Core Viewpoint - The company has been dedicated to the research of key thermal equipment and systems, particularly molten salt storage and steam generation systems, since 2010, showcasing its commitment to innovation in energy technology [1] Group 1: Technology Development - The company has developed a large-capacity molten salt heat absorber and steam generation system suitable for solar thermal and storage systems, which has been recognized as the first major technological equipment in the national energy sector [1] - The molten salt energy storage technology is a significant competitive advantage for the company, enabling applications in solar thermal power generation, user-side energy storage, flexible transformation of thermal power, and zero-carbon parks [1] Group 2: Project Experience - The company has accumulated extensive experience in the construction and operation of molten salt energy storage projects, indicating a strong operational capability in this field [1] Group 3: Future Opportunities - The company is focusing on the application layout of third-generation and fourth-generation nuclear reactors, particularly in thorium-based molten salt reactors, which are seen as a core path for fourth-generation nuclear technology [1] - The company aims to leverage its technological advantages to participate in future demonstration projects and commercialization opportunities related to thorium-based molten salt reactors [1]

Core Viewpoint - The company is actively focusing on and seeking to participate in subsequent thorium-based molten salt reactor demonstration projects and commercialization opportunities [1] Group 1: Company Overview - The company has been dedicated to the research of key thermal equipment and systems, such as molten salt thermal storage and steam generation systems, since 2010 [1] - The self-developed "high-power molten salt heat absorber and molten salt steam generation system suitable for solar thermal and thermal storage systems" has won recognition as the first major technological equipment in the national energy sector [1] - The company has accumulated rich experience in the construction and operation of molten salt energy storage projects, leveraging its competitive advantage in molten salt storage technology [1] Group 2: Industry Focus - The company is focusing on various energy utilization scenarios, including solar thermal power generation, user-side energy storage, flexible transformation of thermal power, and zero-carbon parks [1] - Thorium-based molten salt reactors are identified as a core pathway for fourth-generation nuclear power technology, with recent successful operation of a small experimental thorium-based molten salt reactor [1] - The company plans to leverage its technological reserves to enhance the application layout of third-generation and fourth-generation reactors [1]

Core Viewpoint - Zhejiang Kesheng Technology Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, primarily generating revenue from services related to molten salt tower solar thermal power projects, with significant reliance on a few major clients [1][2]. Revenue Dependency - The company’s revenue from its top five clients accounted for 99.9%, 99.9%, 88.5%, and 99.9% of total revenue for the years 2022, 2023, 2024, and the first half of 2025, respectively [2] - Revenue from the single largest client represented 93.3%, 84.8%, 22.3%, and 28.5% for the same periods [2]. Financial Performance - The company reported revenues of 20.85 million yuan, 858 million yuan, 2.189 billion yuan, and 981 million yuan for the years 2022, 2023, 2024, and the first half of 2025, respectively [2] - Net profits were -91 million yuan, 248 million yuan, 540 million yuan, and 233 million yuan for the same periods [2]. Supplier Relationships - The procurement amounts to the top five suppliers accounted for 50.7%, 52.9%, 44.4%, and 37.4% of the total material procurement costs for the years 2022, 2023, 2024, and the first half of 2025, respectively [3]. Research and Development - The company’s R&D expenditures were 33 million yuan, 38 million yuan, 62 million yuan, and 27 million yuan for the years 2022, 2023, 2024, and the first half of 2025, respectively [4]. Fund Utilization - The raised funds will be used for expanding the R&D center, enhancing core technology research, promoting molten salt energy storage technology, purchasing equipment for production, upgrading operational facilities, and supporting daily operations and future business development [4]. Industry Dependency - The solar thermal power industry is highly dependent on policy support, and any changes in renewable energy targets or support policies could significantly impact revenue and growth prospects [5].

Core Viewpoint - Kesheng Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, aiming to raise funds for core technology research, innovative molten salt energy storage technology deployment, and smart production facilities to enhance operational efficiency [2][4]. Financial Performance - From 2022 to 2024, Kesheng Technology's revenue surged from 20.85 million to 2.189 billion, with a compound annual growth rate of 924.64%. Net profit transitioned from a loss of 91.25 million to a profit of 540 million, indicating rapid growth [2][9]. - However, in the first half of 2025, revenue and net profit growth significantly slowed, raising questions about the sustainability of high growth rates [2][9]. - The company's revenue heavily relies on the sale of concentrated solar power systems, with 99.6%, 95%, and 99% of total revenue from these systems in 2023, 2024, and the first half of 2025, respectively, indicating a highly concentrated product structure [9][10]. Profitability Concerns - Approximately 60% of Kesheng Technology's net profit in 2023 came from the sale of several joint ventures, suggesting potential "water" in profitability [2][10]. - The company reported significant other income, which included government subsidies and interest income, contributing to net profit in the reporting period [10][11]. Customer and Supplier Risks - Kesheng Technology has a high customer concentration, with revenue from the top five customers accounting for about 99.9% in most years, indicating a significant dependency risk [12][13]. - The company has seen a substantial increase in accounts receivable and contract assets, which accounted for over 33% of total assets as of June 30, 2025, raising concerns about potential impairment risks [12][13]. Operational Model - The company operates on a light asset model, focusing on core technology output and high-value system assembly, which helps reduce initial fixed asset investments [14][15]. - However, reliance on outsourced production poses risks related to supply chain coordination, quality control, and operational execution, which could impact financial performance [15][16]. Cost and Margin Trends - Rising prices of key materials like reflective glass and molten salt could increase production costs, squeezing profit margins. The company's gross margin has shown a declining trend, from 36.1% in 2023 to 31.7% in 2024, with a slight recovery to 31.9% in the first half of 2025 [16].

Group 1: Market Outlook and Investment - The company anticipates growth in the coal power market during the "14th Five-Year Plan" period, influenced by capacity pricing, energy-saving transformations, carbon trading, and new development plans [2] - The company's photovoltaic projects are primarily located in Shandong, including Heze and Yantai [2] Group 2: Technological Advancements - The company is actively developing molten salt energy storage technology, having completed China's first molten salt thermal energy storage project, which enhances the peak regulation capability of thermal power units [3] - The company proposes a transparent boiler concept that utilizes online monitoring, sensors, data collection, and intelligent analysis to achieve digital and visual operation of boilers, supporting remote control and system diagnostics [3] Group 3: Cost Influences and Material Impact - Precious metals such as copper and silver significantly impact the production costs of the company's products [3] Group 4: International Expansion - The company is tracking coal power renovation demands in markets like South Africa, Vietnam, Indonesia, India, and Russia, and has established a subsidiary in South Africa to accelerate international development and promote energy-saving technologies [3]

Core Viewpoint - The company, a supplier of equipment with nuclear manufacturing qualifications, is actively expanding its order opportunities in the nuclear power market, with a focus on new energy, nuclear power, and overseas markets as future growth directions [2][3][4]. Group 1: Company Overview - The company has over 20 years of experience in the nuclear power sector and holds nuclear manufacturing licenses for levels II and III, participating in the supply of various nuclear power station equipment [4][5]. - The company has upgraded its manufacturing base to include a dedicated clean workshop for nuclear power equipment, enhancing its manufacturing capabilities [5]. Group 2: Order and Market Opportunities - As of June, the company has over 61 billion yuan in hand orders, with new orders totaling approximately 27.84 billion yuan in the first half of the year, including 7.03 billion yuan for waste heat boilers and 2.81 billion yuan for clean energy equipment [7][8]. - The company is focusing on three main growth areas: new energy, nuclear power, and overseas markets, leveraging its core technologies and products to expand internationally [8][9]. Group 3: Technological and Market Advantages - The company has participated in 17 solar thermal power demonstration projects, establishing a strong market and technological lead in this field [10]. - The Qinghai Delingha 50MW solar thermal project, which the company contributed to, is recognized as a benchmark for solar thermal power generation, achieving significant operational milestones [10]. Group 4: Future Directions - The company aims to deepen its involvement in the "new energy + energy storage" sector, focusing on the industrial application of molten salt energy storage technology to support the development of a clean, low-carbon energy system [11][12].

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company, Wuchan Zhongda Energy, is a state-owned enterprise in Zhejiang Province, transitioning from coal circulation to an integrated environmental energy service provider. It has a history dating back to 1950 and has expanded into the renewable energy sector since 2022 [4][14]. - The coal circulation business is stable, with the company leveraging its procurement advantages and technological capabilities to provide integrated services to suppliers and customers [36]. - The company operates six thermal power plants with a total installed capacity of 407 MW, focusing on stable demand in the Zhejiang region. It is also exploring waste disposal technologies [5][43]. - In the renewable energy sector, the company is advancing molten salt energy storage technology, which is expected to see significant growth in the coming years [49]. Summary by Sections Company Overview - Latest closing price: 12.77 CNY - Total shares: 5.58 billion - Total market capitalization: 71 billion CNY - Debt-to-asset ratio: 44.0% - Price-to-earnings ratio: 9.67 [3]. Business Segments - **Coal Circulation**: The primary revenue driver, accounting for 92.8% of revenue in 2024. The business is characterized by low margins but high turnover [26][36]. - **Thermal Power Generation**: The company has a stable demand in the Zhejiang region, with significant sales growth in steam and electricity [43][45]. - **Renewable Energy**: Focused on molten salt storage technology, with expected growth in installed capacity and investment [49]. Financial Forecasts - Projected revenues for 2025-2027 are 452.7 billion, 458.2 billion, and 463.6 billion CNY, respectively. Net profits are expected to be 7.9 billion, 8.5 billion, and 9.1 billion CNY, with a CAGR of 7.5% [6][57]. - The diluted EPS for the same period is forecasted at 1.42, 1.52, and 1.64 CNY [6][57]. Valuation and Rating - The company’s stock is expected to trade at PE multiples of 9, 8, and 8 times for the years 2025-2027, respectively. The report suggests a "Buy" rating based on the potential for further value expansion in thermal power assets [59].