CMS·2025-09-05 08:03Investment Rating - The report maintains a "Strong Buy" rating for the company [4] Core Views - The company reported a revenue of 38.151 billion yuan in the first half of 2025, representing a year-on-year growth of 14.03% [1] - The sales gross margin improved to 15.46%, an increase of 0.1 percentage points year-on-year [1] - The net profit attributable to shareholders reached 1.910 billion yuan, up 12.91% year-on-year, while the net profit excluding non-recurring items was 1.806 billion yuan, reflecting a growth of 10.52% [1] - The company experienced a decline in Q2 profits due to impairment losses, with a net profit of 755.6 million yuan, down 3.79% year-on-year [7] - The company has seen significant growth in wind and hydropower orders, with a total of 65.485 billion yuan in new effective orders in the first half of 2025, a year-on-year increase of 16.78% [7] - The company is positioned as a leader in high-end energy equipment, with a focus on technological innovation and quality improvement in its orders [7] Financial Data and Valuation - The projected total revenue for 2025 is 76.665 billion yuan, with a year-on-year growth of 10% [3] - The expected net profit attributable to shareholders for 2025 is 4.034 billion yuan, representing a year-on-year increase of 38% [3] - The company's price-to-earnings (PE) ratio is projected to be 15.8 for 2025, indicating a favorable valuation compared to historical levels [3][20] - The return on equity (ROE) is expected to be 9.5% in 2025, reflecting a recovery in profitability [20] Order and Revenue Growth - The company has seen a notable increase in revenue from coal power, nuclear power, and hydropower, with coal power revenue reaching 11.3 billion yuan, a 33% increase year-on-year [7] - Wind power revenue grew by 22% year-on-year to 8.14 billion yuan, with significant improvements in gross margin [7] - The company has maintained its leading market share in nuclear power despite a 40% decline in bidding volume [7] Cash Flow and Financial Health - The company reported a net operating cash flow of -556 million yuan in the first half of 2025, indicating challenges in cash generation [8] - The debt ratio increased to 71% in Q2 2025, reflecting a higher leverage position [10] - The company holds cash reserves of 31.259 billion yuan, providing a buffer for operational needs [10]