel production was 8.5695 million tons, down by 0.0636 million tons, while total inventory decreased to 15.8226 million tons, down by 0.1846 million tons, maintaining a low level [1] - The operating rate of blast furnaces remained stable at 84.27%, while electric furnace operating rates increased slightly, indicating a mixed response in production capabilities [1] Profitability Trends - The average gross profit for rebar fell to 111.6 CNY per ton, down by 34.3 CNY per ton, and for hot-rolled coils, it dropped to 21.6 CNY per ton, down by 67.6 CNY per ton [2] - The profitability rate for 247 steel companies decreased to 55.41%, down by 0.87% week-on-week, reflecting the challenges faced by the industry [2] Future Outlook - The demand from the real estate sector is expected to weaken, but stable growth is anticipated in infrastructure and manufacturing, which may support overall steel demand [3] - The government has introduced policies to control production, aiming to phase out inefficient capacities and support advanced enterprises, which may lead to a quicker recovery in the steel industry's fundamentals [3] Investment Recommendations - Companies with leading technology and product structures, such as Baosteel (600019.SH) and Hualing Steel (000932.SZ), are recommended for their competitive advantages [5] - Low-valuation, high-dividend steel companies like CITIC Special Steel (000708.SZ) and Yongjin Shares (603995.SH) are also highlighted as attractive investment opportunities [5] - The report suggests a positive outlook for upstream resource companies, recommending firms like Hebei Steel Resources (000923.SZ) and Erdos (600295.SH) due to their long-term advantages [5]

Core Viewpoint - Tunan Co., Ltd. has shown a significant stock price increase of 29.95% year-to-date, with a market capitalization of 11.138 billion yuan as of October 21, 2023, indicating strong investor interest and potential growth in the high-performance alloy materials sector [1][2]. Financial Performance - For the period from January to September 2025, Tunan Co., Ltd. reported a revenue of 859 million yuan, a year-on-year decrease of 20.46%, and a net profit attributable to shareholders of 123 million yuan, down 52.21% compared to the previous year [2]. - The company has distributed a total of 368 million yuan in dividends since its A-share listing, with 287 million yuan distributed over the past three years [3]. Shareholder and Market Activity - As of October 10, 2023, the number of shareholders increased by 7.90% to 14,400, while the average number of circulating shares per shareholder decreased by 7.32% to 20,344 shares [2]. - The stock has seen a net inflow of 1.158 million yuan from major funds, with significant buying activity from large orders [1]. Business Overview - Tunan Co., Ltd., established on May 28, 1991, specializes in the research, production, and sales of high-temperature alloys and special stainless steels, with a revenue composition of 46.24% from deformed high-temperature alloys and 28.17% from cast high-temperature alloys [1]. - The company operates within the non-ferrous metals sector, specifically in the new materials category, and is involved in various concept sectors including specialized and innovative enterprises, commercial aerospace, and military-civilian integration [1].

Investment Rating - The report maintains an "Overweight" rating for the steel industry [5]. Core Viewpoints - Demand is expected to gradually bottom out, and supply-side market clearing has begun, indicating a potential recovery in the steel industry's fundamentals. If supply policies are implemented, the contraction of supply may accelerate, leading to quicker industry recovery [3][8]. - The report highlights a week-on-week increase in steel consumption and a decrease in inventory levels, suggesting a positive trend in demand recovery post-holiday [5][12]. - Profit margins for steel production have decreased, with average gross margins for rebar and hot-rolled coils declining significantly [5][42]. Summary by Sections Steel Prices and Inventory - Last week, the price of Shanghai rebar fell by 50 CNY/ton to 3210 CNY/ton, a decrease of 1.54%. Hot-rolled coil prices dropped by 120 CNY/ton to 3280 CNY/ton, a decline of 3.53% [8]. - Total inventory of major steel products decreased to 15.82 million tons, down 1.15% week-on-week [12]. Raw Materials - Iron ore spot prices decreased by 10 CNY/ton to 780 CNY/ton, while futures prices fell by 24.5 CNY/ton to 771 CNY/ton [51]. - Iron ore port inventory rose to 142.78 million tons, an increase of 1.81% [53]. Production and Profitability - The total steel production last week was 8.57 million tons, a decrease of 6.36 million tons week-on-week [36]. - The average gross margin for rebar was 111.6 CNY/ton, down 34.3 CNY/ton, while for hot-rolled coils, it was 21.6 CNY/ton, down 67.6 CNY/ton [42]. Market Outlook - The report anticipates that the demand for steel will stabilize, with a gradual recovery expected in the construction and manufacturing sectors, despite ongoing challenges in the real estate market [5][8]. - The steel industry is expected to benefit from policies aimed at reducing inefficient production capacity and promoting high-quality development [5].

Investment Rating - The investment rating for the company is "Accumulate" [4][10]. Core Views - The company reported a revenue of 859 million yuan for the first three quarters of 2025, a decrease of 20.5% year-on-year, and a net profit attributable to shareholders of 123 million yuan, down 52.2% year-on-year [1][4]. - The decline in performance is attributed to the operational costs during the ramp-up phase of the production lines at its subsidiaries in Shenyang, which led to losses and impacted overall profitability [1]. - The company has significantly increased its inventory to 750 million yuan, up 33.2% quarter-on-quarter, indicating proactive production and delivery strategies [2]. Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 260 million yuan, a decline of 25.3% year-on-year and 16.8% quarter-on-quarter, with a net profit of 30 million yuan, down 54.5% year-on-year and 40.7% quarter-on-quarter [1][4]. - The operational costs during the ramp-up phase of production lines at subsidiaries have led to a temporary decline in profitability [1]. Inventory and Accounts Payable - As of the end of Q3 2025, the company’s inventory stood at 750 million yuan, reflecting a 33.2% increase quarter-on-quarter, driven by production preparations based on existing orders [2]. - Accounts payable reached 464 million yuan, a significant increase of 174.7% quarter-on-quarter, primarily due to increased material procurement and ongoing construction projects [2]. Profit Forecast - The company is expected to achieve revenues of 1.52 billion yuan, 2.06 billion yuan, and 2.56 billion yuan for 2025, 2026, and 2027 respectively, representing year-on-year growth rates of 20%, 36%, and 24% [2]. - Net profit attributable to shareholders is projected to be 280 million yuan, 420 million yuan, and 530 million yuan for the same years, with corresponding growth rates of 4%, 51%, and 27% [2].