Core Viewpoint - The development of DHA1 mold steel represents a significant breakthrough in China's high-end mold steel sector, reducing reliance on imports and showcasing the country's capabilities in advanced material innovation [1][7]. Material Characteristics - DHA1 mold steel features a unique alloy composition with 5.5-6.5% chromium, 2.0-3.0% molybdenum, and 0.8-1.2% vanadium, achieving an optimal balance of hardness and toughness [2]. - The addition of niobium allows DHA1 to maintain a hardness of HRC45 or above at 600°C, outperforming traditional H13 steel by approximately 15% [2]. Heat Treatment Process - The optimal heat treatment process involves oil quenching at 1030-1050°C followed by secondary tempering at 520-550°C, resulting in a fatigue life exceeding 30,000 cycles, which is about 20% better than imported counterparts [4]. - In practical applications, DHA1 mold steel has shown a lifespan extension of 30-40% in aluminum alloy die-casting compared to traditional materials, allowing for over 150,000 casting operations per mold [4]. Application Areas - DHA1 has demonstrated versatility in various applications, including the production of large structural components for electric vehicles and precision plastic molds, significantly extending maintenance cycles and reducing production costs [4][5]. - In the aerospace sector, DHA1 has outperformed imported materials in high-temperature oxidation resistance, increasing mold lifespan by over 25% [5]. Market Feedback - DHA1's market price ranges from 48,000 to 52,000 yuan per ton, which, while higher than standard H13 steel, offers over 30% savings compared to similar performance imported materials [5]. - By 2024, DHA1 is expected to capture an 18% market share in China's high-end mold steel sector, with projections to exceed 25% by 2025 [5]. Industry Impact - The successful development of DHA1 has spurred collaborative innovation across the supply chain, with upstream steel manufacturers and downstream toolmakers working together to enhance production processes [5]. - The project has received significant recognition, including the "Metallurgical Science and Technology Award" from the China Iron and Steel Association in 2024, highlighting its technological advancements [6]. Global Market Position - DHA1's emergence is reshaping the global mold steel market, traditionally dominated by Swedish, German, and Japanese firms, with expectations to capture 15% of the high-end mold steel market within three years [6]. - The ongoing challenges include maintaining quality during mass production and establishing internationally recognized material standards [6]. Broader Implications - The success of DHA1 symbolizes China's ascent in high-end manufacturing, demonstrating the potential for domestic innovation to compete on a global scale [7]. - With continued support from national policies, similar innovations are anticipated to emerge, reinforcing the foundation for high-quality development in China's manufacturing sector [7].

恒而达（300946）今日晚间公告，公司与天工国际(00826.HK)7月16日签订了《战略合作框架协议》。 双方将以"长期合作、互利共赢、共同发展"为宗旨，整合双方优势资源，在技术创新、产业链协同与市 场开拓等领域开展深度合作。 此外双方还计划在高氮钢在行星滚柱丝杠制造领域运用、金属切削刀具连续热处理生产工艺、产业链联 合投资等领域进行合作。 恒而达表示，协议的签署将助力公司进一步巩固"横向拓宽"(产品系列化、产品矩阵)与"纵向延伸"(智能 数控装备、滚动功能部件及上游高强韧轻量化金属材料)的业务架构，同时加快公司滚珠丝杠副及行星 滚柱丝杠副等滚动功能部件产品的研发及产业化速度，加速突破制约国内滚动功能部件加工精度、加工 效率、良品率等关键的生产工艺和核心装备环节，提升公司在智能数控装备及滚动功能部件领域的国际 综合竞争力。 恒而达董事长林正华在签约仪式中强调："单打独斗难以快速实现国产化重大突破，天工国际作为志同 道合的战略伙伴加入，让我们对推动行业进步充满信心。"天工国际董事局主席朱小坤表示，此次携手 合作，不仅是双方资源互补、优势互联的深度融合，更是共同服务高端制造、加快国产化进程的重要战 略举措。 ...

Group 1 - The company expects a net loss of between -3 billion to -2.6 billion for the first half of 2025, a year-on-year decrease of 214.06% to 231.60% [1] - The main reasons for the expected loss include a decline in product orders and prices due to market demand, lower-than-expected production from new projects, and increased quality control costs [1] - In 2024, the company produced 603,900 tons of steel, a decrease of 10.91% year-on-year, and achieved an operating income of 8.484 billion, a decrease of 1.06% year-on-year [2] Group 2 - The company reported a net profit of -1.25 billion in Q1 2025, compared to a profit of 1.15 billion in the same period last year [2] - The company is focusing on high-value-added products, with a continuous increase in their production to stabilize revenue despite a decrease in overall steel production [2] - The company exports mainly tool steel and automotive steel, with significant growth in exports to Europe and Southeast Asia, generating approximately 30 million USD in annual export revenue [3]

Core Viewpoint - Company has significantly increased production and sales of steel in 2024 compared to the previous year, indicating a strong operational performance despite the overall industry challenges [2][8]. Production and Sales - In 2024, the company produced 1.2768 million tons of iron, a year-on-year increase of 90.25% - Steel production reached 1.3969 million tons, with an increase of 89.17% - Steel product output was 1.3571 million tons, reflecting a 94.63% increase, showcasing a significant improvement in capacity utilization [2]. Government Support - The company has received substantial support from local government, including tax incentives and subsidies [3]. Business Expansion Plans - The company is open to asset injection plans to expand its steel business, adhering to regulatory disclosure requirements [4]. Product Development - The company has adjusted its product mix in response to changing customer demands, focusing on eight main categories of steel products [5]. - There is a growing emphasis on product quality, with the company investing in quality assurance to meet higher customer expectations [6]. Equipment and Investment - The company is progressively updating its equipment according to an annual plan, with specific investment details available in public announcements [7]. Financial Performance - In 2024, the company achieved revenue of 5.717 billion yuan, a year-on-year growth of 15.75% - The company reported a net loss of 959 million yuan, although this represents a significant narrowing of losses compared to the previous year [8]. Market Strategy - The company is implementing strategies to enhance profitability and operational vitality, including the restoration of various production lines [9]. - The company currently does not own any mines and is focusing on cost control through management optimization and procurement strategies [10]. Environmental Initiatives - The company is committed to environmental upgrades and aims to reduce pollution as part of its corporate social responsibility [13]. Industry Context - The steel industry is facing complex challenges, but there are opportunities for high-end steel demand growth due to the rise of advanced manufacturing sectors [12]. - The company is positioned as a significant player in the special steel market in the western region, despite ongoing losses due to industry-wide downturns [12].

Investment Rating - The report assigns a "Buy" rating to the company [3][5]. Core Views - The company is a global leader in the specialty steel segment, with four synergistic business lines: tool steel, high-speed steel, cutting tools, and titanium alloys [3][20]. - The company has successfully broken the overseas monopoly in powder metallurgy and is positioned to benefit from the growing demand in high-end manufacturing sectors such as robotics and aerospace [19][65]. - The company has a strong focus on R&D, with significant investments aimed at enhancing its competitive edge in high-end materials [35][39]. Summary by Sections Global Specialty Steel Leader - Established in 1981, the company has evolved from cutting tools to high-speed steel, mold steel, and titanium alloys, achieving vertical integration in the high-speed steel cutting tool industry [20][21]. - The company launched China's first large-scale powder metallurgy production line in 2019, becoming the only domestic enterprise capable of large-scale production in this field [20][21]. Powder Metallurgy - The company is tapping into a vast domestic replacement market for powder metallurgy, with applications in aerospace and automotive sectors [2][19]. - Current production capacity for powder metallurgy has reached 5,000 tons, with plans to expand to 10,000 tons [2][66]. - The company has developed a new high-nitrogen steel patent, which is expected to penetrate high-end markets such as aerospace and robotics [2][19]. Titanium Alloys - The company is entering the 3C (computer, communication, consumer electronics) market, leveraging the lightweight and high-strength properties of titanium alloys [2][19]. - Production capacity for titanium alloys has reached 7,000 tons, with plans for an IPO to further expand operations [2][19]. Financial Forecast - The company is projected to generate revenues of 5.1 billion, 5.6 billion, and 6.0 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding net profits of 464 million, 533 million, and 577 million yuan [3][30]. - The expected price-to-earnings ratios for these years are 11.18, 9.73, and 8.99, indicating strong growth potential [3][30]. Market Perception - The market tends to view the company through the lens of traditional steel manufacturing, overlooking its differentiated competitive advantages in specialty steel [17][18]. - The company is expected to benefit from the structural growth in the specialty steel sector, which is less sensitive to macroeconomic fluctuations compared to traditional steel [18][19].

Group 1 - The company operates in the special steel and alloy materials sector, focusing on high-temperature alloys, ultra-high-strength steel, stainless steel, and tool steel, with applications in aerospace, energy, petrochemicals, and transportation [8][14][15] - The company reported a steel production of 603,900 tons in 2024, a decrease of 10.91% year-on-year, and a steel product output of 440,500 tons, down 13.04% year-on-year, while "three high and one special" products increased by 14.25% [18] - The company achieved an operating income of 8.484 billion yuan, a decrease of 1.06% year-on-year, and a net profit of 112 million yuan, down 69.18% year-on-year [18] Group 2 - The steel industry in China is facing overcapacity and weak demand, with traditional sectors like real estate and infrastructure showing only a "weak recovery," while emerging demands in new energy and electric vehicles are growing [4][3] - The global crude steel production in 2024 is projected to be 1.883 billion tons, a year-on-year decrease of 0.8%, with China's crude steel output at 1.005 billion tons, a slight decline [3] - The special steel industry is experiencing intensified competition in mid-low and mid-high-end products, while high-end products still lag behind developed countries in quality and stability [6][7] Group 3 - The company has established long-term procurement agreements with quality suppliers for raw materials, ensuring stable supply channels [10] - The production model is based on customer orders, with a focus on efficiency and flexibility in production planning [11] - The company has implemented a quality monitoring system certified by ISO9001 and AS9100, enhancing its quality management capabilities [13] Group 4 - The company plans to distribute a cash dividend of 0.018 yuan per share, totaling approximately 35.32 million yuan, which accounts for 31.62% of the net profit attributable to shareholders [1] - The company is seeking a comprehensive credit facility of up to 6.5 billion yuan for operational funding in 2025 [46][79] - The company has proposed to continue its bill pool business with a limit of 800 million yuan to improve liquidity and reduce management costs [49][81]