Peric Special Gases (SH:688146) Zheng Quan Zhi Xing·2025-08-23 23:29Core Viewpoint - The recent financial report of China Shipbuilding Special Gas (688146) shows a mixed performance with a revenue increase but a slight decline in net profit, indicating potential challenges in profitability despite revenue growth [1][3]. Financial Performance Summary - Total revenue for the first half of 2025 reached 1.04 billion yuan, a year-on-year increase of 12.6% compared to 923 million yuan in 2024 [1]. - Net profit attributable to shareholders was 178 million yuan, a slight decrease of 0.55% from 179 million yuan in the previous year [1]. - The gross profit margin decreased to 30.35%, down 6.7% year-on-year, while the net profit margin fell to 17.1%, a decline of 11.68% [1]. - The company reported a significant accounts receivable level, with accounts receivable amounting to 143.19% of the latest annual net profit [8]. Cost and Expense Analysis - Operating costs increased by 16.24%, attributed to revenue growth and rising raw material prices [3]. - Sales expenses decreased by 11.77% due to optimized sales processes [4]. - Management expenses rose by 57.05%, primarily due to increased depreciation of fixed assets and amortization of intangible assets [5]. - Research and development expenses decreased by 13.1%, indicating that R&D activities are proceeding as planned [6]. Cash Flow and Investment Activities - Net cash flow from operating activities decreased by 22.22%, driven by reduced subsidy and interest income, alongside increased material costs [6]. - Net cash flow from investing activities declined by 30.31%, reflecting ongoing payments for construction projects and cash payments for acquisitions [6]. - Net cash flow from financing activities increased by 14.24%, due to reduced lease payments and lower dividend payments [6]. Business Model and Market Position - The company's return on invested capital (ROIC) was 4.74%, indicating weak capital returns, while the historical median ROIC since listing is 15.64% [7]. - The business model relies heavily on capital expenditures, necessitating careful monitoring of capital project viability and funding pressures [7]. Market Outlook and Analyst Expectations - Analysts project the company's performance for 2025 to reach 378 million yuan in net profit, with an average earnings per share of 0.71 yuan [8].