Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown steady growth in new contracts, with a significant increase in overseas business [5] - The company achieved a revenue of 21.68 billion yuan and a net profit of 1.42 billion yuan in the first half of 2025, reflecting a year-on-year growth of 3.7% and 1.6% respectively [4] - The overseas revenue accounted for over half of the total revenue, indicating a strong international presence [6] Summary by Sections Revenue Performance - In the first half of 2025, the company reported revenues of 21.68 billion yuan, with a net profit of 1.42 billion yuan, showing a year-on-year increase of 3.7% and 1.6% respectively [4] - The second quarter of 2025 saw revenues of 11.53 billion yuan, with a net profit of 760 million yuan, reflecting an 8.7% increase in revenue but a slight decline in net profit by 0.6% [4] New Contracts - The company signed new contracts worth 41.164 billion yuan in the first half of 2025, a year-on-year increase of 11%, with overseas contracts growing by 19% to 27.84 billion yuan [5] - The company secured 13 overseas cement projects in countries such as Iraq, South Africa, and Colombia, contributing to a 118% increase in overseas equipment contracts [5] Business Segments - The company’s revenue from engineering services, operations, and equipment in the first half of 2025 was 12.58 billion yuan, 6.24 billion yuan, and 2.31 billion yuan respectively, with year-on-year growth of 3.9%, 9.9%, and a decline of 20.8% [6] - The overseas engineering services and equipment revenue grew by 29.6% and 24.7% respectively, indicating robust international demand [6] Profitability and Costs - The gross margin for the first half of 2025 was 16.7%, a decrease of 2.67 percentage points year-on-year, attributed to weak domestic demand and increased costs [7] - The company maintained good control over its expense ratios, with sales, management, and R&D expense ratios showing slight improvements [7] Financial Forecasts - The company’s projected net profit for 2025 is 3.264 billion yuan, with a growth rate of 9.43% [9] - The estimated revenue for 2025 is 49.44 billion yuan, reflecting a growth rate of 7.18% [9]