SINOMACH-HE(SH:601399) Great Wall Securities·2025-09-03 03:31Investment Rating - The investment rating for the company is "Accumulate" [4] Core Views - The company has shown stable growth in operating performance, with significant increases in orders on hand [2][3] - The revenue for the first half of 2025 reached 7.073 billion yuan, a year-on-year increase of 13.21%, while the net profit attributable to the parent company was 242 million yuan, up 13.37% year-on-year [1][2] - The company is benefiting from a booming thermal power industry, increased orders in petrochemical equipment, and successful overseas hydropower projects [3] Financial Summary - Revenue projections for 2023A to 2027E are as follows: 11,258 million yuan, 12,674 million yuan, 14,381 million yuan, 15,436 million yuan, and 16,805 million yuan, with growth rates of 16.6%, 12.6%, 13.5%, 7.3%, and 8.9% respectively [1][9] - Net profit attributable to the parent company is projected to grow from 431 million yuan in 2023A to 710 million yuan in 2027E, with year-on-year growth rates of 6.8%, 0.3%, 14.1%, 23.7%, and 16.4% [1][9] - The company's EPS is expected to increase from 0.06 yuan in 2023A to 0.10 yuan in 2027E, with corresponding P/E ratios decreasing from 56.6 to 34.4 [1][9] Business Performance - The company has made significant progress in various sectors, including nuclear equipment, pressure vessels, and high-end large castings, with notable contracts signed in these areas [2] - The gross margin for Q2 2025 reached 14.34%, indicating a recovery in profitability [2] - The company has successfully signed agreements for overseas hydropower projects, enhancing its international presence [3]