Investment Rating - The report maintains a "Buy" recommendation for the steel sector, highlighting specific companies within the industry [3][4]. Core Insights - The report indicates that iron water remains at a high level, with strong cost support. Although there is a long-term downward trend in iron water, the short-term decline is relatively slow. The supply of iron ore has not yet been released, solidifying the cost bottom in the short term [3][4]. - The overall production and inventory levels of steel are at low points year-on-year, with no significant supply-demand contradictions. The profitability of steel companies is expected to recover due to the optimization of crude steel supply and the gradual release of new iron ore production capacity [3][4]. Summary by Sections Price Trends - As of June 27, steel prices showed mixed trends, with rebar prices at 3,090 CNY/ton (up 20 CNY), high line prices at 3,300 CNY/ton (up 30 CNY), hot-rolled prices stable at 3,240 CNY/ton, cold-rolled prices down 20 CNY to 3,490 CNY/ton, and medium plate prices down 20 CNY to 3,280 CNY/ton [1][10][11]. Production and Inventory - The total production of five major steel varieties reached 8.81 million tons, an increase of 124,800 tons week-on-week. The apparent consumption of rebar was estimated at 2.1991 million tons, up 0.72 million tons from the previous week [2][3]. Profitability - The report estimates that the gross profit for rebar, hot-rolled, and cold-rolled steel changed by +1 CNY/ton, +5 CNY/ton, and -21 CNY/ton respectively compared to the previous week. Electric arc furnace steel saw a decrease of 6 CNY/ton in gross profit [1][3]. Investment Recommendations - Recommended stocks include: 1. General steel sector: Baosteel, Hualing Steel, Nanjing Steel 2. Special steel sector: Xianglou New Materials, CITIC Special Steel, Yongjin Co. 3. Pipe materials: Jiuli Special Materials, Youfa Group, Wujin Stainless Steel - Suggested to pay attention to high-temperature alloy stocks: Fushun Special Steel [3][4]. Key Company Earnings Forecasts - Baosteel (600019.SH): EPS forecast for 2024A at 0.34 CNY, PE at 19, rated as "Buy" - Hualing Steel (000932.SZ): EPS forecast for 2024A at 0.29 CNY, PE at 15, rated as "Buy" - Nanjing Steel (600282.SH): EPS forecast for 2024A at 0.37 CNY, PE at 11, rated as "Buy" [3].

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - In mid - to late June, trading volume is expected to climb. In 2025, the remaining 40% of mandatory circulation allowances can only meet part of the market demand, and about 0.5 - 0.6 billion tons of market demand may be met by the voluntary sales of surplus enterprises. After the CEA price dropped to around 70 yuan, bottom - fishing demand emerged, but currently, the release of mandatory circulation allowances is insufficient, and potential selling pressure still exists. The market price is oscillating at the bottom and still lacks upward momentum. Considering the verification node, trading volume is expected to increase in mid - to late June [2]. 3. Summary by Relevant Catalogs 3.1 National Carbon Market Comprehensive Data - This week, the comprehensive price of the national carbon market rebounded significantly, with a closing price of 70.96 yuan/ton, a week - on - week increase of 4.50% and a year - on - year decrease of 26.45%. The latest single - day average trading price in the national greenhouse gas voluntary emission reduction trading market was 89.32 yuan/ton, a week - on - week increase of 5.08%. The weekly total trading volume in the national carbon market was about 3.1549 million tons, a 42% increase from last week. Among them, the volume of block trading agreements was 2.75 million tons, and the volume of listed trading agreements was about 0.4 million tons, accounting for 13% of the weekly total trading volume (a decrease of 5 percentage points). Carbon quota 24 remained the most actively traded annual quota this week, with its trading volume accounting for 87% (a week - on - week decrease of 5 percentage points). The weekly total trading volume in the national greenhouse gas voluntary emission reduction trading market was about 0.21 million tons, a more than 15 - fold increase week - on - week. The weekly average trading price in the national carbon market was 69.46 yuan/ton, a week - on - week increase of 3.35%. The weekly average trading price in the national greenhouse gas voluntary emission reduction trading market was 86.74 yuan/ton, a 1.68% recovery from the previous week, 25% higher than the weekly average trading price of listed trading agreements in the national carbon market [1]. - The closing prices of carbon quotas from 2019 - 2020 to 2024 were 69.11, 72.00, 71.50, 71.00, and 71.20 yuan/ton respectively, with week - on - week growth rates of 3.15%, 6.67%, 6.72%, 2.51%, and 3.55% respectively, and year - on - year growth rates of - 28.38%, - 25.39%, - 25.87%, N/A, and N/A respectively. The latest average block trading price of carbon quota 24 was 71.20 yuan/ton, a week - on - week increase of 4.01% [7]. 3.2 Carbon Quota Market Data by Year - For different years' carbon quotas, the differences between the average listed trading price and the average block trading price were 6.46%, 2.54%, - 4.70%, - 0.05%, and - 1.55% respectively. The total trading volumes were 566, 246, 3010, 11629, and 1297 million tons respectively, and the proportions of block trading were 86%, 53%, 83%, 83%, and 77% respectively [11]. 3.3 National Greenhouse Gas Voluntary Emission Reduction Registration and Market Trading Data - In 2025, the first batch of registered emission reduction projects included multiple wind and solar power projects, with a total applied - for registered emission reduction of 9.48 million tons. The weekly total trading volume in the national greenhouse gas voluntary emission reduction trading market was 0.2081 million tons, the weekly total trading amount was 18.0529 million yuan, the average trading price was 86.74 yuan/ton, a week - on - week increase of 1.68%, and the premium rate was 25% [13][14]. 4. Recommended Strategy It is recommended that enterprises with quota shortages make batch purchases at low prices before the fourth quarter [3].

Core Viewpoint - The national carbon emission trading market (CEA) has seen a continuous decline in prices, with the latest price at 68.46 yuan/ton, marking a 35.54% drop since reaching a peak of 106.2 yuan/ton in November last year [1][2][3]. Market Dynamics - The CEA price drop is attributed to a supply-demand imbalance and the digestion of policy expectations, with the market currently favoring sellers who lack trading enthusiasm, leading to decreased trading volumes [3][4]. - The trading volume in the national carbon market has been notably low, with 14 trading days this year recording zero transactions, which is unusual compared to previous years [2][3]. Policy and Market Expectations - The market's price fluctuations are closely linked to the compliance period, typically resulting in lower demand and prices post-compliance [3]. - The introduction of the "Interim Regulations on Carbon Emission Trading" and calls for market expansion have initially raised price expectations, but these have since been tempered as market expectations are realized [3][9]. Market Expansion - The national carbon market expanded in March, including industries such as steel, cement, and aluminum, which is expected to add 1,500 key emission units, covering over 60% of national CO2 emissions [3][9]. - Despite the expansion, there has been no corresponding increase in trading volume or market activity, leading to discussions about the potential need for financial institutions to participate in trading [3][4]. CCER vs. CEA Pricing - The price of CCER (China Certified Emission Reduction) has remained stable at 85 yuan/ton, approximately 24% higher than CEA prices, leading to a price inversion [7][9]. - The demand for CCER is driven by both mandatory reduction requirements and voluntary purchases for corporate social responsibility, resulting in a more stable price compared to CEA [9][10]. Future Outlook - The current price inversion between CCER and CEA is deemed unsustainable, as prolonged discrepancies may reduce demand for CEA [9][10]. - The differing market mechanisms of CEA (mandatory reduction) and CCER (voluntary reduction) suggest that fluctuations in one market will not necessarily stabilize the other [10].

Core Viewpoint - Suzhou Huaxing Yuanchuang Technology Co., Ltd. is a leading provider of industrial automation testing equipment and complete line system solutions, focusing on various high-tech industries such as LCD, OLED, semiconductor integrated circuits, and smart wearable devices [2][4]. Company Overview - The company specializes in providing automation testing equipment across multiple process nodes for chips, SIPs, modules, systems, and complete machines, leveraging core technologies in electronics, optics, acoustics, RF, machine vision, and mechanical automation [2]. - The company maintains a strong competitive advantage and independent innovation capability in high-speed, high-frequency, and high-precision signal board cards, machine vision image algorithms, and precision connection components [2]. R&D Investment - In 2024, the company's R&D investment amounted to 39.4 million yuan, remaining stable compared to the previous year, accounting for 21.62% of current revenue, an increase of 0.28 percentage points year-on-year [3]. - The company has applied for a total of 304 domestic and international intellectual property rights, with 261 newly approved, indicating significant research achievements and a strong R&D-driven characteristic [3]. AI Application - The company is actively researching the application of AI algorithms in detection technologies, expecting a substantial improvement in detection efficiency [3]. International Expansion - Internationalization is a key strategic direction for the company, which has established subsidiaries in countries such as South Korea, Japan, the United States, Singapore, Vietnam, Thailand, and India to meet market demands [4]. - The company plans to accelerate its global market layout and deepen its overseas business development [4]. Competitive Strategy - The company faces intense competition from foreign manufacturers in the flat panel display detection, wearable smart device detection, and integrated circuit testing industries, where foreign firms hold a technological advantage [4]. - To combat increasing market competition, the company will enhance R&D investment, attract top talent, and strengthen its design, production, and market development capabilities [4].

Summary of Conference Call on Real Estate and Related Industries Industry Overview - The conference call primarily discusses the **real estate market** and its related sectors, including **steel**, **cement**, and **building materials** industries. Key Points and Arguments Real Estate Market Performance - The real estate market has shown strong momentum from 2024 to 2025, with both new and second-hand home sales performing well, particularly second-hand homes, which saw a year-on-year increase of **2%**. In key cities, the year-on-year growth rate for new and second-hand homes reached **20%** [2][3] - The demand structure in the real estate market exhibits a "dumbbell" characteristic, with increased demand for large units and low-priced housing, indicating buyers' dual pursuit of improved living conditions and cost-effectiveness [3][4] Market Dynamics - The entry of first-time homebuyers has positively impacted the market, enhancing expectations for price stabilization and driving overall transaction volume up. The leverage effect from low-priced housing sales is significantly higher than that of large units, contributing to a healthier market structure [4] - Despite the positive performance, uncertainties remain, such as significant price fluctuations in some cities and seasonal factors that may affect second-quarter data [5] Future Outlook for Related Industries - The steel and cement industries are expected to benefit from the gradual relaxation of policies and improvements in the investment environment. A stable real estate market is viewed positively for the development prospects of these sectors [6] - The steel sector is currently at a low valuation level, with PB and PE ratios at near ten-year lows, indicating limited downside and significant upside potential if policies are favorable and demand improves [8] Construction and Material Demand - In the first two months of 2025, the construction industry saw a **127%** year-on-year increase in new construction area, indicating a recovery in demand. Cement production saw a narrowing decline compared to the previous year, suggesting a stabilization trend [21] - Cement prices are expected to rise due to demand-driven factors, with clinker inventory at a new low and significant production control measures in place [20] Steel Industry Insights - The steel industry has experienced a consensus on supply surplus, with profit improvements expected to be more sustainable than in the past. The potential for profit erosion from raw material prices is considered low [16] - The industry has faced demand declines but does not represent a systemic risk, as manufacturing demand remains stable despite significant drops in construction-related demand [17] Building Materials Market Trends - The building materials sector is showing signs of recovery, with price increases expected in various categories, including cement and fiberglass, driven by seasonal demand and supply constraints [19][22] - The glass market is also experiencing price increases influenced by futures markets, with expectations for a rebound despite high inventory levels [23] Consumer Building Materials - In the consumer building materials sector, companies in renovation materials are performing well, with double-digit growth in sales volume in early 2025. However, high costs have led to a decline in sales volume later in the quarter [24] Investment Opportunities - The cyclical segments of the real estate chain, particularly in building materials like cement and fiberglass, are viewed as resilient and promising investment opportunities, with high dividend yields from leading companies [26] Additional Important Insights - The call emphasizes the importance of monitoring macroeconomic data and demand changes in late March to April to assess future trends in the real estate and related industries [26]