Zhongtai Cryogenic(SZ:300435) Guoxin Securities·2025-09-29 08:43Investment Rating - The investment rating for the company is "Outperform the Market" [5][3]. Core Views - The company is expected to achieve a net profit attributable to shareholders of approximately 3.25 to 3.55 billion yuan for the first three quarters, representing a year-on-year growth of 71.36% to 87.19% [2]. - The significant growth in the third quarter is primarily due to the normalization of overseas orders that were delayed in the second quarter, which are now being recognized in the third quarter's revenue and profit [2]. - The company has a strong advantage in cryogenic equipment for the chemical energy sector, and it is actively expanding into the liquid cooling business, which is expected to benefit from the development of the Xinjiang coal chemical industry [3]. Financial Performance Summary - In the first half of 2025, the company reported a revenue of 1.302 billion yuan, a decrease of 4.79% year-on-year, while the net profit attributable to shareholders was 135 million yuan, an increase of 9.14% year-on-year [1][8]. - The gross margin and net margin for the first half of 2025 were 22.35% and 10.34%, respectively, showing improvements of 4.71 and 1.57 percentage points year-on-year [1]. - The company had a backlog of orders amounting to 2.442 billion yuan by the end of June 2025, with over 50% of new orders being overseas [2]. Earnings Forecast and Valuation - The company is projected to achieve net profits of 4.11 billion yuan, 5.04 billion yuan, and 6.22 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 21, 17, and 14 times [3][4]. - The expected revenue for 2025 is 3.327 billion yuan, reflecting a year-on-year increase of 22.5% [4]. - The company maintains a relatively stable expense ratio, with sales, management, R&D, and financial expense ratios recorded at 3.42%, 3.87%, 2.88%, and -0.44% for the first half of 2025 [1].