Insteel Industries' Financial Outlook: Strong Revenue Amidst Cost Challenges and Competitive Pressures

Performance of the Quarterly Report

Insteel Industries' total operating revenue in March 29, 2025 was RMB160.656 million, without the previous data for comparison, but combined with other financial indicators, it can be speculated on its revenue performance and the underlying reasons.

Key Data in the Financial Report

1. The total operating revenue was RMB160.656 million, without the previous data, so it cannot be analyzed year-on-year.

2. The sales cost was RMB136.127 million, the gross profit was RMB24.529 million, and the gross margin was 28.61%, which is better than the industry average of 24.2%.

3. The net cash provided by operating activities was RMB1.5665 million, indicating a healthy revenue realization.

4. The net profit was RMB10.23 million, and the marketing, sales, and general management expenses were RMB10.8 million, indicating a cost control pressure.

5. The net cash provided by investing activities was -RMB7.6338 million, indicating that the company has a large investment expenditure, which may affect its ability to reinvest in subsequent income.

Peer Comparison

1. Industry-wide analysis: The steel industry is greatly affected by market competition and fluctuating raw material prices, and it is expected that the overall operating revenue will be suppressed by the contradiction between supply and demand, and the crude steel production is expected to decrease by 2%.

2. Peer evaluation analysis: Insteel Industries' total operating revenue is relatively high, but its gross margin and net profit margin are lower than some competitors, indicating its insufficient pricing and cost control ability in the market.

Summary

Insteel Industries' revenue performance shows a certain stability, although the overall gross margin is higher than the industry average, it faces a large cost pressure and cost control issues, which may affect future revenue growth. In addition, a large investment expenditure may affect its ability to reinvest in the future.

Opportunities

1. With the support of the country's fiscal policy, the domestic market demand is expected to recover, providing growth opportunities for Insteel Industries.

2. The trend of the overall gross margin improvement in the industry brings a certain profit space for the Company.

3. If the cost control is optimized and the inventory turnover rate is improved, it may enhance the Company's overall financial performance.

Risks

1. The intensified market competition, especially for small and medium-sized enterprises, may affect the operating revenue.

2. The overall profitability of the industry is under pressure, and the fluctuation of raw material prices may increase the cost pressure again.

3. The net cash provided by investing activities is negative, affecting the Company's future reinvestment ability and overall development.