HONGLU(SZ:002541) Changjiang Securities·2025-07-20 05:13Investment Rating - The industry investment rating is "Positive" and maintained [11] Core Insights - The China Iron and Steel Association held a meeting on July 15, proposing strict control of new capacity and promoting the collaborative development of the steel structure construction industry [2][8] - The trend of reducing "involution" in the steel industry is expected to support steel prices, with measures to control crude steel production and eliminate backward capacity [14] - The promotion of steel structures is anticipated to enhance standards and penetration rates, addressing issues like low penetration in residential buildings and high costs [14] - The report emphasizes the performance elasticity of Honglu Steel Structure, highlighting its potential for profit recovery with rising steel prices and improved sales policies [14] Summary by Sections Industry Overview - The meeting emphasized the need for a new capacity governance mechanism to prevent overcapacity risks and promote healthy competition in the steel industry [14] - The focus is on data governance and policy coordination to maintain supply-demand balance [14] Market Trends - The report notes that the trend of reducing "involution" may lead to a potential increase in steel prices, supported by government policies aimed at structural adjustment [14] - The steel structure market is expected to expand as policies promote its adoption in various construction sectors [14] Company Focus - Honglu Steel Structure is highlighted for its dual performance drivers, with profit recovery expected as steel prices rise and operational efficiencies improve through automation [14] - The company is positioned as a high-elasticity investment opportunity, with significant upside potential if market conditions improve [14]