Summary of Conference Call for Shangda Co., Ltd. Company Overview - **Company**: Shangda Co., Ltd. - **Industry**: High-temperature alloy manufacturing, primarily serving aerospace, gas turbines, and nuclear engineering sectors Key Points and Arguments Financial Performance - Despite a downturn in the industry, Shangda Co. maintained profitability, achieving tens of millions in profit while Fushun Special Steel faced a loss of approximately 800 million in 2025 due to cost advantages from its return material recycling technology [2][3] - The company expects its performance in 2025 to be on par with 2024, with a revenue structure split of approximately 50% high-temperature alloys and 50% high-quality stainless steel [3][12] - The gross margin for high-temperature alloy processing is projected to be between 25% and 30%, with an overall gross margin of about 12% in Q3 2025 [3][12] Technology and Competitive Advantage - Shangda Co. utilizes a unique "return material recycling technology," which significantly reduces raw material costs compared to traditional methods that rely on direct procurement of steel and nickel-cobalt [3][7] - The company has achieved industrialization of high-temperature return material recycling technology, validated through engine testing and military assessments [2][8] - The recycling process allows for a more controlled composition of materials, enhancing efficiency and stability in production [7] Market Demand and Supply Dynamics - Domestic demand for high-temperature alloy materials exceeds 100,000 tons, with a supply gap of approximately 20,000 tons, highlighting a significant reliance on imports (over 50%) [3][16] - The company has established a stable supply chain in various sectors, including aerospace, nuclear engineering, and petrochemicals, with key clients in both domestic and international markets [5][6][15] Production Capacity and Expansion Plans - The company is currently facing capacity bottlenecks, which hinder timely order fulfillment. Expansion plans funded by IPO proceeds aim to alleviate these pressures and enhance delivery capabilities [11][19] - By 2026, Shangda Co. anticipates a significant increase in production capacity, with a projected revenue growth of 20-25% due to rising demand and new capacity coming online [20] Future Outlook - The company aims to achieve revenue of approximately 5-5.5 billion by 2030, with a gradual increase in net profit margins from around 5% in 2025 to 10% by 2030 [20][21] - The expected valuation is projected to decrease from 107 times earnings in 2025 to about 20 times by 2028, reflecting improved production efficiency and market conditions [21] Additional Important Information - The company has secured long-term supply agreements with foreign clients, particularly in the aircraft engine manufacturing sector, which will commence in 2026 [10][15] - The domestic high-temperature alloy market is characterized by a significant reliance on indigenous technology due to export restrictions on critical materials [16][17] - The company’s core competencies lie in its specialized smelting and forging capabilities, which are essential for meeting the high standards required in aerospace and defense applications [16]

Core Viewpoint - The stock of Shangda Co., Ltd. experienced a 3.71% increase on February 26, with a trading volume of 591 million yuan, indicating strong market interest and activity in the company's shares [1]. Financing Summary - On February 26, Shangda Co., Ltd. had a financing buy amount of 76.01 million yuan and a financing repayment of 50.24 million yuan, resulting in a net financing purchase of 25.76 million yuan [1]. - As of February 26, the total financing and securities lending balance for Shangda Co., Ltd. was 485 million yuan, with the financing balance accounting for 4.13% of the circulating market value, indicating a high level of financing activity compared to the past year [1]. - The company had no shares repaid in securities lending on February 26, with 13,000 shares sold short, amounting to 541,100 yuan at the closing price, and a securities lending balance of 607,700 yuan, also indicating a high level of activity [1]. Company Overview - Shangda Co., Ltd., established on August 23, 2007, and listed on October 16, 2024, is located in Qinghe County, Hebei Province. The company specializes in the research, production, and sales of high-temperature and high-performance alloys, as well as high-quality special stainless steel [1]. - The revenue composition of the company includes high-temperature and high-performance alloys at 52.58%, high-quality special stainless steel at 44.22%, and other products at 2.02%, with additional supplementary products at 1.17% [1]. Financial Performance - As of September 30, the number of shareholders for Shangda Co., Ltd. was 25,500, a decrease of 1.12% from the previous period, while the average circulating shares per person increased by 1.13% to 2,914 shares [2]. - For the period from January to September 2025, Shangda Co., Ltd. reported a revenue of 1.805 billion yuan, a year-on-year decrease of 4.10%, and a net profit attributable to shareholders of 76.58 million yuan, down 38.60% year-on-year [2]. Dividend Information - Since its A-share listing, Shangda Co., Ltd. has distributed a total of 43.51 million yuan in dividends [3]. Institutional Holdings - As of September 30, 2025, the second-largest circulating shareholder of Shangda Co., Ltd. was the Guotai CSI Military Industry ETF, holding 735,400 shares, a decrease of 115,300 shares from the previous period [3]. - The Southern CSI 1000 ETF ranked third among circulating shareholders with 678,800 shares, down by 12,200 shares, while the Southern CSI Shenwan Nonferrous Metals ETF increased its holdings by 321,500 shares to 597,200 shares, indicating varied institutional interest [3].

Core Viewpoint - The company, Zhonghang Shanda High-Temperature Alloy Materials Co., Ltd., is experiencing fluctuations in its stock performance and financial metrics, indicating potential investment opportunities and risks in the high-temperature alloy and special stainless steel market. Group 1: Stock Performance - On February 9, the stock price of Shanda increased by 1.73%, with a trading volume of 303 million yuan [1] - The margin trading data shows a financing buy amount of 34.28 million yuan and a financing repayment of 38.86 million yuan, resulting in a net financing buy of -4.57 million yuan [1] - As of February 9, the total margin trading balance for Shanda is 487 million yuan, which accounts for 4.40% of its circulating market value, indicating a high level compared to the past year [1] Group 2: Financial Performance - For the period from January to September 2025, Shanda reported an operating income of 1.805 billion yuan, a year-on-year decrease of 4.10% [2] - The net profit attributable to shareholders for the same period was 76.58 million yuan, reflecting a significant year-on-year decline of 38.60% [2] Group 3: Shareholder Information - As of September 30, the number of shareholders for Shanda is 25,500, which is a decrease of 1.12% compared to the previous period [2] - The average circulating shares per person increased by 1.13% to 2,914 shares [2] - The top ten circulating shareholders include various ETFs, with notable changes in holdings, such as a decrease of 115,300 shares for Guotai Zhongzheng Military Industry ETF [3]

Group 1 - The core viewpoint of the news is that Shangda Co., Ltd. has seen a significant increase in its stock price, rising by 5.32% to 41.74 CNY per share, with a total market capitalization of 15.522 billion CNY as of January 22 [1] - Shangda Co., Ltd. specializes in the research, production, and sales of high-temperature and high-performance alloys, as well as high-quality special stainless steel, with its main business revenue composition being 52.58% from high-temperature and high-performance alloys, 44.22% from high-quality special stainless steel, and 2.02% from other products [1] - The company was established on August 23, 2007, and is located in Qinghe County, Hebei Province, with its listing date set for October 16, 2024 [1] Group 2 - From the perspective of the top ten circulating shareholders, Guotai Fund's Guotai Zhongzheng Military Industry ETF (512660) reduced its holdings by 115,300 shares in the third quarter, now holding 735,400 shares, which accounts for 0.99% of the circulating shares [2] - The Guotai Zhongzheng Military Industry ETF (512660) has a current scale of 14.109 billion CNY and has achieved a year-to-date return of 7.79%, ranking 1873 out of 5542 in its category, with a one-year return of 48.43%, ranking 1356 out of 4256 [2]

Group 1 - The core point of the news is that Shangda Co., Ltd. experienced a decline of 5.07% in its stock price, reaching 40.84 CNY per share, with a trading volume of 609 million CNY and a turnover rate of 5.19%, resulting in a total market capitalization of 15.187 billion CNY [1] - Shangda Co., Ltd. specializes in the research, production, and sales of high-temperature and high-performance alloys, as well as high-quality special stainless steel, with revenue composition being 52.58% from high-temperature and high-performance alloys, 44.22% from high-quality special stainless steel, 2.02% from other products, and 1.17% from supplementary sources [1] Group 2 - Among the top ten circulating shareholders of Shangda Co., Ltd., Guotai Fund's ETF, Guotai Zhongzheng Military Industry ETF (512660), reduced its holdings by 115,300 shares, now holding 735,400 shares, which accounts for 0.99% of the circulating shares, resulting in an estimated floating loss of approximately 1.6032 million CNY [2] - The Guotai Zhongzheng Military Industry ETF (512660) has a total scale of 14.109 billion CNY, with a year-to-date return of 13.82%, ranking 381 out of 5,525 in its category, and a one-year return of 56.1%, ranking 906 out of 4,208 [2]

Group 1 - The core viewpoint of the news is that Shangda Co., Ltd. has experienced a significant stock price increase, with a 7.04% rise on January 9, reaching 44.98 yuan per share, and a cumulative increase of 8.49% over three days [1] - Shangda Co., Ltd. specializes in the research, production, and sales of high-temperature and high-performance alloys, as well as high-quality special stainless steel, with revenue composition being 52.58% from high-temperature alloys, 44.22% from special stainless steel, and 2.02% from other products [1] - The company was established on August 23, 2007, and went public on October 16, 2024, with a total market capitalization of 16.727 billion yuan [1] Group 2 - The top circulating shareholder of Shangda Co., Ltd. is the Guotai Fund, which has reduced its holdings in the Guotai Zhongzheng Military Industry ETF (512660) by 115,300 shares, now holding 735,400 shares, representing 0.99% of circulating shares [2] - The Guotai Zhongzheng Military Industry ETF has achieved a year-to-date return of 9.47% and a one-year return of 55.58%, ranking 254 out of 5509 and 949 out of 4198 respectively [2] - The fund manager of Guotai Zhongzheng Military Industry ETF, Ai Xiaojun, has a total fund asset scale of 1690.29 billion yuan and has been in the position for 12 years, with the best fund return during his tenure being 275.69% [3]

Group 1 - The core viewpoint of the news is that Shangda Co., Ltd. has seen a significant increase in its stock price, rising by 5.15% to 41.64 CNY per share, with a total market capitalization of 15.485 billion CNY as of January 8 [1] - Shangda Co., Ltd. specializes in the research, production, and sales of high-temperature and high-performance alloys, as well as high-quality special stainless steel, with its main business revenue composition being 52.58% from high-temperature alloys, 44.22% from special stainless steel, and 2.02% from other products [1] - The company was established on August 23, 2007, and is located in Qinghe County, Hebei Province, with its listing date set for October 16, 2024 [1] Group 2 - Among the top ten circulating shareholders of Shangda Co., Ltd., Guotai Fund's Guotai Zhongzheng Military Industry ETF (512660) reduced its holdings by 115,300 shares in the third quarter, now holding 735,400 shares, which accounts for 0.99% of the circulating shares [2] - The Guotai Zhongzheng Military Industry ETF (512660) has a total scale of 14.109 billion CNY and has achieved a return of 5.04% this year, ranking 1280 out of 5493 in its category [2] - The fund has a one-year return of 48.24%, ranking 1242 out of 4197, and a total return of 44.07% since its inception on July 26, 2016 [2]

Core Viewpoint - The stock of Shangda Co., Ltd. has shown significant price increases recently, with a year-to-date rise of 8.02% and a 12.74% increase over the last five trading days, indicating strong market interest and potential growth in the company's performance [1]. Financial Performance - For the period from January to September 2025, Shangda Co., Ltd. reported a revenue of 1.805 billion yuan, reflecting a year-on-year decrease of 4.10%. The net profit attributable to shareholders was 76.58 million yuan, down 38.60% compared to the previous year [2]. - Cumulative cash dividends since the company's A-share listing amount to 43.51 million yuan [3]. Shareholder and Market Activity - As of September 30, 2025, the number of shareholders for Shangda Co., Ltd. was 25,500, a decrease of 1.12% from the previous period. The average number of circulating shares per shareholder increased by 1.13% to 2,914 shares [2]. - The major shareholders include various ETFs, with notable changes in holdings. For instance, the Guotai Zhongzheng Military Industry ETF reduced its holdings by 11.53% to 735,400 shares, while the Southern Zhongzheng Shenyuan Nonferrous Metals ETF increased its holdings by 32,150 shares to 597,200 shares [3]. Company Overview - Shangda Co., Ltd., established on August 23, 2007, specializes in the research, production, and sales of high-temperature and high-performance alloys, as well as high-quality special stainless steel. The revenue composition includes 52.58% from high-temperature alloys, 44.22% from special stainless steel, and 2.02% from other products [1]. - The company operates within the non-ferrous metals sector, specifically in the new materials category, and is involved in concepts such as high-temperature alloys, nuclear fusion, nuclear power, aerospace, and military-civilian integration [1].

Core Viewpoint - The stock of Shangda Co., Ltd. experienced a decline of 2.61% on December 22, with a trading volume of 427 million yuan, indicating a significant market reaction to recent financial performance and trading activities [1]. Financing Summary - On December 22, Shangda Co., Ltd. had a financing buy-in amount of 59.21 million yuan, with a net financing purchase of 11.50 million yuan after repayments [1]. - The total financing and securities lending balance reached 312 million yuan, with the financing balance accounting for 3.26% of the circulating market value, indicating a high level of financing activity compared to the past year [1]. - The company also reported a securities lending repayment of 3,300 shares and a selling amount of 98,500 yuan, with a securities lending balance of 339,500 yuan, also at a high level compared to the past year [1]. Financial Performance - For the period from January to September 2025, Shangda Co., Ltd. achieved an operating income of 1.805 billion yuan, reflecting a year-on-year decrease of 4.10% [2]. - The net profit attributable to the parent company was 76.58 million yuan, showing a significant year-on-year decline of 38.60% [2]. Shareholder and Institutional Holdings - As of September 30, 2025, the number of shareholders for Shangda Co., Ltd. was 25,500, a decrease of 1.12% from the previous period, while the average circulating shares per person increased by 1.13% to 2,914 shares [2]. - The top institutional shareholders include Guotai CSI Military Industry ETF, which holds 735,400 shares, a decrease of 115,300 shares from the previous period, and Southern CSI 1000 ETF, holding 678,800 shares, down by 12,200 shares [3].

Core Viewpoint - The stock of Zhonghang Shanda High-Temperature Alloy Materials Co., Ltd. (上大股份) has shown a positive performance with a 1.95% increase on December 18, 2023, alongside significant trading activity in margin financing and securities lending [1] Financing Summary - On December 18, 2023, the financing buy-in amount for Zhonghang Shanda was 79.24 million yuan, while the financing repayment was 72.50 million yuan, resulting in a net financing buy of 6.74 million yuan [1] - As of December 18, 2023, the total margin financing and securities lending balance for the company was 293 million yuan, with the financing balance accounting for 3.01% of the circulating market value, indicating a high level compared to the past year [1] - The company had no shares repaid in securities lending on December 18, 2023, but sold 600 shares, amounting to 20,700 yuan at the closing price, with a securities lending balance of 376,400 yuan, also at a high level compared to the past year [1] Business Performance - For the period from January to September 2025, Zhonghang Shanda reported an operating income of 1.805 billion yuan, reflecting a year-on-year decrease of 4.10%, and a net profit attributable to shareholders of 76.58 million yuan, down 38.60% year-on-year [2] - The company's main business revenue composition includes high-temperature and high-performance alloys at 52.58%, high-quality special stainless steel at 44.22%, and other products at 3.19% [1] Shareholder Information - As of September 30, 2025, the number of shareholders for Zhonghang Shanda was 25,500, a decrease of 1.12% from the previous period, with an average of 2,914 circulating shares per person, an increase of 1.13% [2] - The top ten circulating shareholders include various ETFs, with notable changes in holdings, such as a decrease in shares held by Guotai Zhongzheng Military Industry ETF and an increase in shares held by Southern CSI Nonferrous Metals ETF [3]