Nisco(SH:600282) Minsheng Securities·2025-08-21 06:38Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price on August 20, 2025 [6]. Core Insights - The company reported a revenue of 28.944 billion yuan for H1 2025, a year-on-year decrease of 14.06%, while the net profit attributable to shareholders was 1.463 billion yuan, an increase of 18.63% year-on-year [1]. - In Q2 2025, the company achieved a revenue of 14.592 billion yuan, a year-on-year decrease of 13.18% but a quarter-on-quarter increase of 1.66%. The net profit for Q2 was 0.885 billion yuan, showing a year-on-year increase of 30.21% and a quarter-on-quarter increase of 52.94% [1][2]. Summary by Sections Sales and Profitability - Product sales increased quarter-on-quarter, with Q2 2025 steel sales reaching 2.372 million tons, an 11.90% increase from the previous quarter, although down 5.8% year-on-year. The increase was primarily driven by sales of medium-thick plates [2]. - The gross margin for Q2 2025 was 14.52%, up 2.52 percentage points year-on-year and 2.73 percentage points quarter-on-quarter, despite a slight decrease in sales prices for various steel products [2]. Future Outlook - The company is focusing on high-end products to drive quality growth, with advanced steel material sales reaching 1.3372 million tons in H1 2025, accounting for 29.77% of total steel product sales, an increase of 2.64 percentage points year-on-year [3]. - The company is also extending its industrial chain, having acquired exploration rights for the Fanqiao mine and established a production line for ultra-pure iron powder, marking a breakthrough in key technologies in the permanent magnet materials sector [4]. Financial Forecast - The company is expected to achieve net profits attributable to shareholders of 2.798 billion yuan, 3.023 billion yuan, and 3.440 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 10x, 10x, and 8x [4][5].