SUFA(SZ:000777) Guoyuan Securities·2025-10-16 13:51Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected stock price increase of over 15% compared to the benchmark index [7]. Core Insights - The company's revenue for the first half of 2025 reached 704 million, representing a year-on-year growth of 9.43%. The net profit attributable to shareholders was 77 million, with a growth of 1.68% year-on-year [1][2]. - The nuclear power business is a strong driver of revenue growth, with significant contributions from high-end valve products such as the "Hualong One" pressure relief valve and CAP1400 main steam isolation valve, which saw a revenue increase of 26.54% [2]. - The company is actively expanding into new application scenarios, achieving breakthroughs in emerging fields like POE (polyolefin elastomer) and pumped storage, while also enhancing its service capabilities across the entire valve lifecycle [2][4]. Summary by Sections Financial Performance - In the first half of 2025, the company reported a revenue of 704 million, with a 9.43% increase year-on-year. The nuclear and nuclear chemical valve business generated 311 million, up 26.54%, contributing 46.57% to gross profit [1][2]. - The gross margin for the first half of 2025 was 19.56%, down 4.88 percentage points year-on-year, primarily due to a 48.06% increase in costs for the nuclear valve business [3]. Cost Management - The company managed to reduce its selling expenses to 23 million, a decrease of 28.64% year-on-year, while financial expenses dropped to 1 million, down 33.44% [3]. - Research and development expenses increased to 28 million, up 7.24% year-on-year, focusing on key equipment like ultra-large diameter nuclear valves [3]. Strategic Initiatives - The company is accelerating domestic substitution and high-end development of nuclear valves, supported by policies that enhance its supply capabilities across various reactor generations [4]. - The strategic focus includes innovation and return on investment, with plans to upgrade smart manufacturing capacities and extend operational services through overseas expansions [4][5]. Profit Forecast - The company is expected to see net profits of 267 million, 307 million, and 350 million for 2025, 2026, and 2027 respectively, with corresponding earnings per share of 0.70, 0.80, and 0.91 [5][10].