Investment Rating - The report maintains an investment rating of "Buy-A" for the company [4]. Core Views - The company has demonstrated a strong growth trajectory in the first half of 2025, with a year-on-year increase in revenue of 8.85% to 1.473 billion yuan and a significant rise in net profit of 70.98% to 172 million yuan [1][2]. - The business structure has been optimized, leading to improved profitability across its segments, particularly in high-margin products [2][9]. - The company is positioned as a leading player in the pre-stressed steel materials and high-speed rail slab sectors, with a robust product matrix and a focus on high-value products [9]. Revenue and Profitability - In H1 2025, the pre-stressed materials segment generated revenue of 1.158 billion yuan, accounting for 78.58% of total revenue, while the concrete products segment contributed 213 million yuan, representing 14.45% [2]. - The gross margin for the company improved to 24.26%, up 8.14 percentage points year-on-year, driven by enhanced margins in both pre-stressed materials and concrete products [3]. - The net profit margin for the pre-stressed materials segment was 11.23%, while the concrete products segment achieved a remarkable net profit margin of 20.19% [3]. Cash Flow and Financial Health - The operating cash flow showed significant improvement in Q2 2025, with a net inflow of 106 million yuan, compared to a net outflow of 77.5 million yuan in Q2 2024 [8]. - As of H1 2025, accounts receivable amounted to 2.245 billion yuan, with over 80% being due within one year, indicating a healthy cash collection cycle [8]. Earnings Forecast and Valuation - The company is expected to achieve revenues of 3.519 billion yuan, 4.022 billion yuan, and 4.545 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 15.2%, 14.3%, and 13.0% [11]. - Net profit forecasts for the same period are 357 million yuan, 472 million yuan, and 567 million yuan, reflecting growth rates of 51.0%, 31.9%, and 20.3% [11]. - The report sets a 12-month target price of 12.14 yuan, based on a projected PE ratio of 22 times for 2026 [9].

Core Viewpoint - The company reported strong financial performance in Q1 2025, with significant year-over-year growth in both revenue and net profit, indicating robust operational resilience and effective cost management [1][2][4]. Financial Performance - In Q1 2025, the company achieved revenue of 585 million yuan, representing a year-over-year increase of 23.70%, marking the highest quarterly revenue growth since 2022 [1][2]. - The net profit attributable to shareholders reached 70 million yuan, reflecting a substantial year-over-year increase of 76.97%, driven by improved gross margins and effective control of operating expenses [1][2]. Profitability Metrics - The gross margin for Q1 2025 was 23.82%, an increase of 1.92 percentage points year-over-year, attributed to an optimized business structure and a higher proportion of high-value products [3]. - The net profit margin improved significantly to 12.48%, up 4.06 percentage points year-over-year, benefiting from both gross margin enhancement and a notable reduction in the expense ratio, which decreased by 5.58 percentage points to 9.76% [3]. Growth Outlook - The company is positioned as a leading player in the prestressed steel and track slab sectors, with a comprehensive product matrix and strong technical and brand capabilities [4]. - The company is expected to continue its growth trajectory, with projected revenues of 3.651 billion yuan, 4.222 billion yuan, and 4.804 billion yuan for 2025-2027, reflecting year-over-year growth rates of 19.6%, 15.6%, and 13.8% respectively [4]. - Net profit forecasts for the same period are 331 million yuan, 433 million yuan, and 525 million yuan, with year-over-year growth rates of 39.8%, 30.8%, and 21.2% respectively [4].