Investment Rating - The report maintains a "Buy" rating for the company, citing its leading position in the special steel industry and improving capacity integration capabilities [4][6]. Core Views - The company reported a revenue of 54.715 billion yuan for the first half of 2025, a decrease of 4.02% year-on-year, while net profit attributable to shareholders was 2.798 billion yuan, an increase of 2.67% year-on-year [1]. - The company's profitability is gradually recovering, with a net profit of 1.414 billion yuan in Q2 2025, reflecting a year-on-year increase of 3.58% and a quarter-on-quarter increase of 2.21% [2]. - The demand for high-quality special steel is expected to continue growing due to the rapid development of new energy vehicles and the lightweight trend in traditional automobiles, as well as upgrades in high-end equipment manufacturing and energy sectors [2]. Financial Performance - In the first half of 2025, the company achieved steel sales of 9.8226 million tons, a year-on-year increase of 3.23%, with specific product sales such as bearing steel increasing by 13.2% [3]. - The gross margin for special steel products was 14.37%, an increase of 2.07 percentage points year-on-year, with alloy steel bars and seamless steel pipes showing significant improvements in gross margins [3]. - The company aims to achieve an export volume of 2.65 million tons in 2025, representing a year-on-year growth of 20.3% [3]. Financial Projections - The company is projected to achieve net profits of 5.98 billion yuan, 6.5 billion yuan, and 6.86 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 10.6, 9.7, and 9.2 [4][5].