CJJG(SH:600496) Tianfeng Securities·2025-08-28 07:48Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [7][18]. Core Views - The company has demonstrated strong revenue and profit growth, with a 29.48% year-on-year increase in revenue to CNY 9.911 billion and a 28.06% increase in net profit to CNY 350 million in H1 2025 [1][4]. - The company is experiencing significant growth in international orders, with a 94% increase year-on-year, contributing to an overall improvement in order quality [2][4]. - The company is actively expanding its chain franchise business, which is a key component of its "Five-Five Strategy," with eight joint ventures established across various regions in China [1][4]. Financial Performance - In H1 2025, the company achieved a steel structure sales volume of 835,000 tons, a 47% increase year-on-year, with revenues from steel structure and integrated EPC businesses reaching CNY 9.150 billion and CNY 580 million, respectively [2]. - The gross profit margin for H1 2025 was 10.6%, a decrease of 2.25 percentage points year-on-year, while the net profit margin was 3.57%, down 0.05 percentage points [3]. - The company reported a cash flow from operations (CFO) of CNY 423 million, an increase of CNY 202 million year-on-year, indicating strong cash flow performance [3]. Future Outlook - The company is expected to continue its strong growth trajectory, with projected net profits of CNY 600 million, CNY 690 million, and CNY 786 million for the years 2025, 2026, and 2027, respectively [4]. - The report highlights the company's efforts in integrating AI technologies into its operations, which are anticipated to enhance efficiency and create new growth avenues [4].