Report Summary - The report presents the top ten convertible bonds in February 2026, along with detailed information about the issuing companies, including their business scope, financial data, and key attractions [1][6]. Top Ten Convertible Bonds in February 2026 1. Zhongte Convertible Bond - Rating: AAA; 1 - end closing price: 128.153 yuan; conversion premium rate: 73.5%; PE - TTM of the underlying stock: 14.75 [1][8]. - Company: A global leader in special - steel manufacturing with an annual production capacity of about 20 million tons. It has a complete industrial chain and multiple production bases [13]. - Financials: In 2024, revenue was 109.203 billion yuan (-4.22% yoy), net profit attributable to shareholders was 5.126 billion yuan (-10.41% yoy). In the first three quarters of 2025, revenue was 81.206 billion yuan (-2.75% yoy), net profit attributable to shareholders was 4.33 billion yuan (+12.88% yoy) [13]. - Highlights: It is one of the world's most comprehensive special - steel enterprises, with high market shares in core products. It has strong cost - control and is seeking external expansion [14]. 2. Shanlu Convertible Bond - Rating: AAA; 1 - end closing price: 128.472 yuan; conversion premium rate: 54.45%; PE - TTM of the underlying stock: 4.32 [6][8]. - Company: Focused on road and bridge construction and maintenance, and expanding into other fields. It has a complete business system [31]. - Financials: In 2024, revenue was 71.348 billion yuan (-2.3% yoy), net profit attributable to shareholders was 2.322 billion yuan (+1.47% yoy). In the first three quarters of 2025, revenue was 41.354 billion yuan (-3.11% yoy), net profit attributable to shareholders was 1.41 billion yuan (-3.27% yoy) [31]. - Highlights: It has the "China Special Valuation" concept, and its balance sheet and potential orders may improve. It may benefit from infrastructure plans in Shandong and the Belt and Road Initiative [32]. 3. Hebang Convertible Bond - Rating: AA; 1 - end closing price: 153.399 yuan; conversion premium rate: 21.26%; PE - TTM of the underlying stock: -230.95 [6][8]. - Company: With a diversified business layout in chemicals, agriculture, and photovoltaics, it has expanded from a single - product business [44]. - Financials: In 2024, revenue was 8.547 billion yuan (-3.13% yoy), net profit attributable to shareholders was 31 million yuan (-97.55% yoy). In the first three quarters of 2025, revenue was 5.927 billion yuan (-13.02% yoy), net profit attributable to shareholders was 93 million yuan (-57.93% yoy) [44]. - Highlights: Its liquid methionine production has high profitability and is a major profit contributor [47]. 4. Huayuan Convertible Bond - Rating: AA -; 1 - end closing price: 145.282 yuan; conversion premium rate: 9.47%; PE - TTM of the underlying stock: 32.14 [6][8]. - Company: Focused on building a complete vitamin D3 industrial chain, with products in the vitamin and pharmaceutical sectors [58]. - Financials: In 2024, revenue was 1.243 billion yuan (+13.58% yoy), net profit attributable to shareholders was 309 million yuan (+60.76% yoy). In the first three quarters of 2025, revenue was 936 million yuan (-0.2% yoy), net profit attributable to shareholders was 234 million yuan (-3.07% yoy) [58]. - Highlights: It is a leader in certain products, and is expanding its product portfolio and has achievements in pharmaceutical R & D [59]. 5. Xingye Convertible Bond - Rating: AAA; 1 - end closing price: 123.691 yuan; conversion premium rate: 40.16%; PE - TTM of the underlying stock: 5.11 [6][8]. - Company: One of the first joint - stock commercial banks in China, evolving into a modern financial service group [72]. - Financials: In 2024, revenue was 212.226 billion yuan (+0.66% yoy), net profit attributable to shareholders was 77.205 billion yuan (+0.12% yoy). In the first three quarters of 2025, revenue was 161.234 billion yuan (-1.82% yoy), net profit attributable to shareholders was 63.083 billion yuan (+0.12% yoy) [72]. - Highlights: It has stable asset quality and scale growth, with a large customer base [73]. 6. Aima Convertible Bond - Rating: AA; 1 - end closing price: 126.979 yuan; conversion premium rate: 60.87%; PE - TTM of the underlying stock: 10.97 [6][8]. - Company: The leading enterprise in the electric two - wheeler industry, with self - developed and produced products [82]. - Financials: In 2024, revenue was 21.606 billion yuan (+2.71% yoy), net profit attributable to shareholders was 1.988 billion yuan (+5.68% yoy). In the first three quarters of 2025, revenue was 21.093 billion yuan (+20.78% yoy), net profit attributable to shareholders was 1.907 billion yuan (+22.78% yoy) [82]. - Highlights: It may benefit from government subsidies and the implementation of new national standards, and has potential for improving gross margin [83]. 7. Chongyin Convertible Bond - Rating: AAA; 1 - end closing price: 128.332 yuan; conversion premium rate: 16.22%; PE - TTM of the underlying stock: 6.55 [6][8]. - Company: An early - established local joint - stock commercial bank in the upper reaches of the Yangtze River and Southwest China, with a wide range of business operations [92]. - Financials: In 2024, revenue was 13.679 billion yuan (+3.54% yoy), net profit attributable to shareholders was 5.117 billion yuan (+3.8% yoy). In the first three quarters of 2025, revenue was 11.74 billion yuan (+10.4% yoy), net profit attributable to shareholders was 4.879 billion yuan (+10.19% yoy) [92]. - Highlights: It may benefit from the development of the Chengdu - Chongqing economic circle, has stable asset growth, and has a good risk - control strategy [93][96]. 8. Tianye Convertible Bond - Rating: AA+; 1 - end closing price: 141.695 yuan; conversion premium rate: 26.15%; PE - TTM of the underlying stock: 163.89 [6][8]. - Company: A leading enterprise in the chlor - alkali chemical industry in Xinjiang, with an integrated circular economy industrial chain [105]. - Financials: In 2024, revenue was 11.156 billion yuan (-2.7% yoy), net profit attributable to shareholders was 68 million yuan (+108.83% yoy). In the first three quarters of 2025, revenue was 7.97 billion yuan (+2.2% yoy), net profit attributable to shareholders was 7 million yuan (-28.79% yoy) [105]. - Highlights: It benefits from cost - reduction in raw materials and plans to increase dividend frequency, and its group is promoting coal - mine projects [107]. 9. Aorui Convertible Bond - Rating: AA -; 1 - end closing price: 160.557 yuan; conversion premium rate: 39.57%; PE - TTM of the underlying stock: 27.45 [6][8]. - Company: Focused on the R & D, production, and sales of complex APIs and formulations, leading in certain technical fields [120]. - Financials: In 2024, revenue was 1.476 billion yuan (+16.89% yoy), net profit attributable to shareholders was 355 million yuan (+22.59% yoy). In the first three quarters of 2025, revenue was 1.237 billion yuan (+13.67% yoy), net profit attributable to shareholders was 354 million yuan (+24.58% yoy) [120]. - Highlights: It is optimizing its distribution network, expanding the market for its formulation products, and has high - quality customer resources [121]. 10. Yushui Convertible Bond - Rating: AAA; 1 - end closing price: 128.343 yuan; conversion premium rate: 35.36%; PE - TTM of the underlying stock: 26.26 [6][8]. - Company: The largest water supply and drainage integrated enterprise in Chongqing, with a monopoly position in the local market [134]. - Financials: In 2024, revenue was 6.999 billion yuan (-3.52% yoy), net profit attributable to shareholders was 785 million yuan (-27.88% yoy). In the first three quarters of 2025, revenue was 5.568 billion yuan (+7.21% yoy), net profit attributable to shareholders was 779 million yuan (+7.1% yoy) [134]. - Highlights: It has a high market share, is expanding its business scope, and has achieved cost - control through intelligent applications [135]. Related Reports - "Pricing of Naipu Convertible Bond 02: First - day conversion premium rate of 28% - 33%", released on January 27, 2026 [3]. - "Pricing of Shangtai Convertible Bond: First - day conversion premium rate of 40% - 45%", released on January 27, 2026 [3]. - "Pricing of Lianrui Convertible Bond: First - day conversion premium rate of 43% - 48%", released on January 15, 2026 [3]. - "Outlook for US Inflation in 2026: High at first, then low, overall controllable", released on January 12, 2026 [3].

Market Overview - The special steel sector experienced a decline of 7.3% on February 2, with CITIC Special Steel leading the drop [1] - The Shanghai Composite Index closed at 4015.75, down 2.48%, while the Shenzhen Component Index closed at 13824.35, down 2.69% [1] Stock Performance - CITIC Special Steel (000708) closed at 14.78, down 9.99% with a trading volume of 449,200 shares and a transaction value of 685 million yuan [1] - Fangda Special Steel (600507) closed at 5.93, down 8.49% with a trading volume of 752,300 shares [1] - Taiyuan Iron & Steel (000825) closed at 4.82, down 7.84% with a trading volume of 1,597,700 shares [1] - Other notable declines include Jiuli Special Materials (002318) down 5.80%, Shagang Group (002075) down 5.56%, and Xining Special Steel (600117) down 4.83% [1] Capital Flow - The special steel sector saw a net outflow of 60.03 million yuan from main funds, while retail funds experienced a net outflow of 102 million yuan [1] - However, there was a net inflow of 162 million yuan from speculative funds [1] Individual Stock Capital Flow - Taiyuan Iron & Steel (000825) had a main fund net inflow of 15.79 million yuan, while retail funds saw a net outflow of 37.95 million yuan [2] - Jiuli Special Materials (002318) recorded a main fund net inflow of 10.71 million yuan, with retail funds experiencing a net outflow of 29.56 million yuan [2] - Shagang Group (002075) had a main fund net inflow of 5.83 million yuan, but retail funds saw a significant net outflow of 54.47 million yuan [2] - CITIC Special Steel (000708) reported a main fund net outflow of 643,900 yuan, with a small net inflow from speculative funds [2]

Market Overview - The special steel sector experienced a decline of 0.17% on January 30, with Fushun Special Steel leading the drop [1] - The Shanghai Composite Index closed at 4117.95, down 0.96%, while the Shenzhen Component Index closed at 14205.89, down 0.66% [1] Stock Performance - Notable stock performances include: - CITIC Special Steel (000708) closed at 16.42, up 3.27% with a trading volume of 326,800 shares and a turnover of 531 million yuan [1] - Fangda Special Steel (600507) closed at 6.48, up 1.09% with a trading volume of 760,700 shares and a turnover of 494 million yuan [1] - Fushun Special Steel (6652009) closed at 6.54, down 4.11% with a trading volume of 1,332,900 shares and a turnover of 867.1 million yuan [2] Capital Flow - The special steel sector saw a net outflow of 196 million yuan from institutional investors, while retail investors had a net inflow of 159 million yuan [2] - The capital flow for specific stocks includes: - Fangda Special Steel had a net inflow of 19.57 million yuan from institutional investors [3] - CITIC Special Steel experienced a net outflow of 21.09 million yuan from speculative funds [3] - Shagang Co. (002075) had a net outflow of 5.42 million yuan from institutional investors [3]

Core Viewpoint - The company Guangda Special Materials announced an expected increase in net profit for the fiscal year 2025, projecting a net profit of approximately 210 million yuan, which represents an increase of about 95 million yuan compared to the previous year, reflecting a year-on-year growth of approximately 82.61% [2] Financial Performance - The projected net profit for 2025 is around 210 million yuan [2] - This represents an increase of approximately 95 million yuan compared to the same period last year [2] - The year-on-year growth rate is estimated to be around 82.61% [2]

Market Overview - The special steel sector experienced a decline of 0.39% on January 29, with Changbao Co. leading the drop [1] - The Shanghai Composite Index closed at 4157.98, up 0.16%, while the Shenzhen Component Index closed at 14300.08, down 0.3% [1] Stock Performance - Notable stock performances in the special steel sector include: - CITIC Special Steel (000708) closed at 15.90, up 1.47% with a trading volume of 265,300 shares and a turnover of 419 million yuan [1] - Fangda Special Steel (600507) closed at 6.41, up 0.94% with a trading volume of 678,000 shares and a turnover of 439 million yuan [1] - Fushun Special Steel (600399) closed at 6.82, up 0.44% with a trading volume of 1,043,200 shares and a turnover of 721 million yuan [1] - Changbao Co. (002478) closed at 9.82, down 4.01% with a trading volume of 541,800 shares and a turnover of 546 million yuan [2] Capital Flow Analysis - The special steel sector saw a net outflow of 82.17 million yuan from institutional investors, while retail investors had a net inflow of 84.75 million yuan [2] - Detailed capital flow for selected stocks includes: - CITIC Special Steel had a net inflow of 47.09 million yuan from institutional investors [3] - Changbao Co. experienced a net outflow of 21.95 million yuan from institutional investors [3] - Retail investors contributed a net inflow of 50 million yuan to Changbao Co. [3]

Core Viewpoint - The company expects to achieve approximately 4.92 billion yuan in operating revenue for the fiscal year 2025, representing a year-on-year increase of about 22.91% [1] - The projected net profit attributable to the parent company is around 210 million yuan, reflecting a year-on-year increase of approximately 82.61% [1] - The net profit attributable to the parent company, excluding non-recurring gains and losses, is expected to be about 200 million yuan, indicating a year-on-year increase of around 170.27% [1] Revenue and Profit Growth - The company anticipates a significant increase in operating revenue due to overall positive demand in downstream industries and proactive customer order expansion by the marketing department [1] - The company has implemented internal product structure optimization and cost reduction measures, leading to an improvement in overall gross margin and enhanced profitability [1]

Core Viewpoint - The company expects a significant increase in net profit for 2025, driven by improved demand in downstream industries and effective internal measures [1] Group 1: Profit Forecast - The company anticipates a net profit attributable to shareholders of approximately 210 million yuan for 2025, representing a year-on-year increase of about 82.61% [1] - The expected net profit, excluding non-recurring gains and losses, is around 200 million yuan, reflecting a year-on-year growth of approximately 170.27% [1] Group 2: Revenue Growth - The company reports a revenue growth of approximately 22.91% year-on-year, attributed to the overall improvement in demand within the industry and proactive customer order expansion by the marketing department [1] Group 3: Cost and Efficiency Improvements - The company has optimized its internal product structure in response to market changes and implemented cost reduction and efficiency enhancement measures, leading to an increase in overall gross margin and improved profitability [1] Group 4: Project Contributions - The benefits from fundraising projects are becoming evident, with the wind power gearbox component project gradually releasing production capacity, significantly increasing the average utilization rate of machining equipment, and contributing to the company's processing output [1] - The offshore wind power casting project has achieved profitability through various technical modifications, production line optimizations, cost reductions, and product diversification, resulting in full-load operation of the melting production line [1]

Core Viewpoint - Wuxi, Jiangsu Province, has undergone a significant ecological transformation, redefining the concept of "beautiful Taihu" through a systematic approach to environmental protection and sustainable development, achieving notable improvements in water quality and pollution control over the past 18 years [1][2]. Group 1: Ecological Transformation and Water Quality Improvement - The water quality of Taihu in Wuxi has reached Class III for the first time in nearly 30 years, with all major inflowing rivers achieving Class II total phosphorus concentration by 2025 [1][2]. - Wuxi has invested over 100 billion yuan annually in Taihu governance since the 14th Five-Year Plan, completing 993 key projects aimed at improving water quality [2][3]. - Continuous ecological dredging has led to the removal of over 37 million cubic meters of sediment since 2007, with 5 million cubic meters removed in 2025 alone [2]. Group 2: Pollution Control and Governance - Wuxi has implemented a comprehensive pollution source investigation and remediation action plan, including the construction of 11 industrial wastewater treatment facilities and the renovation of 93.58 kilometers of sewage pipelines [3]. - The city has completed 46,400 acres of comprehensive management of aquaculture ponds, focusing on reducing agricultural non-point source pollution [3]. - A full-chain governance system has been established, focusing on source control, process optimization, and end-of-pipe treatment [5]. Group 3: Economic Growth and Ecological Benefits - In 2024, Wuxi received 146 million tourists, a 15.2% increase, with a significant rise in inbound tourism exceeding 70% [4]. - The transformation of the ecological environment has led to diverse pathways for the value realization of ecological products, reinforcing the principle that "green mountains and clear waters are invaluable assets" [4][8]. Group 4: Systematic Governance and Technological Innovation - Wuxi has developed a "three-center" system for VOCs control and hazardous waste resource utilization, significantly reducing emissions and improving operational efficiency [6][7]. - The city has implemented AI technology in environmental monitoring, enhancing data analysis and response efficiency in pollution management [13][14]. - A new regulatory approach utilizing non-site enforcement and advanced monitoring technologies has been adopted, resulting in a significant increase in the detection and handling of environmental violations [14]. Group 5: Biodiversity and Ecological Protection - Wuxi has recorded 3,810 species of biodiversity, representing 41.11% of the total recorded species in Jiangsu Province, highlighting the region's ecological richness [11][12]. - The city has initiated multiple biodiversity observation networks and collaborative ecological protection efforts with neighboring cities [12]. Group 6: Future Plans and Sustainable Development - Wuxi is planning the "15th Five-Year" ecological environment protection blueprint, focusing on systematic governance, source control, and collaborative efforts to enhance environmental quality [15][16]. - Key actions include promoting green and low-carbon transitions, comprehensive governance of Taihu, and enhancing biodiversity protection [15].

Investment Rating - The report maintains a "Strong Buy" rating for the company [1] Core Views - The company is a key supplier of stainless steel armor for fusion magnets, with potential demand in emerging industries possibly underestimated [7] - The company has a competitive advantage in the superconducting magnet segment, particularly with its stainless steel armor products, which are essential components of superconducting magnet systems [6][8] - The report highlights the expected capital expenditure expansion cycle in the controlled nuclear fusion industry, which may lead to increased orders across the supply chain [34] Financial Summary - Projected total revenue (in million) for 2024A is 10,918, with a year-on-year growth of 27.4%. For 2025E, it is expected to be 11,795, with a growth of 8.0%. However, a decline of 8.7% is anticipated for 2026E, followed by a slight increase of 2.2% in 2027E [2] - The projected net profit attributable to shareholders (in million) for 2024A is 1,490, with a minimal growth of 0.1%. For 2025E, it is expected to be 1,540, with a growth of 3.3%. A decline of 12.7% is expected for 2026E, followed by a recovery of 16.3% in 2027E [2] - The target price range for the company is set between 40.0 and 48.0 yuan, indicating a potential upside of 13% to 35% from the current price of 35.43 yuan [2][9] Industry Analysis Controlled Nuclear Fusion Sector - The company’s stainless steel armor products are crucial for superconducting magnet systems, which are essential for the Tokamak devices, the leading technology in nuclear fusion [13][21] - The company has secured a significant project with the Chinese Academy of Sciences for stainless steel armor, valued at 58.168 million yuan, showcasing its strong supply capabilities [30] Nuclear Power Industry - The nuclear power sector in China is expected to see substantial growth, with projections indicating the need for 10 GW of new nuclear power installations annually from 2025 to 2030 [56] - The company is a key supplier of U-shaped pipes for third-generation nuclear power plants and is strategically positioned in the fourth-generation nuclear technology space [56][60] Aerospace Sector - The company has launched a production line for aerospace-grade pipes, establishing a first-mover advantage in the supply chain [8] Traditional Downstream Sector - The oil and gas industry shows long-term demand potential, with the company possessing advanced technology for nickel-based alloy oil well pipes [8]

Market Performance - The special steel sector increased by 1.53% on January 28, with Jiuli Special Materials leading the gains [1] - The Shanghai Composite Index closed at 4151.24, up 0.27%, while the Shenzhen Component Index closed at 14342.9, up 0.09% [1] Stock Performance - Jiuli Special Materials (002318) closed at 35.43, up 7.36% with a trading volume of 206,200 shares and a transaction value of 698 million [1] - Other notable performers include: - Taiyuan Iron & Steel (000825) at 5.52, up 2.99% [1] - Fangda Special Steel (600507) at 6.35, up 2.25% [1] - Xining Special Steel (600117) at 2.98, up 1.36% [1] - Conversely, Changbao Co. (002478) and Jinzou Pipeline (002443) saw declines of 0.87% and 1.11%, respectively [1] Capital Flow - The special steel sector experienced a net outflow of 23.98 million from institutional investors and 18.07 million from retail investors, while retail investors saw a net inflow of 42.05 million [2] - The detailed capital flow for individual stocks indicates that Jiuli Special Materials had a net inflow of 21.80 million from institutional investors [3] - Other stocks with significant net inflows include: - Taiyuan Iron & Steel with 14.52 million [3] - Fangda Special Steel with 12.80 million [3] - Notably, Xining Special Steel had a net inflow of 6.99 million from institutional investors [3]