COOEC(SH:600583) Ge Long Hui·2025-08-16 17:36Core Viewpoint - The company reported its 1H25 performance, which met expectations, with a decline in revenue and net profit compared to the previous year, but showed positive growth in net profit after excluding tax refunds [1][2]. Financial Performance - The company achieved operating revenue of 11.3 billion yuan, a year-on-year decrease of 16% - The net profit attributable to shareholders was 1.1 billion yuan, down 8% year-on-year - Operating cash flow was 220 million yuan, a decline of 14% year-on-year - Excluding tax refunds, the net profit showed a year-on-year increase of 14.4%, reaching 960 million yuan [1][2]. Profitability and Margins - The gross margin reached a five-year high of 16.3%, an increase of approximately 5 percentage points year-on-year - This improvement was driven by higher construction profit margins, an increased proportion of installation business revenue, and efficient offshore installation processes - Financial expenses decreased by 48% to 35.34 million yuan, with interest income rising due to proactive cash management [2]. Order Trends and Market Outlook - The company maintained a stable order intake, with new contracts signed amounting to 12.07 billion yuan, a decrease of 3.6% year-on-year - The backlog of orders accumulated to 40.7 billion yuan, providing a solid workload for the future - The company expects improvements in the Middle East market, despite current challenges [2][3]. Research and Development - The company continues to invest heavily in R&D to address gaps in deep-sea technology - Focus areas include the development of floating production equipment and strategic deployment in high-end marine engineering [3]. Earnings Forecast and Valuation - The earnings forecast for 2025 and 2026 remains unchanged - The current stock price corresponds to a price-to-earnings ratio of 10.5 times for 2025 and 9.9 times for 2026 - The target price is set at 6.50 yuan, implying a potential upside of 12.9% from the current stock price [4].