Linyang Energy(SH:601222) Changjiang Securities·2025-09-10 02:12Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Viewpoints - The company reported a significant improvement in profitability on a quarter-on-quarter basis, with a focus on optimizing expense ratios [5]. - In the first half of 2025, the company achieved revenue of 2.481 billion yuan, a year-on-year decrease of 28.35%, and a net profit attributable to the parent company of 324 million yuan, down 45.88% year-on-year [2][5]. - The second quarter of 2025 saw revenue of 1.358 billion yuan, a year-on-year decrease of 28.89% and a quarter-on-quarter decrease of 20.81%, while the net profit was 200 million yuan, down 47.37% year-on-year but up 62.09% quarter-on-quarter [2][5]. Summary by Relevant Sections Smart Meter Segment - In the first half of 2025, the company won bids totaling approximately 165 million yuan in the State Grid's electric meter procurement and 35 million yuan in the Mengxi power grid [5]. - The company has expanded its overseas sales revenue by nearly 50% year-on-year, leveraging partnerships with global leaders and local strategies [5]. New Energy Segment - The company is actively developing various renewable energy projects, with over 1,225 MW under construction and over 495 MW started in 2025 [5]. - As of the end of the first half of 2025, the company held over 1.3 GW of renewable energy projects and provided operation and maintenance services for over 20 GW of capacity [5]. Energy Storage Segment - By the end of the first half of 2025, the company delivered and connected over 5 GWh of energy storage systems, with a project reserve scale of 10 GWh [5]. Financial Data - The company recorded an asset impairment loss of 26 million yuan in the first half of 2025, primarily due to inventory depreciation [5]. - The expense ratio for Q2 2025 was 15.09%, a decrease of 3.69 percentage points quarter-on-quarter, with all expense ratios showing a decline [5]. - The company improved its manufacturing cost by 8% in the first half of 2025 through lean production practices [5].