Report Industry Investment Rating No information provided in the content. Core Viewpoints - The current convertible bond of Yingliu Co., Ltd. raises 1.5 billion yuan. After deducting issuance fees, it will be used for the blade machining and coating project, the intelligent upgrading project of advanced nuclear energy materials and key components, and supplementing working capital and repaying bank loans. It will be listed on October 22, 2025. - The expected listing price is above 130 yuan. The bond rating of Yingliu Convertible Bond is AA+. The latest parity is 112.5 yuan. Considering the high sentiment in the convertible bond market since July and the high prosperity of the company's industry, the conversion premium rate on the listing day is expected to be between 25 - 30%, and the listing price will be above 130 yuan. If the price is below 140 yuan, it can be actively concerned [1]. Summary by Directory I. Convertible Bond Clause Analysis - The issuance scale of the company's current convertible bond is 1.5 billion yuan, with a term of 6 years. The initial conversion price is 30.47 yuan. Calculated at the initial conversion price, it can be converted into 49.2287 million A - shares of Yingliu Co., Ltd. The dilution rate of full conversion on the company's total A - share capital and non - restricted tradable shares is 7.25%. The conversion period starts from March 25, 2026, to the maturity date of the convertible bond (September 18, 2031). The original shareholder placement ratio is 78.4% [10]. - The 6 - year coupon rates of the convertible bond are 0.10% in the first year, 0.30% in the second year, 0.60% in the third year, 1.00% in the fourth year, 1.50% in the fifth year, and 2.00% in the sixth year, slightly lower than the industry average. The maturity redemption price is 109 yuan. The bond is rated AA+ for both the issuer and the bond, and there is no guarantee. The additional terms include a conversion price correction clause (15/30, 85%), a conditional redemption clause (15/30, 130%), and a put clause (30, 70%) [11][12]. - As of October 20, 2025, the latest closing price is 34.27 yuan, corresponding to a parity of 112.47 yuan. The calculated pure bond value is 97.67 yuan, with good bond - bottom protection. The yield to maturity is 2.00%, higher than the yield of the same - term treasury bond [12]. II. Underlying Stock Fundamentals - It is a private enterprise with relatively dispersed equity. As of the first half of 2025, Mr. Du Yingliu directly holds 1.71% of the company's shares and controls 27.37% through Yingliu Investment. Together with the shares held by the consistent action persons of the controlling shareholder, he controls 34.74% of the company's shares in total and serves as the chairman and general manager [13]. - The company's main products are high - temperature alloy products, precision cast steel products, nuclear power and other medium - and large - sized cast steel products, and new materials and equipment, which are mainly used in high - end equipment fields such as aerospace, gas turbines, and nuclear power. Its manufacturing technology and production equipment are domestically leading, and its products are exported to more than 40 countries and regions, serving more than 100 customers, including domestic and global industry leaders [16]. - In the first half of 2025, the company's sales revenue was 1.384 billion yuan, a year - on - year increase of 9.11%. The revenue of high - temperature alloy products and precision castings was 842 million yuan, accounting for 63%. The revenue scale of the two - engine products has been steadily increasing, and the overseas revenue accounted for 47.4% [19]. - The company's gross profit margin has remained at a high level, around 36% in the past few years. The period expenses have gradually decreased, with the management expense rate dropping to around 8%, the sales expense rate remaining at around 1%, and the financial expense rate dropping to around 4% [22]. - The company has maintained a high - intensity R & D investment, with an R & D expense rate of over 10% for many years and a long - term technical staff ratio of over 20% [26]. - The two - engine business has high industrial chain prosperity. The downstream orders in the gas turbine and aero - engine fields are growing rapidly, and the company's two - engine business orders are also growing rapidly. As of the first half of 2025, the on - hand orders exceeded 1.5 billion yuan [29][30]. - The nuclear power business is recovering. The domestic nuclear power industry has maintained a good development momentum, and the company is an important domestic supplier in the nuclear power field. It signed a strategic cooperation agreement with Shengu Nuclear Power in the first half of 2025 and won multiple nuclear energy material projects. It also holds 60% of the equity of Jubian New Materials [34]. - The company's profitability is gradually improving. As a heavy - asset industry, with the increase in capacity utilization, the company's net profit margin, asset turnover rate, and ROE have all increased. The ROE has increased from 2% to around 10% [34]. III. Analysis of Convertible Bond Fund - Raising Projects - The company's current convertible bond raises 1.5 billion yuan. After deducting issuance fees, it will be used for the blade machining and coating project, the intelligent upgrading project of advanced nuclear energy materials and key components, and supplementing working capital and repaying bank loans [1][41]. - The blade machining and coating project is an extension of the company's existing product deep - processing processes, which can improve the service life and efficiency of high - temperature alloy components and form a complete production chain. The planned construction period is 48 months, starting from July 2022 and expected to be completed in June 2026 [41]. - The intelligent upgrading project of advanced nuclear energy materials and key components produces materials that have passed national - level industry appraisals. The project is expected to be completed in October 2026, with a construction period of 24 months starting from November 2024 [41].