Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The short - term and medium - term outlook for TL2506 is "oscillation", and the intraday view is "oscillation with a slight upward bias", with the overall view being "range - bound oscillation" due to the fulfillment of interest - rate cut expectations [1]. - For financial futures in the bond index sector (TL, T, TF, TS), the intraday view is "oscillation with a slight upward bias", the medium - term view is "oscillation", and the reference view is "range - bound oscillation". In the short term, the upside and downside space for bond futures is limited, and they are expected to remain range - bound [4]. 3. Summary by Related Catalogs 3.1 Variety Viewpoint Reference - Financial Futures Index Sector - For TL2506, the short - term, medium - term, and intraday views are "oscillation", "oscillation", and "oscillation with a slight upward bias" respectively. The core logic is that the interest - rate cut expectation has been fulfilled, and it is in short - term range - bound consolidation [1]. 3.2 Main Variety Price Market Driving Logic - Financial Futures Index Sector - The intraday view for TL, T, TF, TS is "oscillation with a slight upward bias", the medium - term view is "oscillation", and the reference view is "range - bound oscillation". The core logic is that in the long - term, due to large external uncertainties, the central bank needs to implement a moderately loose monetary policy, providing a solid policy basis for the upward movement of bonds. Currently, the implied interest - rate cut expectation in bond futures prices is low, indicating strong bottom support. However, after the release of the China - US economic and trade talks joint statement, the short - term risk of the tariff war has eased, the Fed's hawkish stance has put pressure on the exchange - rate spread, and the central bank's recent interest - rate and reserve - requirement ratio cuts require further observation of macroeconomic indicators to determine the pace and intensity of monetary easing, resulting in limited upward momentum for bond futures [4].

Report Summary 1) Report Industry Investment Rating No information provided. 2) Core Viewpoints of the Report - The overall view for the financial futures stock index sector is that the index futures are expected to operate with a bias towards strength in an oscillatory manner. The short - term view for IH2506 is oscillatory, the medium - term view is oscillatory, and the intraday view is oscillatory with a bias towards strength, with an overall view of range - bound oscillation. For IF, IH, IC, and IM, the intraday view is oscillatory with a bias towards strength, and the medium - term view is oscillatory [1][4]. - The core logic is that the 4 - month manufacturing PMI released last Wednesday was 49.0%, down 1.5 percentage points from the previous month, indicating that external demand decline has disturbed the macro - economy. The policy expectation is expected to heat up after the May Day holiday, and the market's cautious sentiment will fade, with trading volume in the stock market expected to pick up. It is expected that the index futures will break through the gap in early April and continue to rebound [4]. 3) Summary by Relevant Catalogs Variety Viewpoint Reference - Financial Futures Stock Index Sector - For IH2506, the short - term view is oscillatory, the medium - term view is oscillatory, the intraday view is oscillatory with a bias towards strength, and the overall view is range - bound oscillation. The core logic is the co - existence of positive policy expectations and external uncertainties [1]. Main Variety Price Market Driving Logic - Financial Futures Stock Index Sector - The intraday view for IF, IH, IC, and IM is oscillatory with a bias towards strength, and the medium - term view is oscillatory, with an overall view of range - bound oscillation. The 4 - month manufacturing PMI was 49.0%, down 1.5 percentage points from the previous month, indicating external demand decline disturbing the macro - economy. Policy expectation is expected to heat up after the May Day holiday, and market sentiment is expected to recover, with index futures expected to operate with a bias towards strength in an oscillatory manner [4].

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The short - term and medium - term views of IH2506 are both "oscillation", and the intraday view is "oscillation with a slight upward bias", with an overall view of "range oscillation" due to the coexistence of positive policy expectations and external uncertainties [1]. - For IF, IH, IC, and IM, the intraday view is "oscillation with a slight upward bias", the medium - term view is "oscillation", and the overall view is "range oscillation". The stock index is in an oscillatory consolidation phase before the holiday because of the coexistence of multiple long and short factors [5]. 3. Summary by Relevant Catalogs 3.1 Variety Viewpoint Reference - Financial Futures Stock Index Sector - For IH2506, the short - term is "oscillation", the medium - term is "oscillation", the intraday is "oscillation with a slight upward bias", and the view is "range oscillation". The core logic is the coexistence of positive policy expectations and external uncertainties [1]. 3.2 Main Variety Price Market Driving Logic - Financial Futures Stock Index Sector - Yesterday, each stock index continued its narrow - range oscillatory consolidation. The stock market trading volume was 1.0417 trillion yuan, a decrease of 35 billion yuan from the previous day [5]. - The Politburo meeting in April sent a signal of stabilizing expectations and confidence to the market, but there is no signal of concentrated policy intensification yet. Policy expectations will rise if economic data weakens [5]. - As the impact of the external tariff war weakens marginally and domestic policies are still in the observation period, the driving force of the stock index has weakened, leading to an oscillatory consolidation [5]. - The stock market trading volume has been stable at around 1 trillion yuan recently, indicating that investors' wait - and - see sentiment has increased and their willingness to chase the rise is not strong [5]. - The stock index has rebounded to the gap position in early April and faces technical selling pressure if it continues to rise. Also, investors are cautious due to the uncertainties during the May Day holiday [5].

Financial Data and Key Metrics Changes - Net earnings for Q2 2025 increased to $10.2 million from $6.9 million a year ago, with earnings per share rising to $0.52 from $0.35 [5] - Gross profit for the quarter rose to $24.5 million, an increase of 8.8% year-over-year, while gross margin expanded to 12.3% from 11.3% [8] - Cash flow from operations used $3.3 million in the quarter compared to providing $1.4 million last year [14] Business Line Data and Key Metrics Changes - Shipments for the quarter increased by 0.9% year-over-year and sequentially from Q1 [5] - Average selling prices declined by 2.2% year-over-year but rose by 0.1% sequentially from Q1 [6] - G&A expenses increased to $10.8 million or 10.7% of net sales, compared to $7.9 million or 7.2% of net sales in the prior year [11] Market Data and Key Metrics Changes - The supply of wire rod in the US market has become more constrained, leading to price increases of approximately $150 per ton during Q1 [7] - The architectural billing index (ABI) ratio score was 45.5%, indicating declining billings, while the Dodge Amendment Index saw a decrease of 0.9% in March [20][21] Company Strategy and Development Direction - The company is focused on securing an adequate supply of raw materials to minimize potential disruptions to operations [7] - The recent tariff strategy has been viewed positively, as it applies to imports of PC Strand, eliminating previous inequities [25] - The company has lowered its full-year capital expenditure target to $17 million from $22 million due to acquisitions and integration activities [34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about market outlook, supported by strong demand and shipment trends [17] - There are uncertainties related to US trade policies and potential economic fallout from tariff strategies [18] - The company is aware of risks related to the administration's tariff policies but is positioned to maximize shipments and optimize costs [35] Other Important Information - The company repurchased 1.1 million of its common equity, equal to approximately 40,000 shares [16] - The effective tax rate for the quarter was 23.2%, slightly up from 22.5% last year [13] Q&A Session Summary Question: How is the company viewing and managing the broader operating environment? - Management noted a distinct acceleration in business beginning in Q1, with robust conditions expected to continue [39] Question: What are the thoughts on the disconnect between macro indicators and on-the-ground conditions? - Management acknowledged the lack of objective data but emphasized solid quotation activity and customer optimism [43] Question: How is the company thinking about pricing in the current environment? - Management indicated that the extension of tariffs to PC Strand is positive, but US steel prices remain higher than world market prices [48] Question: How does the current situation compare to the disruptions seen during COVID? - Management stated that the underlying fundamentals today are much more solid than during the COVID recovery [58] Question: Will there be ASP growth year-over-year next quarter? - Management believes it would be hard to see a deterioration in ASP growth during Q3 [66]