Zhongtai Cryogenic(SZ:300435) China Securities·2025-03-19 01:57Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company has announced a 2025 employee stock ownership plan, indicating strong confidence in its future development. The plan involves the transfer of up to 5.37765 million shares, representing 1.3942% of the total share capital, with a performance target of a 40% increase in net profit attributable to shareholders in 2025 compared to the adjusted 2024 figures [2][3]. - The natural gas business is facing challenges due to external factors leading to goodwill impairment, with an expected loss of 60 to 85 million yuan in 2024. However, the equipment business is experiencing a surge in overseas orders, which are expected to significantly contribute to performance in 2025 [3][9]. Summary by Sections Employee Stock Ownership Plan - The company plans to transfer up to 5.37765 million shares as part of its 2025 employee stock ownership plan, with a total fundraising amount not exceeding 71.0925 million yuan. The share price for the plan is set at 13.22 yuan per share, and the performance target is a 40% increase in net profit for 2025 based on 2024 figures adjusted for goodwill impairment [2][4]. Financial Performance and Forecast - The company anticipates a net profit loss of 60 to 85 million yuan for 2024, primarily due to a significant decline in performance from its subsidiary, Shandong Zhongyi, caused by reduced gas demand from downstream customers. A goodwill impairment of approximately 313 million yuan is expected [3][11]. - For 2024 and 2025, the forecasted net profits are -0.73 billion yuan and 4.02 billion yuan, respectively, indicating a recovery in profitability in 2025 [10]. Market and Order Growth - The company has achieved significant breakthroughs in overseas markets, with new orders totaling 1.418 billion yuan in 2023, a year-on-year increase of over 300%. The proportion of overseas orders in new contracts exceeds 30% [9]. - The gross profit margin for overseas sales reached 45.86% in 2023 and increased to 58.42% in the first half of 2024, significantly higher than domestic margins. The company expects to begin large-scale deliveries of high-margin overseas orders in 2025, which will enhance performance [9].