Core Insights - The company has turned a profit in H1 2025, achieving a net profit of 7.58 million yuan, compared to a loss in the previous period [1] - The company generated revenue of 21.198 billion yuan, a year-on-year decrease of 7.0%, while gross profit increased by 7.6% to 554 million yuan [1] Financial Performance - In H1 2025, the company reported revenue of 21.198 billion yuan, with 20.473 billion yuan from processing business and 0.725 billion yuan from manufacturing business [1] - The group recorded a net profit of approximately 22.8 million yuan, a year-on-year increase of about 141.6% [1] - The sales volume for stainless steel processing was approximately 996,000 tons, an increase of about 3.1%, while carbon steel processing sales volume was approximately 2.391 million tons, with a growth of 0.4% [1] Company Overview - The company is a leading player in metal processing in China, providing high-end manufacturing services, including steel material processing, component production, and finished product manufacturing [2] - It has established 11 processing service centers and a manufacturing base along the Yangtze River, with an overseas presence in Europe [2] - The company serves numerous leading enterprises across various industries, including automotive, home appliances, and petrochemicals [2] Strategic Outlook - The company is projected to achieve net profits of 40 million yuan, 127 million yuan, and 212 million yuan for the years 2025 to 2027, respectively [2] - A target price of 1.86 HKD is set for 2026, based on a 17x PE ratio, with an initial "buy" rating assigned [2]