China Galaxy: Leading general steel enterprise expected to benefit from improvement in industry supply and demand structure.

According to a research report from China Galaxy Securities, recently steel companies have successively released their performance reports for the first three quarters of 2025. The leading steel companies have seen a significant increase in their net profits attributable to shareholders, and some steel companies have turned losses into profits compared to the previous year. The overall profitability of the steel industry has been restored. Against the backdrop of the continuous promotion of supply-side anti-internal-circulation reforms, the steel industry's production capacity continues to concentrate on high-quality leading companies. From the demand side, the industry is expected to benefit from the upgrading of the manufacturing industry and AI transformation. In the medium and long term, China Galaxy Securities believes that leading companies in the general steel industry are expected to benefit from the improvement in the industry's supply-demand structure. It is recommended to pay attention to leading companies in the general steel sector that benefit from the improvement in the industry's supply-demand structure, as well as leading companies in the basic steel sector with good fundamentals.