Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Views - The company has shown significant improvement in quarterly profitability, with a net profit of 2.49 billion yuan in Q3 2025, a year-on-year increase of 149.46% and a quarter-on-quarter increase of 152.43% [2]. - The company has successfully turned around from a net loss of 5.79 billion yuan in the same period last year to a net profit of 3.6 billion yuan for the first three quarters of 2025 [1][3]. - The strategic focus on high-end products has led to an increase in the sales of premium steel varieties, with hot-rolled high-end products increasing by 97.6% [3]. Financial Performance - For the first three quarters of 2025, the company reported total revenue of 27.225 billion yuan, a year-on-year decrease of 12.68% [1]. - The average sales gross margin for the quarters from Q4 2024 to Q3 2025 is projected to improve, with figures of 5.18%, 3.06%, 3.42%, and 5.27% respectively [2]. - The company’s net profit for 2025 is expected to reach 675 million yuan, with a significant growth rate of 1,959.3% year-on-year [5]. Market Position and Strategy - The company has exited low-end trading businesses and is focusing on developing high-value-added products, establishing itself as a global leader in premium silicon steel and high-quality thick plates [3]. - The company’s major shareholder, New Steel Group, has shown confidence by increasing its stake in the company, acquiring approximately 40.32 million shares, which is about 1.27% of the total share capital [3]. Future Outlook - The report forecasts that the company's net profit will continue to improve, with estimates of 680 million yuan, 950 million yuan, and 1.17 billion yuan for the years 2025 to 2027 respectively [3]. - The valuation of the company is expected to have significant recovery potential, with a projected market value of around 17.2 billion yuan at the mid-point of the valuation range [3].

Investment Rating - The report assigns an "Accumulate" rating for the company [2][6]. Core Views - The company's Q1 performance is under pressure, but industry recovery may drive performance recovery [1]. - The company reported a revenue of 41.8 billion yuan in 2024, a year-on-year decrease of 41.2%, and a net profit of 0.33 billion yuan, down 93.4% year-on-year [5]. - In Q1 2025, the company achieved a revenue of 8.75 billion yuan, a year-on-year decrease of 22.5% and a quarter-on-quarter decrease of 17.7%, with a net profit of 0.12 billion yuan, an increase of 1.69 billion yuan year-on-year but a decrease of 98.0% quarter-on-quarter [5]. - The company is focusing on high-end and terminal products, with high-end products accounting for 55.27% of total production in 2024, an increase of 6.84 percentage points from 2023 [5]. - The company is implementing energy-saving and emission-reduction modifications, with a target of creating a benchmark for low-carbon practices in the industry [5]. - The controlling shareholder plans to repurchase shares, demonstrating confidence in the company's future [5]. Financial Summary - The company expects net profits of 0.89 billion yuan, 1.16 billion yuan, and 1.36 billion yuan for 2025, 2026, and 2027 respectively, corresponding to P/E ratios of 14.1x, 10.9x, and 9.3x based on the closing price on May 13 [6]. - Revenue projections for 2025, 2026, and 2027 are 37.01 billion yuan, 36.82 billion yuan, and 37.05 billion yuan, with growth rates of -11.47%, -0.50%, and 0.63% respectively [7]. - The EBITDA for 2025, 2026, and 2027 is projected to be 2.49 billion yuan, 2.89 billion yuan, and 3.25 billion yuan respectively [7]. - The company’s total assets are projected to be 52.36 billion yuan in 2024, with a slight increase to 52.99 billion yuan in 2025 [10][13].