Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has shown improvement in quarterly non-recurring performance, with a significant increase in net profit for Q3 2025 compared to the previous year [1] - The company is advancing its special materials projects, focusing on high-end product development and production capabilities [2] - The downstream market is expected to improve, with increasing demand for specialized pipes in the oil and gas sector [3] Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 4.284 billion yuan, a year-on-year increase of 1.4%, while net profit attributable to shareholders was 392 million yuan, a decrease of 4.6% [1] - The third quarter of 2025 saw a net profit of 138 million yuan, a year-on-year increase of 61.15% [1] - The company’s projected net profits for 2025 to 2027 are estimated at 579 million yuan, 665 million yuan, and 759 million yuan, respectively, with corresponding P/E ratios of 9.5, 8.3, and 7.3 [3][4] Product Development and Market Position - The company has a production capacity of 1 million tons of specialized pipes, with a strong market presence in various segments such as oil pipes and high-pressure boiler pipes [2] - The special materials project is progressing, with several production lines entering trial production phases, aiming to expand into high-end materials [2] Market Demand Outlook - The oil and gas pipe market is expected to stabilize and optimize, with increased demand anticipated in unconventional oil and gas resource development [3] - Firepower investment in 2025 is projected to reach 102.9 billion yuan, a year-on-year increase of 39.5%, which is expected to positively impact the boiler pipe market [3]