SNS(SZ:300470) Guoxin Securities·2025-09-17 14:11Investment Rating - The investment rating for the company is "Outperform the Market" [5][21]. Core Views - The company is a leader in mechanical seals, with international business expansion providing growth opportunities. In the first half of 2025, revenue increased by 18.45% year-on-year to 858 million yuan, while net profit attributable to shareholders grew by 8.10% to 187 million yuan. Excluding stock incentive expenses, net profit was 202 million yuan, reflecting a 16.76% increase [1][3]. - The growth in revenue is attributed to the domestic growth in the mechanical seal segment and the acquisition of German company KS GmbH. However, the gross margin and net margin decreased by 3.11 and 2.10 percentage points respectively, primarily due to the lower gross margin of the newly consolidated KS GmbH and increased competition in some incremental market projects [1][3]. Summary by Relevant Sections Revenue and Profitability - In the first half of 2025, the equipment manufacturing segment generated 385 million yuan in revenue, a year-on-year increase of 18.47%, driven by successful market expansion in domestic large petrochemical projects and steady progress in international business. International revenue exceeded 85 million yuan, with a growth of slightly over 10% [2]. - The gross margin for incremental business was 27.56%, down by 3.45 percentage points due to intensified project competition. For existing businesses, revenue from petrochemical, coal chemical, and other segments was 189 million yuan, 64 million yuan, and 49 million yuan respectively, with year-on-year growth rates of 9.58%, 10.58%, and 11.61% [2]. Segment Performance - The rubber and plastic sealing segment achieved revenue of 108 million yuan in the first half of 2025, a significant increase of 60.92%, mainly due to the consolidation of KS GmbH. The subsidiary Yutai Technology maintained stable revenue of 74 million yuan, with a net profit of 15 million yuan, reflecting a 13.04% increase [3]. - The special valve segment reported revenue of 61 million yuan, a year-on-year increase of 9.6%, with a gross margin of 47.91%, up by 0.97 percentage points. The net profit for this segment was 6.5 million yuan, a decrease of 2.09% [3]. Financial Forecasts - The company maintains its profit forecasts for 2025-2027, expecting net profits of 419 million yuan, 484 million yuan, and 558 million yuan respectively, corresponding to P/E ratios of 19, 17, and 14 times [3][4].