Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company reported a revenue of 663 million yuan in Q1 2025, a year-on-year increase of 0.03%, and a net profit attributable to shareholders of 92 million yuan, up 1.65% year-on-year. The gross margin and net margin improved to 36.83% and 12.89%, respectively, reflecting a significant enhancement in profitability [1] - The company benefits from the rising demand in the "two machines" industry, with contract liabilities exceeding 1.2 billion yuan, indicating strong revenue growth potential for 2025. The domestic orders are expected to increase due to accelerated localization efforts in gas turbines and aviation engines [2] - The approval of nuclear power projects is expected to boost the company's revenue from nuclear main pump castings, with strategic partnerships and contracts already in place for multiple nuclear projects [3] Summary by Sections Performance Review - In Q1 2025, the company achieved a revenue of 663 million yuan and a net profit of 92 million yuan, with improved profitability metrics [1] Operational Analysis - The company signed long-term agreements with major clients in the "two machines" sector, leading to a significant increase in contract liabilities, which grew over 100% year-on-year to 1.76 billion yuan. This positions the company for accelerated revenue growth in 2025 [2] - The domestic market for gas turbines is expanding, with successful certification of domestically developed aircraft engines, indicating a positive trend for future orders [2] Nuclear Power Sector - The approval of five nuclear power projects is expected to enhance demand for the company's nuclear pump products, with existing contracts already in place for significant deliveries [3] Profit Forecast and Valuation - Projected revenues for 2025-2027 are 3.2 billion, 3.9 billion, and 5 billion yuan, with net profits of 450 million, 630 million, and 890 million yuan, respectively. The corresponding price-to-earnings ratios are 30, 22, and 15 [4]

Market Performance - The controllable nuclear fusion concept sector declined by 0.87%, ranking among the top losers in the concept sector, with *ST Lihang hitting the limit down [1] - Among the stocks in this sector, 27 stocks saw price increases, with Xinhongye, Yingliu Co., and HuoDuan Intelligent leading the gains at 6.83%, 3.70%, and 3.20% respectively [1] Capital Flow - The controllable nuclear fusion concept sector experienced a net outflow of 277 million yuan, with 35 stocks seeing net outflows, and 16 stocks with outflows exceeding 10 million yuan [1] - The stock with the highest net outflow was XueRen Co., with a net outflow of 47.1 million yuan, followed by LanShi Heavy Industry, China Energy Construction, and China Nuclear Power with net outflows of 40.3 million yuan, 36.3 million yuan, and 32.4 million yuan respectively [1] Top Gainers and Losers - The top gainers in the controllable nuclear fusion concept sector included Shanghai Electric, HaiLu Heavy Industry, and Yingliu Co., with net inflows of 50.2 million yuan, 31.7 million yuan, and 28.6 million yuan respectively [1][3] - The top losers included XueRen Co. (-3.24%), LanShi Heavy Industry (-5.64%), and China Energy Construction (-0.45%) [2][3]

Financial Performance - The company's operating revenue for Q1 2025 was CNY 662,572,873.60, a slight increase of 0.03% compared to CNY 662,403,655.72 in the same period last year[3]. - Net profit attributable to shareholders was CNY 92,043,128.70, reflecting a year-on-year increase of 1.65% from CNY 90,549,512.46[3]. - Basic earnings per share rose to CNY 0.14, up 7.69% from CNY 0.13 in the previous year[3]. - Total operating revenue for Q1 2025 was approximately ¥662.57 million, a slight increase from ¥662.40 million in Q1 2024, representing a growth of 0.03%[16]. - Net profit for Q1 2025 was approximately ¥85.40 million, slightly down from ¥85.47 million in Q1 2024, indicating a decrease of 0.08%[17]. - The company achieved a gross profit of approximately ¥243.66 million in Q1 2025, compared to ¥227.28 million in Q1 2024, marking an increase of about 7.2%[16]. - The total comprehensive income for Q1 2025 was approximately ¥94.63 million, an increase from ¥80.41 million in Q1 2024, representing a growth of about 17.6%[17]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 12,037,085,995.27, representing a 4.20% increase from CNY 11,552,201,218.57 at the end of the previous year[4]. - The company's total current assets increased to CNY 4,033,455,176.00, up from CNY 3,742,248,497.84 as of December 31, 2024, representing a growth of approximately 7.8%[11]. - Total non-current assets reached CNY 8,003,630,819.27, compared to CNY 7,809,952,720.73, showing an increase of approximately 2.5%[12]. - The company's total liabilities increased to CNY 6,872,169,654.59 from CNY 6,484,679,283.92, representing a growth of about 6.0%[13]. - The total equity attributable to shareholders rose to CNY 4,730,973,969.30 from CNY 4,626,953,629.75, reflecting an increase of approximately 2.2%[13]. Cash Flow - The net cash flow from operating activities was negative at CNY -156,957,956.73, compared to CNY -70,703,478.23 in the same period last year, indicating a significant decline[3]. - The company reported a net cash outflow from operating activities of approximately ¥156.96 million in Q1 2025, compared to an outflow of ¥70.70 million in Q1 2024, reflecting a worsening cash flow situation[20]. - Cash and cash equivalents at the end of Q1 2025 totaled approximately ¥207.12 million, down from ¥425.26 million at the end of Q1 2024, a decrease of about 51.3%[21]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 21,374[8]. - The largest shareholder, Huoshan Yingliu Investment Management Co., Ltd., holds 27.37% of the shares, with 90,000,000 shares pledged[8]. - The company has not reported any significant changes in shareholder participation in margin financing or securities lending activities[10]. Operational Efficiency - Total operating costs decreased to approximately ¥583.91 million in Q1 2025 from ¥599.98 million in Q1 2024, a reduction of about 2.0%[16]. - Research and development expenses for Q1 2025 were approximately ¥59.59 million, down from ¥72.05 million in Q1 2024, a decrease of about 17.2%[16]. - The company incurred a credit impairment loss of approximately ¥10.19 million in Q1 2025, significantly higher than the loss of ¥1.31 million in Q1 2024[16]. Management Assurance - The company is focused on maintaining financial transparency and accuracy in its reporting, as emphasized by the management's assurance of the report's integrity[2].

2025 年 4 月 29 日 晨会速递 分析师点评 市场数据 总量研究 【金融工程】各类行业主题基金普遍上涨，被动资金显著加仓黄金 ETF——基金市场 与 ESG 产品周报 20250428 本周权益型基金净值明显上涨，中长期纯债型基金业绩小幅回调；各类行业主题基金 均呈现上涨，新能源主题基金表现占优，上涨 2.76%。股票型 ETF 资金呈现净流出， 大盘宽基 ETF 为资金流出的主要方向，黄金 ETF 为代表的商品型 ETF 资金流入超百 亿。从主动资金行业配置动向看，有色金属、电子、银行等行业获主动资金增配。 【金融工程】市场波动温和提升，杠铃组合或占优——金融工程市场跟踪周报 20250428 上周 A 股窄幅震荡，市场整体表现不佳。主要宽基指数量能维持近期低位，量能择时 指标仍维持谨慎信号。资金面方面，ETF 资金周度净流出，大盘宽基 ETF 为净流出主 要方向。市场波动方面，主要宽基指数截面波动率、时序波动率环比上周皆有上升。 行业研究 【环保】25 年新增核准 10 台核电机组，可控核聚变领域近期频现突破——碳中和领 域动态跟踪（一百五十七）(买入) 我国核电项目审批已经进入规模化核准阶段。" ...

Summary of Nuclear Power Industry Conference Call Industry Overview - The nuclear power approval in China remains stable, with 10 nuclear units approved annually from 2023 to 2025, indicating the government's emphasis on nuclear power as an effective investment and economic growth driver [1][2] - The approval of new projects is expected to stimulate demand for natural uranium, with an estimated increase of approximately 2,400 tons annually, contributing to about 3% growth in the industry [1][10] Key Points Nuclear Power Approval and Economic Impact - The early approval of 10 nuclear units in April 2025 reflects the government's focus on effective investment and economic development [2] - The approval process is expected to maintain a steady pace, with no significant increase in the number of units approved in the future [4] Market Dynamics and Revenue Assurance - Despite intense market competition, nuclear power revenues are expected to remain secure due to large investment scales and long payback periods [5] - The demand for nuclear power equipment and materials is anticipated to accelerate due to the increased approvals [6] Natural Uranium Demand and Supply Challenges - New nuclear projects are projected to create stable and sustained demand for natural uranium, with a significant increase expected by 2030 [3][10] - The supply side of natural uranium faces challenges due to low capital expenditure from 2011 to 2021, leading to a potential supply gap of 9,000 to 10,000 tons by 2030, which may expand to over 30,000 tons by 2035 [12][13] Role of Nuclear Power in Energy Transition - The new approvals clarify the role of nuclear power in China's decarbonization process, contributing to both base load power generation and flexibility in the energy system [8] - The stable approval rhythm over the past three years enhances confidence in the related stock sectors [8] Companies to Watch - Key companies in the nuclear power supply chain include Shanghai Electric, Dongfang Electric, and Zhejiang Fu Holdings, with specific mention of Sichuan Huadu as the sole supplier of control rod drive mechanisms for the Hualong One reactor [3][9] - Xinneng Company, which relies heavily on nuclear power, is expected to see sustained demand growth due to the new approvals [11] Price Trends and Future Outlook - The price of natural uranium needs to rise in the coming years to stimulate production and meet future demand [14] - The global supply chain's stability is crucial for ensuring consistent supply, especially in the context of rising geopolitical tensions [14] Investment Opportunities - China General Nuclear Power Corporation (CGN) is highlighted as a key player in the uranium mining sector, with expected production of 1,300 tons in 2025 [15]

Group 1 - In Q1 2025, private enterprises issued 85 debt financing instruments in the interbank market, totaling 76.25 billion yuan, accounting for over 90% of corporate credit bonds [1] - Leading issuers include ZTE Corporation, Inner Mongolia Yili Industrial Group, and Huawei Investment Holding, with the number of private enterprise issuances continuing to expand compared to previous years [1] - The average issuance interest rate for private enterprise debt financing instruments was 2.86%, down 21 basis points year-on-year, indicating a favorable financing environment supported by national policies [1] Group 2 - The development of the private enterprise bond market has gone through four stages: initiation, rapid development, risk clearing, and moderate recovery, with net financing for private enterprises showing positive changes [2] - In Q1 2025, over 60 billion yuan was raised for new quality productivity private enterprises, focusing on strategic emerging industries such as new energy and high-end equipment [2] - The Central Committee emphasized the need for continuous support for key technologies and the introduction of a "technology board" in the bond market [2] Group 3 - The interbank market has introduced various innovative debt financing tools tailored to different industries and enterprise sizes, such as green bonds and sci-tech notes [3] - There is a need for enhanced market recognition of the value of private enterprises to better meet their financing needs [3] - Establishing regular communication mechanisms and diverse channels for interaction between investors and quality private enterprises is recommended to boost confidence in the private enterprise bond market [3] Group 4 - Private enterprise bond financing remains cost-effective due to sensitivity to interest rates, with expectations for continued improvement in bond issuance and net financing as new support tools are introduced [4]

Investment Rating - The report maintains a "Buy" rating for the industry, indicating an expected investment return exceeding 15% over the next 6-12 months compared to the market benchmark index [5][8]. Core Insights - The approval of 10 new nuclear power units marks a significant step in China's nuclear energy development, with a total of 28 new projects approved over the past seven years [2][5]. - The nuclear power equipment market is projected to see annual demand surpassing 87 billion yuan during the 14th Five-Year Plan period, with investments in nuclear island equipment expected to exceed 40 billion yuan in a single year [3]. - Breakthroughs in controllable nuclear fusion are being reported, with significant advancements in experimental devices, indicating a robust future for fusion energy projects in China [4][5]. Summary by Sections Nuclear Power Project Approvals - The recent approval includes five nuclear power projects, totaling 10 units, with a mix of different reactor types, including eight "Hualong One" units and two CAP1000 units [2]. Market Demand and Investment Projections - The investment scale for nuclear power equipment is expected to grow from 25.7 billion yuan in 2023 to a peak of 87.5 billion yuan by 2028, reflecting a compound annual growth rate (CAGR) of 26.91% [3]. Controllable Nuclear Fusion Developments - Recent achievements in nuclear fusion technology include successful high-temperature plasma operations and the construction of new experimental devices, with plans for a demonstration reactor in the future [4]. Investment Recommendations - The report suggests focusing on companies involved in nuclear island and conventional island equipment supply, as well as those engaged in controllable nuclear fusion projects, highlighting specific companies such as Harbin Electric, Dongfang Electric, and Shanghai Electric [5].

Investment Rating - The industry investment rating is Neutral, maintained [9] Core Insights - The report highlights three positive signals for the steel industry: 1) Steel prices and inventory have dropped to low levels, leading to a market sentiment of "hope for price increases"; 2) Expectations of production cuts are strengthening, which is driving profits in the futures market and supporting steel stock prices; 3) Improved expectations in the real estate sector may benefit the entire industry chain [2][6][12] Summary by Sections Market Trends - Since April, steel prices and stocks have been in a downward trend due to trade shocks. However, recent easing of trade conflicts has led to a rebound in steel stocks [2][6] - The apparent consumption of steel has decreased by 2.82% week-on-week and 4.02% year-on-year, indicating a seasonal decline in demand [4] Production and Inventory - Daily average pig iron production has risen to 2.4435 million tons, an increase of 4.23 thousand tons per day compared to the previous week [5] - National total inventory has decreased by 3.25% week-on-week, with long product inventory down 4.73% year-on-year [5] Price Movements - Shanghai rebar prices have increased to 3,200 CNY per ton, up 70 CNY from the previous week, while hot-rolled prices have risen to 3,230 CNY per ton, up 20 CNY [5] - The report notes that the market sentiment is shifting towards optimism as steel prices stabilize and inventory levels decrease [12] Investment Opportunities - The report suggests focusing on undervalued quality companies in the steel sector, such as Baosteel and Nanjing Steel, as well as companies with strong performance potential like Hualing Steel and New Steel [27]

Important Market News - The Ministry of Commerce and six other departments announced a notification to optimize the departure tax refund policy, lowering the threshold for tax refunds to 200 RMB for foreign travelers purchasing eligible goods [1] - The notification aims to enhance the supply of tax refund products, encouraging stores to offer a wider range of quality products, including traditional brands and cultural items [1] Industry Insights - UBTECH announced significant progress in its collaboration with major automotive manufacturers, signing a procurement contract for industrial humanoid robots, marking the first small-scale purchase of humanoid robots for manufacturing [2] - The humanoid robot market is expected to grow rapidly, with projections indicating it could exceed one trillion RMB in the next five years, driven by advancements in AI and technology [2] - The Chinese government is focusing on strengthening AI development and regulation, emphasizing breakthroughs in foundational theories and technologies [3] - Shenzhen has successfully deployed an AI governance assistant, improving efficiency in over 240 government scenarios by more than 20% [3] - The Ministry of Commerce's notification on departure tax refunds is expected to stimulate inbound tourism and consumer spending, enhancing the overall economic development [4] - The State Council approved multiple nuclear power projects, including five projects and ten new units, with a total investment exceeding 200 billion RMB [5] - The approval of these nuclear projects is seen as a significant boost to the economy, with potential benefits for companies in the nuclear power supply chain [5]

行 业 及 产 业 行 业 研 究 / 行 业 点 评 - 证券分析师 韩强 A0230518060003 hanqiang@swsresearch.com 武雨桐 A0230520090001 wuyt@swsresearch.com 穆少阳 A0230524070009 musy@swsresearch.com 达邵炜 (8621)23297818× dasw@swsresearch.com 国防军工 研究支持 达邵炜 A0230124030001 dasw@swsresearch.com 联系人 2025 年 04 月 27 日 季报利空逐渐出尽，订单有望持续 兑现 看好 —— 国防军工行业周报（2025 年第 18 周） 本期投资提示： ⚫ 上周申万国防军工指数上涨 0.15%，中证军工龙头指数下跌 0.38%，同期上证综指上 涨 0.56%，沪深 300 上涨 0.38%，创业板指上涨 1.74%，申万国防军工指数跑输创 业板指、跑输沪深 300、跑输上证综指、跑赢军工龙头指数。1、从细分板块来看，上 周国防军工板块 0.15%的涨幅在 31 个申万一级行业涨跌幅排名第 22 位。2、从我们构 建的 ...