Group 1 - A new company named China Energy Construction Bochuang Green Fuel (Shenyang) Co., Ltd. has been established, with Li Bo as the legal representative [1] - The company's business scope includes power generation, transmission, distribution, energy storage technology services, hydrogen refueling and storage facility sales, and battery sales [1] - The company is indirectly wholly owned by China Energy Construction [3]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has shown a significant recovery in its equipment manufacturing and power plant engineering businesses, with a notable increase in revenue in Q3 2025 [2][4] - The company is expected to enter a new growth phase with its hydrogen energy and flexible coal power transformation projects nearing commercialization [3][4] Summary by Sections Financial Performance - In Q3 2025, the company achieved total revenue of 22.45 billion yuan, a substantial increase of 52.33% year-on-year, while the net profit attributable to shareholders was 0.59 billion yuan, a decrease of 29.92% year-on-year [1] - For the first three quarters of 2025, the company reported a net profit of 3.44 billion yuan, down 28.46% year-on-year, primarily due to high base effects from significant asset disposals in the previous year [1][4] - The company's non-recurring net profit for the first three quarters was 3.08 billion yuan, reflecting a year-on-year growth of 34.85%, indicating improved profitability in core operations [1] Business Segments - The equipment manufacturing segment continued its strong growth trajectory, with revenue growth exceeding 20% in the first half of 2025, driven by demand for efficient boiler equipment and overseas market expansion [2] - The traditional power plant engineering business has shown signs of recovery, contributing positively to Q3 revenue growth [2] Future Outlook - The company is poised to realize new growth drivers from its hydrogen energy projects, with the first batch of large-scale electrolyzers successfully delivered for a hydrogen energy industrial park project [3] - The flexible transformation of coal power projects is also progressing, with successful field tests completed, indicating potential for future project orders [3][4] Valuation Metrics - The report projects the company's net profit attributable to shareholders for 2025-2027 to be 7.19 billion, 8.03 billion, and 9.07 billion yuan respectively, with corresponding EPS of 0.75, 0.84, and 0.95 yuan per share [4]

Core Viewpoint - The company experienced a significant decline in revenue and profit in the first half of 2025, primarily due to falling coke prices, but still managed to maintain profitability through cost control measures [1][3]. Financial Performance - Total operating revenue for the first half of 2025 was 20.549 billion RMB, a year-on-year decrease of 18.5% [1]. - Net profit for the same period was 87 million RMB, down 34% year-on-year, impacted by lower coke prices [1]. - The gross profit margin improved to 11.9%, an increase of 4.4 percentage points, attributed to effective cost-saving measures and a reduction in depreciation expenses [2]. Coke Business - Revenue from coke and coking operations was 6.36 billion RMB, a decrease of 35.2% year-on-year [1]. - The average price of coke fell to approximately 1,400 RMB per ton (excluding tax), a decline of about 30% year-on-year, but rebounded to around 1,500 RMB per ton by the end of July 2025 [1]. - The volume of coke produced increased by 330,000 tons year-on-year, totaling 10.88 million tons [1]. Chemical Business - Revenue from the chemical business was 9.1 billion RMB, down 12.6% year-on-year, primarily due to lower average prices for key products [2]. - The gross profit margin for the chemical segment was 8.3%, a decrease of 0.2 percentage points, with a tax-prepared profit of 190 million RMB, down 44.9% year-on-year [2]. Hydrogen Energy Business - Hydrogen sales reached 1,114 million cubic meters, a year-on-year increase of 20%, with hydrogen revenue of 56 million RMB, up 47% [2]. Operational Management and Trade - Revenue from operational management was 1.275 billion RMB, a decrease of 47% year-on-year, with a tax-prepared profit of 34 million RMB, down 41.2% [3]. - Trade business revenue increased by 53% to 3.73 billion RMB, although it incurred a tax-prepared loss of 184 million RMB, which widened by 8.2% year-on-year [3]. Future Outlook - The company has adjusted its net profit forecasts for 2025, 2026, and 2027 to 170 million, 480 million, and 1.06 billion RMB respectively, reflecting the impact of declining coke prices [1][3]. - The target price remains at 4.2 HKD, indicating a potential upside of 68% from the current stock price [1][3].