Zhongtai Cryogenic(SZ:300435) Xin Lang Cai Jing·2025-11-01 10:47Event Overview - In the first three quarters of 2025, the company reported revenue of 2.115 billion yuan, a year-on-year increase of 5.13%; net profit attributable to shareholders was 336 million yuan, up 77.07%; and net profit excluding non-recurring items was 323 million yuan, an increase of 76.69% [1] - In Q3 2025, the company achieved revenue of 813 million yuan, a year-on-year increase of 26.20%; net profit attributable to shareholders was 201 million yuan, up 203.97%; and net profit excluding non-recurring items was 197 million yuan, an increase of 206.64% [1] Core Insights - For the first three quarters of 2025, the company's gross margin and net margin increased by 10.35 and 6.64 percentage points, respectively, with the expense ratio rising due to increased sales expenses. The gross margin and net margin were 29.38% and 15.89%, respectively, while the expense ratio was 9.98%, up 2.64 percentage points [2] - In the first half of 2025, overseas new orders accounted for over 50% of total new orders, indicating sustainable growth in high-margin overseas orders. The gross margins for domestic and overseas operations were 14.72% and 72.96%, respectively, with year-on-year changes of -2.16 and +14.54 percentage points. The company aims for annual growth of 20%-30% in overseas new orders over the next 3-5 years [2] - The domestic coal chemical investment remains high, while overseas markets are experiencing a surge in petrochemical investments. The company's cryogenic equipment business is expected to benefit significantly from these trends, as its products are applicable in natural gas, coal chemical, and petrochemical industries [3] Investment Recommendations - The company operates in the cryogenic technology equipment manufacturing sector, with products widely applicable in downstream coal chemical and petrochemical industries. With the gradual implementation of new coal chemical projects and the overseas investment boom driving demand for cryogenic equipment, the company is expected to benefit significantly. Revenue projections for 2025, 2026, and 2027 are 3.034 billion, 3.428 billion, and 3.916 billion yuan, with year-on-year growth rates of 11.7%, 13.0%, and 14.3%, respectively. Net profits are projected to be 400 million, 461 million, and 526 million yuan, with corresponding EPS of 1.04, 1.20, and 1.36 yuan, leading to PE ratios of 20.86, 18.08, and 15.84 times, respectively, maintaining a "buy" rating [4]