Valin Steel(SZ:000932) Shenwan Hongyuan Securities·2025-08-27 01:48Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company reported better-than-expected performance in the first half of 2025, with total revenue of 63.09 billion yuan, a year-on-year decrease of 16.93%, and a net profit attributable to shareholders of 1.748 billion yuan, a year-on-year increase of 31.31% [6] - The decline in raw material costs has led to a recovery in gross profit per ton of steel, with a gross profit margin of approximately 9.9% in the first half of 2025, up from 6.8% in the previous year [6] - The company has continued to innovate, with 233 new patent authorizations in the first half of 2025, contributing to an increase in the sales proportion of high-end products [6] Financial Data and Profit Forecast - Total revenue forecast for 2025 is 141.486 billion yuan, with a projected net profit of 2.740 billion yuan, reflecting a year-on-year growth of 34.8% [2] - Earnings per share are expected to increase from 0.25 yuan in 2025H1 to 0.40 yuan in 2025E [2] - The company's return on equity (ROE) is projected to improve from 3.2% in 2025H1 to 4.9% in 2025E [2] Market Data - As of August 26, 2025, the closing price of the company's stock is 5.73 yuan, with a market capitalization of 39.586 billion yuan [3] - The company has a price-to-book ratio of 0.7 and a dividend yield of 1.75% [3] Investment Analysis - The company has adjusted its net profit forecasts for 2025-2027 to 2.740 billion, 3.556 billion, and 3.957 billion yuan respectively, reflecting an optimistic outlook due to ongoing industry improvements and product structure optimization [6]