Group 1: Report Information - Date of the report: September 15, 2025 [2] - Researchers: Yu Dian, Tao Cunhui, Xue Yuan, Shen Yumeng, Zhong Hong [2] Group 2: Industry Investment Rating - No information provided Group 3: Core View - No information provided Group 4: Data Summary Production - Actual production of Angle and Channel Steel on September 12, 2025, was 34.12 tons, a week - on - week increase of 16.16 tons compared to September 5 [2] - Actual production of H - shaped Steel on September 12, 2025, was 31.5 tons, a week - on - week increase of 5.8 tons [2] - Actual production of Color - coated Steel Coils on September 12, 2025, was 16.59 tons, a week - on - week increase of 0.14 tons [2] - Actual production of Galvanized Steel Coils on September 12, 2025, was 88.47 tons, a week - on - week increase of 0.37 tons [2] - The combined actual production of Angle and Channel Steel, H - shaped Steel, Color - coated Steel Coils, and Galvanized Steel Coils on September 12, 2025, was 170.7 tons, a week - on - week increase of 22.47 tons [2] Apparent Demand - Apparent demand for Angle and Channel Steel on September 12, 2025, was 30.3 tons, a week - on - week increase of 8.19 tons [2] - Apparent demand for H - shaped Steel on September 12, 2025, was 30.5 tons, a week - on - week increase of 4.99 tons [2] - Apparent demand for Color - coated Steel Coils on September 12, 2025, was 17 tons, a week - on - week increase of 1.34 tons [2] - Apparent demand for Galvanized Steel Coils on September 12, 2025, was 84.9 tons, a week - on - week increase of 1.28 tons [2] - The combined apparent demand for Angle and Channel Steel, H - shaped Steel, Color - coated Steel Coils, and Galvanized Steel Coils on September 12, 2025, was 162.8 tons, a week - on - week increase of 15.8 tons [2] Inventory Steel Mill Inventory - Steel mill inventory of Angle and Channel Steel on September 12, 2025, was 97.64 tons, a week - on - week increase of 4.64 tons [2] - Steel mill inventory of H - shaped Steel on September 12, 2025, was 19.74 tons, a week - on - week increase of 1.1 tons [2] - Steel mill inventory of Color - coated Steel Coils on September 12, 2025, was 16.04 tons, a week - on - week increase of 0.02 tons [2] - Steel mill inventory of Galvanized Steel Coils on September 12, 2025, was 47.32 tons, a week - on - week increase of 1.02 tons [2] - The combined steel mill inventory of Angle and Channel Steel, H - shaped Steel, Color - coated Steel Coils, and Galvanized Steel Coils on September 12, 2025, was 180.7 tons, a week - on - week increase of 6.78 tons [2] Social Inventory - Social inventory of Angle and Channel Steel on September 12, 2025, was 58.65 tons, a week - on - week decrease of 0.78 tons [2] - Social inventory of H - shaped Steel on September 12, 2025, was 64.79 tons, a week - on - week decrease of 0.14 tons [2] - Social inventory of Color - coated Steel Coils on September 12, 2025, was 25.61 tons, a week - on - week decrease of 0.45 tons [2] - Social inventory of Galvanized Steel Coils on September 12, 2025, was 123.5 tons, a week - on - week increase of 2.52 tons [2] - The combined social inventory of Angle and Channel Steel, H - shaped Steel, Color - coated Steel Coils, and Galvanized Steel Coils on September 12, 2025, was 272.6 tons, a week - on - week increase of 1.15 tons [2] Total Inventory - Total inventory of Angle and Channel Steel on September 12, 2025, was 156.3 tons, a week - on - week increase of 3.86 tons [2] - Total inventory of H - shaped Steel on September 12, 2025, was 84.5 tons, a week - on - week increase of 0.96 tons [2] - Total inventory of Color - coated Steel Coils on September 12, 2025, was 41.65 tons, a week - on - week decrease of 0.43 tons [2] - Total inventory of Galvanized Steel Coils on September 12, 2025, was 170.82 tons, a week - on - week increase of 3.54 tons [2] - The combined total inventory of Angle and Channel Steel, H - shaped Steel, Color - coated Steel Coils, and Galvanized Steel Coils on September 12, 2025, was 453.3 tons, a week - on - week increase of 7.93 tons [2] Other Inventory - Steel billet inventory in mainstream warehouses on September 12, 2025, was 136.4 tons, a week - on - week decrease of 5.75 tons [2] - Steel billet inventory in 61 Tangshan steel - rolling enterprises on September 12, 2025, was 61.1 tons, a week - on - week increase of 1.42 tons [2] - The combined steel billet inventory was 197.5 tons, a week - on - week decrease of 4.33 tons [2] - Inventory of Hot - rolled Strip Steel in steel mills on September 12, 2025, was 36.86 tons, a week - on - week increase of 0.56 tons [2] - Social inventory of Hot - rolled Strip Steel on September 12, 2025, was 91.6885 tons, a week - on - week increase of 1.85 tons [2] - Inventory of High - quality Special Steel in steel mills on September 12, 2025, was 141.5 tons, a week - on - week decrease of 0.61 tons [2] - Social inventory of High - quality Special Steel on September 12, 2025, was 129.93 tons, a week - on - week decrease of 1.76 tons [2] - Social inventory of Welded Pipe on September 12, 2025, was 81.02 tons, a week - on - week decrease of 0.41 tons [2] - Social inventory of Seamless Pipe on September 12, 2025, was 69.28 tons, a week - on - week increase of 0.63 tons [2] - The total inventory of sample small - variety steel on September 12, 2025, was 1201.1 tons, a week - on - week increase of 3.8582 tons [2]

Core Insights - The company reported a revenue of 24.888 billion yuan for the first half of 2025, representing a year-on-year decrease of 5.81% [1] - The net profit attributable to shareholders was 287 million yuan, showing a significant year-on-year increase of 160.36% [1] - Basic earnings per share were reported at 0.21 yuan [1] Revenue Analysis - The decline in revenue is attributed to a combination of factors including a slowdown in actual demand and changes in the international trade environment [1] - The first quarter saw a positive outlook in the welded pipe market due to favorable policies and support from raw material prices, leading to price fluctuations [1] - In the second quarter, the market faced downward price adjustments driven by reduced demand and falling raw material prices [1] Profitability Insights - The substantial increase in net profit is notable despite the decline in revenue, indicating effective cost management or other operational efficiencies [1] - The company's ability to achieve a profit growth of over 160% suggests resilience in its business model amid challenging market conditions [1]

Core Viewpoint - The company Changbao Co., Ltd. has transitioned its special material projects into the trial production phase, indicating progress in its production capabilities and market readiness [1] Group 1: Project Development - The high-end alloy pipeline, ultra-long precision pipe main line, and clean bright pipe main line have entered the trial production phase [1] - The hot extrusion line is currently in the installation and debugging stage [1] - Some processes of the precision pipe project have also entered trial production, while the main equipment for the welded pipe line is in the installation and debugging phase [1] Group 2: Operational Transition - The new projects have shifted from the construction phase to the production operation phase [1] - The company is focusing on production organization, system and product certification, key technology breakthroughs, new product development, and market expansion [1] Group 3: Future Outlook - By the first half of 2025, the new projects are expected to complete factory audits and certifications from several well-known domestic and international enterprises [1] - The special material project successfully completed its first high-end stainless steel pipe contract delivery in March 2025 [1]

Core Viewpoint - The company expects a slight increase in losses for the six months ending June 30, 2025, compared to the same period in 2024, primarily due to operational improvements being offset by a one-time litigation provision [1] Financial Performance - The company anticipates a loss attributable to shareholders of approximately RMB 25 million for the six months ending June 30, 2025, compared to a loss of about RMB 23.7 million for the same period in 2024 [1] - The total comprehensive loss for the same periods is expected to be around RMB 42 million in 2025, compared to RMB 49.3 million in 2024 [1] Business Operations - The company and its joint ventures have seen an increase in the production and sales volume of welded pipe business compared to the previous year [1] - There has been a significant increase in higher-margin national pipeline projects and anti-corrosion treatment business, contributing to improved gross profit and performance from joint ventures [1]

Core Viewpoint - The domestic steel market is experiencing a strong price performance, with various steel products showing price increases over the past week, indicating a positive trend in the industry [1][3]. Price Summary - The average price of rebar is 3259.20 CNY/ton, up by 27.60 CNY/ton (0.85%) from the previous week [1][3]. - The average price of wire rod is 3506.60 CNY/ton, up by 28.80 CNY/ton (0.83%) from the previous week [1][3]. - The average price of hot-rolled sheets is 3331.00 CNY/ton, up by 27.60 CNY/ton (0.84%) from the previous week [1][3]. - The average price of medium and large profiles is 3398.60 CNY/ton, up by 21.20 CNY/ton (0.63%) from the previous week [1][3]. - The average price of welded pipes is 3553.43 CNY/ton, up by 16.14 CNY/ton (0.46%) from the previous week [3]. - The average price of seamless pipes is 4226.43 CNY/ton, up by 0.57 CNY/ton (0.01%) from the previous week [3]. Market Performance - The steel sector index increased by 4.41% over the past week, outperforming the Shanghai Composite Index (1.09%) and Shenzhen Component Index (1.78%) [2]. - Among the sub-sectors, plate, pipe, and special steel saw increases of 5.37%, 3.38%, and 2.12% respectively [2]. - Year-to-date, the plate and special steel sectors have increased by 13.92% and 8.34% respectively [2]. - 39 steel stocks rose this week, with 86.67% of stocks increasing, 2.22% remaining stable, and 11.11% declining [2]. Raw Material Prices - The iron ore market is also showing slight upward movement, with the Platts iron ore price index averaging 96.11 USD/ton, up by 2.02 USD/ton (2.15%) [3]. - The average price of domestic iron ore imports is 689.20 CNY/ton, up by 18.00 CNY/ton (2.68%) [3]. Policy Impact - New policies are set to increase the green electricity consumption ratio in the steel industry to between 25.2% and 70% by 2025, promoting low-carbon development [4]. - The initiative aims to enhance the green electricity consumption in related industries, accelerating the transition to a low-carbon economy [4]. Investment Outlook - The domestic steel market is expected to benefit from improved supply-demand dynamics, with a focus on leading companies in the rebar sector and those in the special steel segment [5]. - The industry is poised for growth due to manufacturing upgrades and AI transformation, supported by new policies [5].

Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 5.11 yuan [6]. Core Views - The company experienced a revenue decline of 24.57% year-on-year in 2024, with total revenue of 2.652 billion yuan and a net profit attributable to shareholders of 126 million yuan, down 64.25% year-on-year. The first quarter of 2025 showed some recovery with a revenue of 483 million yuan, a decrease of 33.90% year-on-year, but a net profit of 30 million yuan, indicating a turnaround from losses [1][4]. Summary by Sections Financial Performance - In 2024, the company reported a total revenue of 2.652 billion yuan, a decrease of 24.57% year-on-year. The net profit attributable to shareholders was 126 million yuan, down 64.25% year-on-year. The first quarter of 2025 saw a revenue of 483 million yuan, a year-on-year decrease of 33.90%, but a net profit of 30 million yuan, indicating a recovery from previous losses [1][5]. Sales and Margins - The sales volume for seamless and welded pipes in 2024 was 43,500 tons and 26,600 tons, respectively, showing declines of 15.07% and 24.02% year-on-year. In Q1 2025, the sales volume for seamless and welded pipes was 10,600 tons and 6,300 tons, respectively, with a total sales volume of 16,900 tons, reflecting a 4.83% increase quarter-on-quarter [2]. - The gross margin improved in Q1 2025, with the gross margin for seamless pipes increasing by 4.1% and for welded pipes decreasing by 1.1% compared to the previous quarter. The overall gross margin for 2024 was 15.16%, down 1.50 percentage points year-on-year, while in Q1 2025, it was 16.28%, down 2.06 percentage points year-on-year but up 5.37 percentage points quarter-on-quarter [2]. Future Outlook - The company is focusing on maintaining high demand for thermal power boilers, with significant growth in revenue from electric power equipment and natural gas, which increased by 40.79% and 170.29% year-on-year, respectively. The company is also actively developing new application markets, including nuclear power and coal liquefaction, and expanding into international markets [3][4]. - The company has established itself as a qualified supplier for several major domestic and international companies, ensuring product quality through lean production practices [3]. Earnings Forecast - The company is expected to recover its profitability, with projected net profits of 172 million yuan, 192 million yuan, and 215 million yuan for 2025, 2026, and 2027, respectively. The corresponding price-to-earnings ratios are forecasted to be 17x, 15x, and 13x [4][5].