Zhongtai Cryogenic(SZ:300435) Xin Lang Zheng Quan·2025-09-23 13:24Core Viewpoint - The company has shown resilience in its financial performance despite a decline in revenue from the city gas segment, with strong profit contributions from its deep cooling business [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 1.302 billion yuan, a decrease of 4.79% year-on-year, primarily due to a significant drop in the city gas segment [1]. - The net profit for the same period was 135 million yuan, an increase of 9.14% year-on-year, with the equipment sales segment contributing over 90% of the profit [1]. - For the first three quarters of 2025, the company expects a net profit between 325 million and 355 million yuan, representing a year-on-year growth of 71.36% to 87.19% [1]. Market Strategy - The company aims for a 20% to 30% annual growth in new overseas orders over the next 3 to 5 years, targeting major global markets [2]. - In the domestic market, the company plans to enhance sales efforts and maintain market share, particularly focusing on key markets like Xinjiang [2]. - The city gas segment is working on improving communication with local governments to recover debts and expand user bases [2]. Order and Sales Insights - The company set a sales target for the year to grow by over 20% compared to the previous year and is confident in achieving this [3]. - As of the half-year report, over 30% of the equipment segment's revenue came from overseas orders, with more than 50% of new orders being international [3]. - The company has expanded its business into regions such as the Middle East, Central Asia, and Europe, with a typical order delivery cycle of over 18 months [3]. Technological Development - The company is open to new technologies and is actively pursuing research and development in areas like liquid cooling [2][3]. - The company has initiated a project in the coal-to-gas sector in Xinjiang, which is expected to generate additional orders [2]. Risk Management - The company has accounted for a goodwill impairment of 324 million yuan related to its city gas business in the 2024 annual report, but does not anticipate triggering further impairments in 2025 [3].