Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The report highlights that the company's performance in the first half of 2025 was impacted by a decline in lithium prices, leading to a decrease in revenue and profit. However, cost optimization efforts have helped mitigate some of the pressure [4][5] - The company received government subsidies of nearly 60 million yuan, which contributed to a quarter-on-quarter increase in net profit for Q2 2025 [4] - The report anticipates a gradual recovery in profits from 2025 to 2027, with projected net profits of 908 million yuan, 1.085 billion yuan, and 1.495 billion yuan respectively [6] Financial Performance Summary - In the first half of 2025, the company achieved operating revenue of 3.693 billion yuan, a year-on-year decrease of 18%. The net profit attributable to the parent company was 401 million yuan, down 48% year-on-year [4] - The average selling price of lithium carbonate for the first half of 2025 was approximately 71,600 yuan per ton, reflecting a 32% year-on-year decline [5] - The company's lithium business revenue was 862 million yuan, a decrease of 41% year-on-year, with a gross profit of 257 million yuan, down 47% year-on-year, resulting in a gross margin of 30% [5] Business Segment Analysis - The special steel segment reported revenue of 2.831 billion yuan in the first half of 2025, down 6% year-on-year, with a gross profit of 326 million yuan and a gross margin of 11.52% [6] - The company has been optimizing its product structure, leading to increased sales of high-value-added products such as nuclear power steel and automotive high-purity steel, which has improved market share [6] Profit Forecast and Investment Recommendations - The report forecasts net profits for 2025, 2026, and 2027 at 908 million yuan, 1.085 billion yuan, and 1.495 billion yuan respectively, reflecting a downward adjustment in lithium price expectations [6] - Earnings per share (EPS) are projected to be 1.68 yuan, 2.01 yuan, and 2.77 yuan for the years 2025, 2026, and 2027 respectively [6]