Libert(SH:605167) GOLDEN SUN SECURITIES·2025-12-29 05:12Investment Rating - The report initiates coverage with a "Buy" rating for the company [4]. Core Views - The company is a leading player in chemical modular manufacturing with excellent profitability, benefiting from increased investments by core clients in China, leading to significant growth in contract signings and revenue [1][24]. - The industrial modularization penetration rate is continuously increasing, providing a stable order source for the company's main business [2]. - The company plans to raise 750 million yuan through convertible bonds to build a new base in Nantong, which will expand its capacity for large module manufacturing and tap into the nuclear power sector as a new growth point [3][4]. - The nuclear module business is projected to contribute an additional 460 million yuan in performance by 2025, driven by contracts with major nuclear power operators [4]. Summary by Sections 1. Chemical Modular Manufacturing Leader with Excellent Profitability - The company has established a full industry chain layout in chemical EPFCO, integrating design, procurement, modularization, construction, and maintenance [14]. - The company has seen rapid revenue growth due to increased investments from core clients like BASF and Invista, with a total contract amount of 4.2 billion yuan in 2022, doubling its total revenue from 2021 [24][25]. - The company's profitability is superior to its peers, with a gross margin consistently maintained between 15%-20% since 2021, and a projected gross margin of 16.1% for 2024 [30]. 2. Continuous Improvement in Industrial Modularization Penetration - Modular construction offers significant advantages over traditional methods in cost control, construction efficiency, and operational performance, leading to a stable demand for the company's main business [2]. - The company has successfully completed several benchmark large modular projects, enhancing its technical capabilities and establishing stable partnerships with multinational chemical giants [2]. 3. Fundraising for Nantong Base to Enter Nuclear Power Sector - The Nantong base is expected to significantly increase the company's large module manufacturing capacity, with an estimated annual output value of 2.1 billion yuan upon reaching full production [3]. - The nuclear power sector is projected to see substantial growth, with an average annual investment of approximately 160 billion yuan expected to be driven by the construction of new nuclear units [3]. 4. Earnings Forecast, Valuation, and Investment Recommendations - The company is forecasted to achieve net profits of 220 million yuan, 246 million yuan, and 356 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.49, 0.55, and 0.79 yuan per share [4]. - The current stock price corresponds to a P/E ratio of 28, 25, and 17 for the years 2025, 2026, and 2027, indicating potential for significant earnings growth from the nuclear business [4].