LIUSTEELCO(SH:601003) Hua Xia Shi Bao·2025-07-21 07:58Core Viewpoint - Several listed steel companies have reported significant profit growth for the first half of 2025, with Liugang Co., Ltd. showing a remarkable increase in net profit by 530% to 641% compared to the previous year [1][3][5] Group 1: Company Performance - Liugang Co., Ltd. expects a net profit of approximately 3.4 billion to 4 billion yuan for the first half of 2025, an increase of 2.86 billion to 3.46 billion yuan year-on-year [3] - The company achieved a net profit of 2.60 billion yuan in the first quarter of 2025, a nearly sixfold increase year-on-year [1][3] - The significant profit growth is attributed to a decrease in raw material prices and the company's strategic focus on product transformation and operational efficiency [4][6] Group 2: Industry Trends - The steel industry is experiencing improved profitability, with cumulative profits of 31.69 billion yuan from January to May 2025, surpassing the total profits of 29.19 billion yuan for the entire year of 2024 [5] - The production of pig iron and crude steel has decreased by 0.8% and 3.0% respectively in the first half of 2025, while steel output increased by 4.6% [5] - The "anti-involution" policy is expected to accelerate industry transformation towards high-quality development, benefiting leading steel companies while posing challenges for smaller firms [7][6] Group 3: Market Dynamics - The decline in prices of iron ore, coke, and scrap steel has released cost advantages for steel companies [6] - Trade protectionism in countries like the United States has led to increased export opportunities, filling domestic demand gaps and improving the performance of domestic steel companies [6] - Liugang Co., Ltd. has responded positively to the "anti-involution" policy, aiming to eliminate non-compliant production capacity and pursue a healthier development path [7]