SUFA(SZ:000777) Zhong Guo Neng Yuan Wang·2025-10-17 03:15Core Viewpoint - The report highlights that China Nuclear Technology (000777) is experiencing steady revenue growth driven by its nuclear power valve business, accelerated domestic production, and overseas expansion [1][2]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 704 million yuan, a year-on-year increase of 9.43%, and a net profit attributable to shareholders of 77 million yuan, up 1.68% year-on-year [2][3]. - The nuclear power and nuclear chemical valve segment generated revenue of 311 million yuan, a significant year-on-year increase of 26.54%, contributing 46.57% to gross profit [3]. Business Segments - The oil and petrochemical valve segment reported revenue of 206 million yuan, a year-on-year increase of 13.92%, with a gross profit margin of 29.55% [3]. - Other valve revenues declined by 16.25%, indicating intensified competition in the traditional industrial valve sector [3]. Cost Management - The company’s expense ratio for the first half of 2025 was 17.22%, a decrease of 1.18 percentage points year-on-year [4]. - Research and development investment increased to 28 million yuan, up 7.24% year-on-year, focusing on key equipment like ultra-large nuclear power valves [4]. Market Strategy - The domestic replacement and high-end development of nuclear power valves are central to the company's strategy, supported by policy initiatives [5]. - The company is expanding into overseas markets and enhancing operational services to capture additional market share [5][6]. Long-term Outlook - The company is expected to benefit from its integrated capabilities in forging, processing, assembly, and service, with a projected net profit of 267 million yuan, 307 million yuan, and 350 million yuan for 2025-2027 [6]. - The estimated earnings per share for the same period are projected to be 0.70, 0.80, and 0.91 yuan, with corresponding PE ratios of 30.31, 26.34, and 23.09 [6].