Group 1: Core Perspective - The "14th Five-Year Plan" is a critical period for the Chinese steel industry to transition from scale leadership to quality breakthroughs, with special steel being essential for high-end manufacturing [1] - CITIC Special Steel has emerged as a benchmark in the global special steel industry through continuous efforts in innovation, low-carbon transformation, and social responsibility [1][2] Group 2: Technological Innovation - The steel industry's transformation focuses on shifting from meeting quantity demands to supporting quality upgrades, with special steel providing indispensable material support for major national projects [2][3] - CITIC Special Steel maintains an average annual R&D investment of over 3% of revenue, significantly exceeding the industry average, and has obtained 1,851 authorized patents, including 50 international patents [3] Group 3: Green Transformation - The steel industry accounts for approximately 15% of national carbon emissions, and CITIC Special Steel adopts a dual approach to carbon reduction: enhancing its own low-carbon production system and innovating products to assist downstream industries in reducing emissions [4] - The company has implemented significant renewable energy projects, including 157 MW of solar power and 28.8 MW of wind power, achieving annual carbon reductions exceeding 110,000 tons [4] Group 4: Social Responsibility and ESG - CITIC Special Steel integrates social responsibility into its core operations, focusing on long-term contributions to the industry chain, employees, and society, rather than merely engaging in charitable donations [6] - The company has received multiple awards for its ESG practices, including the "Five-Star Golden Award" for social responsibility in the manufacturing sector [7] Group 5: Future Directions - The future of China's special steel industry is expected to shift from "catching up" to "leading," with a focus on high-end manufacturing, new energy, and marine engineering [7][8] - CITIC Special Steel aims to achieve industry-leading carbon neutrality, deepen research in hydrogen metallurgy, and replicate its "lighthouse factory" model across more bases [7][8]

Core Viewpoint - The strategic cooperation between the National Carbon Measurement Center (Fujian) and CITIC Pacific Special Steel Group aims to establish a "dual carbon" innovation platform in the special steel sector, promoting green development in the industry [1][2]. Group 1: Strategic Cooperation - The signing ceremony took place in Jiangyin City, Jiangsu Province, focusing on major technological needs of the nation and enterprises [1]. - Both parties will leverage their strengths to create a national low-carbon high-end think tank and develop a differentiated low-carbon evaluation system for special steel [1][2]. - The collaboration aims to support the green and high-quality development of the special steel industry and achieve national "dual carbon" goals [1]. Group 2: Local Government Support - The Deputy Mayor of Nanping City emphasized the importance of green development and the need for intelligent upgrades in the industry [1]. - The local government hopes that this strategic partnership will enhance CITIC Pacific Special Steel's global leadership in the special steel sector and drive the green transformation of Jiangyin's overall industry [2]. Group 3: Technical Advancements - The cooperation will focus on the entire special steel industry chain, addressing key technical bottlenecks in carbon measurement, emission reduction, and certification [2]. - The initiative aims to enhance China's international influence in the special steel industry through systematic breakthroughs in key technologies [2].

Core Insights - On September 22, brokerages set target prices for listed companies, with notable increases for Gao Weida, SAIC Motor, and Haitian Flavoring, showing target price increases of 98.76%, 37.72%, and 27.18% respectively, across the software development, passenger vehicle, and seasoning industries [1][3] Group 1: Target Price Increases - Gao Weida received a target price of 51.50 yuan, reflecting a target price increase of 98.76% [3] - SAIC Motor's target price was set at 26.25 yuan, indicating a 37.72% increase [3] - Haitian Flavoring's target price reached 50.25 yuan, with a 27.18% increase [3] Group 2: Rating Adjustments - One company, Tebian Electric Apparatus, had its rating upgraded from "Hold" to "Strong Buy" by China Merchants Securities [4] - One company, Jiangling Motors, had its rating downgraded from "Buy" to "Hold" by Industrial Securities [5] Group 3: First Coverage - On September 22, brokerages initiated coverage on nine companies, including Jiangling Motors with a rating of "Hold" from Industrial Securities, and Ximai Food with a "Hold" rating from Shanxi Securities [6] - Gao Weida received a "Buy" rating from Dongwu Securities [6] - Other companies receiving coverage include Hengxin Life with a "Hold" rating and Xianglou New Materials with a "Hold" rating [6]

Group 1 - The special steel sector experienced a slight decline of 0.03% on September 22, with Xining Special Steel leading the drop [1] - The Shanghai Composite Index closed at 3828.58, up 0.22%, while the Shenzhen Component Index closed at 13157.97, up 0.67% [1] - Individual stock performance in the special steel sector varied, with Changbao Co. rising by 1.45% and Jiu Li Special Materials falling by 0.36% [1] Group 2 - The net capital outflow from the special steel sector amounted to 51.33 million yuan, while retail investors saw a net inflow of 52.02 million yuan [3] - The table detailing capital flow for individual stocks in the special steel sector was provided, indicating varying levels of investment activity [3]

Core Viewpoint - The report from Dongfang Securities highlights that Jiuli Special Materials achieved a revenue of 6.105 billion yuan in the first half of the year, representing a year-on-year growth of 26.39%, with a net profit of 804 million yuan, up 36.44% year-on-year, indicating strong profit growth [1] Group 1: Financial Performance - Jiuli Special Materials reported a revenue of 6.105 billion yuan, a 26.39% increase compared to the previous year [1] - The company's net profit, excluding Yongxing Investment income, reached 804 million yuan, reflecting a 36.44% year-on-year growth [1] Group 2: Competitive Advantages - The company leverages its technological advantages to break foreign technology monopolies in some high-end products [1] - Jiuli's advanced extrusion process significantly enhances raw material utilization and product quality, contributing to high gross margins that demonstrate cost advantages and strong competitiveness [1] Group 3: Market Outlook and Expansion - The company is optimistic about the application prospects of its products in the context of the growing demand for deep-sea and acidic oil and gas [1] - Jiuli Special Materials is advancing capacity expansion projects, with progress reported at 100% for the corrosion-resistant pipeline project, 40% for the EBK company upgrade, and 35% for the 20,000-ton high-performance pipe project for nuclear and oil and gas applications [1] - The high-end capacity is expected to accelerate release, injecting new growth potential into the company [1] Group 4: Valuation - Using the DCF method for valuation, the target price for Jiuli Special Materials is set at 31.68 yuan, maintaining a "buy" rating [1]

Market Overview - On September 19, the special steel sector declined by 0.35%, with Xianglou New Materials leading the drop [1] - The Shanghai Composite Index closed at 3820.09, down 0.3%, while the Shenzhen Component Index closed at 13070.86, down 0.04% [1] Stock Performance - Key stocks in the special steel sector showed varied performance, with Jinzhou Pipeline up by 2.14% and Xianglou New Materials down by 3.47% [1][2] - The closing prices and changes for notable stocks include: - Jinzhou Pipeline: 7.15, +2.14% - Xianglou New Materials: 63.40, -3.47% - Xining Special Steel: 3.31, +0.61% - Taiyuan Iron & Steel: 3.93, 0.00% [1][2] Trading Volume and Capital Flow - The total trading volume for the special steel sector was significant, with Jinzhou Pipeline achieving a transaction amount of 1.28 billion yuan [1] - The net capital flow showed a net outflow of 403.62 million yuan from main funds, while retail investors had a net inflow of 2328.13 million yuan [2][3] Individual Stock Capital Flow - Notable capital flows for specific stocks include: - Xining Special Steel: Main funds net inflow of 18.89 million yuan, retail net outflow of 39.89 million yuan [3] - Jinzhou Pipeline: Main funds net inflow of 12.61 million yuan, retail net outflow of 6.93 million yuan [3] - Xianglou New Materials: Main funds net outflow of 1.91 million yuan, retail net inflow of 14.58 million yuan [3]

Market Performance - The special steel sector experienced a decline of 2.42% on September 18, with Shengde Xintai leading the drop [1] - The Shanghai Composite Index closed at 3831.66, down 1.15%, while the Shenzhen Component Index closed at 13075.66, down 1.06% [1] Individual Stock Performance - Shengde Xintai (300881) closed at 34.10, down 4.91% with a trading volume of 35,000 shares and a turnover of 122 million yuan [1] - Shagang Group (002075) closed at 5.86, down 3.93% with a trading volume of 849,300 shares and a turnover of 506 million yuan [1] - Fangda Special Steel (600507) closed at 5.32, down 2.92% with a trading volume of 270,500 shares [1] - CITIC Special Steel (000708) closed at 12.72, down 2.90% with a trading volume of 200,300 shares and a turnover of 257 million yuan [1] - Xianglou New Materials (301160) closed at 65.68, down 2.71% with a trading volume of 67,000 shares and a turnover of 452 million yuan [1] Capital Flow Analysis - The special steel sector saw a net outflow of 143 million yuan from main funds, while retail investors contributed a net inflow of 51.37 million yuan [1] - The table of capital flow indicates that Jiuli Special Materials (002318) had a main fund net inflow of 5.58 million yuan, while Shengde Xintai (300881) experienced a significant net outflow of 21.40 million yuan [2]

Core Viewpoint - The continuous innovation in basic raw materials is essential for the industrial upgrade of China's manufacturing sector, with Fushun Special Steel focusing on strategic development in emerging fields such as aerospace and nuclear power [1][2]. Group 1: Company Overview - Fushun Special Steel, established in 1937, is recognized as the "cradle of special steel in China," having produced the country's first high-temperature alloy, ultra-high-strength steel, and stainless steel [2]. - The company joined Shagang Group in 2018, adopting advanced management practices and now boasts the largest special steel furnace group in China, with crude steel capacity of 950,000 tons and steel production capacity of 700,000 tons [2]. Group 2: Product Development and Achievements - The revenue from special steel products has consistently accounted for over 90% from 2021 to mid-2025, with a focus on product iteration and domestic substitution technology during the 14th Five-Year Plan [3]. - In 2022, Fushun Special Steel mass-produced FS450 die-casting mold steel, successfully replacing imports in large die-casting molds for companies like BYD [3]. - The company developed high-nitrogen high-strength martensitic stainless steel and corrosion-resistant alloys, addressing urgent material needs in aerospace and other sectors [3][4]. Group 3: Research and Development - Fushun Special Steel's R&D expenditure has remained above 300 million yuan from 2021 to 2024, with an increase in technical personnel from 491 in 2020 to 581 [5]. - The company’s technology center, established in 1993, has been pivotal in formulating national and military standards and managing numerous national research projects [5]. - The technology center collaborates with various universities and research institutions to enhance product innovation and meet the material demands of downstream industries [5]. Group 4: Industry Standards and Contributions - As a key player in the special steel industry, Fushun Special Steel contributes to the establishment of industry standards and has successfully overseen the approval of multiple national standards [6]. - The company has taken on four new national research projects this year, with ongoing projects totaling 44 [7]. - Fushun Special Steel aims to enhance product quality and production processes through the integration of a product R&D and quality control platform [7].

Market Performance - On September 17, the special steel sector rose by 0.77% compared to the previous trading day, with Shagang Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3876.34, up 0.37%, while the Shenzhen Component Index closed at 13215.46, up 1.16% [1] Individual Stock Performance - Shagang Co., Ltd. (002075) closed at 6.10, with a gain of 3.92% and a trading volume of 1.11 million shares, amounting to a transaction value of 677 million yuan [1] - CITIC Special Steel (000708) closed at 13.10, up 1.63%, with a trading volume of 189,800 shares and a transaction value of 247 million yuan [1] - Fushun Special Steel (600399) closed at 5.42, up 0.37%, with a trading volume of 317,900 shares and a transaction value of 172 million yuan [1] - Other notable performances include Taiyuan Iron & Steel (000825) at 4.01 (up 0.25%) and Jiu Li Special Materials (002318) at 22.19 (up 0.09%) [1] Capital Flow Analysis - The special steel sector experienced a net outflow of 13.12 million yuan from main funds, while retail funds saw a net inflow of 28.99 million yuan [2] - The individual stock capital flow indicates that Shagang Co., Ltd. had a main fund net outflow of 42.04 million yuan, while retail funds saw a net inflow of 4.30 million yuan [3] - Taiyuan Iron & Steel had a main fund net inflow of 14.73 million yuan, while retail funds experienced a net outflow of 1.76 million yuan [3]

Core Viewpoint - The company reported a decline in net profit for Q2 2025, but demonstrated resilience in profitability despite falling lithium prices and maintained a strong cash position [1][2][3] Financial Performance - In Q2 2025, the company achieved a net profit of 209 million yuan, down 30% year-on-year, but up 9% quarter-on-quarter; the non-recurring net profit was 145 million yuan, down 51% year-on-year and down 20% quarter-on-quarter [1] - The company’s lithium salt sales reached approximately 12,050 tons in the first half of 2025, with the average price of battery-grade lithium carbonate at 70,400 yuan per ton, a year-on-year decrease of 32% [2] - The company’s special steel business generated revenue of 2.831 billion yuan in the first half of 2025, a year-on-year decrease of 6.28%, with a gross margin of 11.52%, down 0.79 percentage points year-on-year [2] Business Strategy - The company shifted its sales model to a combination of spot sales and futures to stabilize relationships with quality customers and mitigate price volatility impacts on profitability [2] - The company has a robust cash position with 5.224 billion yuan in cash and minimal long-term debt, resulting in financial income of 11.32 million yuan in Q2 2025 [2][3] Dividend Policy - The company declared a mid-year dividend of 159 million yuan, representing approximately 40% of the net profit for the first half of 2025 [3] Resource and Production Capacity - The company possesses high-quality upstream lithium resources, ensuring stable raw material costs for lithium salt production [3] - The company’s subsidiary holds mining rights with significant reserves of lithium-bearing minerals, which are crucial for lithium production [3] - The company is positioned as a cost-effective lithium producer and is expected to enhance profitability through capacity expansion and a new lithium carbonate project [3]