Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [7][25]. Core Views - The company has shown a significant increase in processing volume, with a year-on-year growth of 14% in Q1, suggesting a potential operational turning point [1]. - New signed orders in Q1 2025 reached 7.052 billion yuan, a 1.25% increase year-on-year, while steel structure production was 1.0491 million tons, reflecting a 14.3% increase [1]. - The report anticipates that the company's orders and production will continue to grow rapidly in 2025, driven by cost reductions from robotic welding and fiscal stimulus boosting industry demand [1][4]. Summary by Sections Orders and Production - In Q1 2025, the company secured 14 contracts exceeding 10,000 tons, a decrease from 24 in Q1 2024, indicating a shift towards smaller orders which may enhance cash flow and profitability [2]. - The average unit price for new orders in Q1 2025 was between 4,511 and 5,700 yuan per ton, down from 5,000 to 7,000 yuan per ton in Q1 2024, reflecting a 14.9% year-on-year decline [2]. Financial Performance - The company expects to achieve net profits of 950 million, 1.1 billion, and 1.28 billion yuan for the years 2024 to 2026, respectively, with corresponding P/E ratios of 14.6, 12.5, and 10.8 [4]. - Revenue projections for 2025 are set at 26.33 billion yuan, representing a 15.57% growth from 2024 [5]. Technological Advancements - The company has developed a "lightweight arc welding robot intelligent welding system," which is expected to enhance efficiency and quality in the long term [3]. - The initial sales of welding robots are anticipated to positively impact the company's valuation [3]. Market Outlook - The report highlights a favorable outlook for downstream demand recovery in 2025, supported by significant fiscal measures, including the issuance of approximately 2.84 trillion yuan in local government bonds, an 80% increase year-on-year [4].