Valin Steel(SZ:000932) EBSCN·2025-10-28 04:52Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 5.91 CNY [6]. Core Insights - The company achieved a revenue of 95.048 billion CNY in the first three quarters of 2025, a year-on-year decrease of 14.88%, while the net profit attributable to the parent company was 2.510 billion CNY, an increase of 41.72% [1]. - The third quarter of 2025 saw a revenue of 31.955 billion CNY, down 10.53% year-on-year and 2.76% quarter-on-quarter, with a net profit of 762 million CNY, up 73.22% year-on-year but down 35.80% quarter-on-quarter [1]. - The company is actively conducting feasibility studies for the VAMA Phase III project, with agreements signed for advanced steel grades and progress in trial production [2]. - The company has launched a 200,000-ton non-oriented silicon steel production line in August 2025, which is expected to significantly reduce losses or turn profitable for the silicon steel subsidiary by the end of the year [3]. - The company has a strong focus on shareholder returns, with cash dividend ratios expected to increase after 2026 [3]. Financial Performance Summary - The company forecasts net profits for 2025, 2026, and 2027 to be 4.012 billion CNY, 4.373 billion CNY, and 4.760 billion CNY respectively, with a maintained "Buy" rating [4]. - Revenue for 2025 is projected at 137.32 billion CNY, with a year-on-year decline of 4.71% [5]. - The earnings per share (EPS) for 2025 is estimated to be 0.58 CNY, with a return on equity (ROE) of 7.04% [5]. Valuation Metrics - The company is expected to have a price-to-earnings (P/E) ratio of 10 for 2025 and a price-to-book (P/B) ratio of 0.7 [5][15]. - The dividend yield is projected to be around 2.7% for 2025 [16].