Investment Rating - The investment rating for the company is "Accumulate" [4] Core Views - The company has experienced rapid growth in performance over the past two quarters, with continuous advancement in various business segments, indicating a promising future [1] - The company reported a revenue of 873 million yuan for 2024, representing a year-on-year growth of 26.23%, while the net profit attributable to the parent company was 113 million yuan, a decrease of 15.03% [1] - In Q1 2025, the company achieved a revenue of 215 million yuan, a year-on-year increase of 51.88%, and a net profit of 32.75 million yuan, up 64.98% year-on-year [1] Summary by Sections Business Performance - The HVAC business saw a revenue increase of 11.57% in 2024, stabilizing after previous declines, supported by a comprehensive service capability from sensor production to complete machine solutions [2] - The industrial and safety business experienced significant growth, with a revenue increase of 136.01% in 2024, driven by products like refrigerant leak monitoring sensors [2] - The automotive electronics segment grew by 15.97% in 2024, with new projects contributing 817 million yuan [2] - The medical health business revenue decreased by 52.32% in 2024 due to normalization after a health event in 2023 [2] - The smart metering business grew by 62.37% in 2024, while the scientific instruments segment increased by 8.25% [2] - The low-carbon thermal engineering business made breakthroughs through strategic acquisitions, enhancing the supply chain for gas wall-hung boilers [2] Strategic Investments - The company strategically invested in key components of premixed condensing gas wall-hung boilers, acquiring 57.14% of Nopu Thermal Energy and 51% of Jingding Electric, integrating resources for a comprehensive supply chain solution [3] Financial Forecast and Valuation - The company is expected to achieve net profits of 155 million yuan, 207 million yuan, and 276 million yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 26, 19, and 15 [4] - The company maintains a stable customer base with significant opportunities arising from the expanding market for gas sensors and analysis instruments [4]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [4]. Core Views - The company has experienced rapid growth in revenue and net profit across various business segments, indicating a positive outlook for future performance [1][2]. - The company is actively expanding its market presence and enhancing its product offerings, particularly in HVAC, industrial safety, automotive electronics, medical health, smart metering, and scientific instruments [2][3]. Summary by Sections Financial Performance - In 2024, the company achieved revenue of 873 million yuan, a year-on-year increase of 26.23%, while the net profit attributable to the parent company was 113 million yuan, a decrease of 15.03% [1]. - For Q1 2025, the company reported revenue of 215 million yuan, a year-on-year increase of 51.88%, and a net profit of 32.75 million yuan, up 64.98% [1]. Business Segments - HVAC business revenue grew by 11.57% in 2024, stabilizing after previous declines, supported by a comprehensive service capability [2]. - Industrial and safety business revenue surged by 136.01%, driven by products like refrigerant leak monitoring sensors [2]. - Automotive electronics revenue increased by 15.97%, with significant project deliveries and new product developments [2]. - Medical health business revenue declined by 52.32% due to normalization after a health event in 2023 [2]. - Smart metering business revenue grew by 62.37%, while scientific instruments revenue increased by 8.25% [2]. Strategic Investments - The company made strategic investments in key components for gas wall-hung boilers, acquiring significant stakes in Nopu Thermal Energy and Jingding Electric, enhancing its supply chain capabilities [3]. Profit Forecast - The company is expected to achieve net profits of 155 million yuan, 207 million yuan, and 276 million yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 26, 19, and 15 [4].

Report Overview - The report is a macro financial data daily report released by the Guomao Futures Research Institute's Macro Financial Research Center on May 7, 2025 [2][3] Central Bank Operations and Monetary Policy - The central bank conducted 405 billion yuan of reverse repurchase operations yesterday, with 1087 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 682 billion yuan [3] - This week, 1617.8 billion yuan of reverse repurchases in the central bank's open market will mature, with 1087 billion yuan and 530.8 billion yuan maturing on Tuesday and Wednesday respectively [4] - The Politburo meeting stated the need to "timely cut reserve - requirement ratios and interest rates", "create new structural monetary policy tools, and establish new policy - based financial tools to support technological innovation, expand consumption, and stabilize foreign trade" [4] Interest Rate Market | Variety | Closing Price | Change from Previous Day (bp) | | --- | --- | --- | | DRO01 | 1.71 | -7.58 | | DR007 | 1.73 | -7.14 | | GC001 | 1.71 | 17.00 | | GC007 | 1.74 | 1.50 | | SHBOR 3M | 1.75 | -0.20 | | LPR 5 - year | 3.60 | 0.00 | | 1 - year Treasury Bond | 1.46 | 0.25 | | 5 - year Treasury Bond | 1.51 | 0.75 | | 10 - year Treasury Bond | 1.63 | 0.50 | | 10 - year US Treasury Bond | 4.36 | 3.00 | [3] Stock Index and Futures Market Index Performance - The CSI 300 rose 1.01% to 3808.5, the SSE 50 rose 0.55% to 2647.7, the CSI 500 rose 1.93% to 5740.3, and the CSI 1000 rose 2.57% to 6102.9 [6] - The trading volume of the Shanghai and Shenzhen stock markets reached 1336.2 billion yuan, an increase of 166.8 billion yuan from the previous trading day [6] - Most industry sectors rose, with small metals, power equipment, consumer electronics, precious metals, general equipment, communication equipment, computer equipment, diversified finance, and motor sectors leading the gains, while only the banking sector declined [6] Futures Market | Variety | Closing Price | Change from Previous Day (%) | Volume Change (%) | Open Interest Change (%) | | --- | --- | --- | --- | --- | | IF Current Month | 3798 | 1.2 | 22.8 | 0.9 | | IH Current Month | 2646 | 0.7 | -0.6 | 0.0 | | IC Current Month | 5706 | 2.1 | 19.0 | 3.3 | | IM Current Month | 6060 | 2.6 | 1.6 | 2.9 | [5] Market Outlook and Strategy - On the first trading day after the holiday, the A - share market showed a gap - up and high - going trend driven by the collective recovery of overseas markets, with IM leading the gains in index futures [7] - Two repair drivers are worthy of attention: the expectation of Sino - US tariff relaxation and the verification of overseas AI industry prosperity are beneficial to improving market liquidity and boosting the technology sector; after the earnings disclosure window in late April, the performance uncertainty of small - and medium - cap companies has significantly decreased [7] - The CSI 1000's repair strength has significantly lagged behind large - cap indexes such as the CSI 300. If the market continues to recover, its technical catch - up potential is worthy of attention. Historically, the average excess return of CSI 1000 index constituents during the earnings vacuum period (May - July) is 2.3% [7] - It is expected that the significant differentiation between large - and small - cap styles may converge. The strategy is to focus on the elasticity release opportunities of small - and medium - cap stocks after the market stabilizes, with IM as the main long - position variety [7] Index Futures Premium and Discount | Variety | Current Month Contract | Next Month Contract | Current Quarter Contract | Next Quarter Contract | | --- | --- | --- | --- | --- | | IF Premium/Discount | 10.49% | 9.02% | 7.04% | 5.35% | | IH Premium/Discount | 2.64% | 5.55% | 5.00% | 3.24% | | IC Premium/Discount | 22.09% | 16.72% | 11.98% | 9.90% | | IM Premium/Discount | 25.91% | 19.90% | 14.46% | 12.20% | [8]

Market Performance - On May 6, A-shares opened high and closed at their daily peak, with the Shanghai Composite Index rising by 1.13%, the Shenzhen Component Index by 1.84%, and the ChiNext Index by 1.97%[1] - The total trading volume in the Shanghai and Shenzhen markets reached 1.336 trillion yuan, an increase of over 160 billion yuan compared to the previous trading day[1] - More than 4,900 stocks in the two markets rose, indicating a broad-based market rally[1] Sector Trends - Key sectors that performed well included IT services, machinery, communications, electronics, media, electricity, and automobiles[1] - The concept sectors showing significant gains were controlled nuclear fusion, superconductors, rare earth permanent magnets, Huawei Harmony, and optical communication[1] Market Sentiment - The market's resilience against external shocks was highlighted by the positive performance following the May Day holiday, suggesting an increase in risk appetite among investors[1] - The Shanghai Composite Index rebounded above the 3,300-point mark, indicating a strengthening market trend[4] Fund Flows - On May 6, net inflows into the Shanghai and Shenzhen markets were 20.207 billion yuan and 15.338 billion yuan, respectively[5] - The top three sectors for net inflows were IT services, general equipment, and communication equipment, while the sectors with the largest outflows included city commercial banks, large state-owned banks, and precious metals[5] Economic Indicators - The Caixin China Services PMI fell to 50.7 in April, the lowest in seven months, indicating a slowdown in service sector activity[6] - The number of people entering and exiting the country during the May Day holiday reached 10.896 million, a year-on-year increase of 28.7%[10] Industry Developments - In Q1 2025, global shipments of large-sized LCD TV panels increased by 11.5% year-on-year, with a total of 63 million units shipped[11] - The average size of LCD TV panels shipped was 49.5 inches, reflecting a trend towards larger screen sizes[11]

Group 1 - The core viewpoint of the news is that Jiangsu Shentong's gross margin fluctuations in 2024 are attributed to varying product structures across quarters, with a normal gross margin of 36.75% for nuclear power [1] - The nuclear power units approved in 2024 are expected to be delivered gradually from 2026 to 2027 [1] - The delivery cycle for valve products in metallurgy and energy chemical sectors is 3-6 months, while the execution cycle for energy-saving technology service contracts is 6-8 years [1] Group 2 - The "Valve Butler" business has been launched with multiple steel users and is being promoted to other large steel enterprises [1] - The main revenue source for Ruifan Energy Saving comes from the coal gas power generation project of Handan Steel [1] - The company plans to complete the bidding for valve equipment for ten new units by the end of 2025 to the first quarter of 2026, with deliveries occurring in batches over the next 2-3 years [1] Group 3 - The company supplies various nuclear-grade valves, and the market competition is described as healthy [1] - The equity transfer aims to integrate industry resources to support the future development of Shentong Semiconductor [1] - The company emphasizes that the safe and efficient development of nuclear power aligns with China's established energy strategy, with a growing demand for clean energy leading to continued investment in R&D for high-quality nuclear power valve products [1]

Group 1: Investor Relations Activity Overview - The investor relations activity was an earnings presentation held on April 30, 2025, via an online platform [4] - Participants included the Chairman, General Manager, Board Secretary, and representatives from the underwriting securities firm [4] Group 2: Financial Performance - The company's 2024 main business revenue was CNY 332.99 million, with heat exchanger revenue at CNY 224.48 million and heat system revenue at CNY 108.51 million [5] - The overall revenue remained stable compared to the previous year, with industry peers also showing stability [5] Group 3: Impact of External Factors - The impact of national tariff measures on the company is minimal as related business accounts for a low percentage of total operations [5] - The company plans to enhance overseas market expansion and increase potential customer development [5] Group 4: Profitability and Challenges - The net profit declined due to rising raw material costs and increased labor depreciation, despite a slight revenue increase [5] - The company is focusing on emerging sectors like hydrogen energy and energy storage for future revenue growth [5] Group 5: Governance and Internal Control - The company has established a sound governance structure and effective internal control mechanisms, with no accounting errors reported for 2024 [5] Group 6: Research and Development - R&D investment for 2024 was CNY 15.26 million, accounting for 4.40% of total revenue [6] - Future R&D will focus on integrated products, diversification, and new energy market development [6] Group 7: Market Outlook - The heat exchanger industry has a broad application scope, with significant growth potential in new energy and infrastructure sectors [7] - The company aims to leverage its diverse product applications and strategic market development for future profitability [7]

Market Performance - A-shares experienced a comprehensive rise after the "May Day" holiday, with the Shanghai Composite Index increasing by 1.13% to 3316.11 points, the Shenzhen Composite Index rising by 2.25%, and the ChiNext Index surging by 2.75% [1] - The total trading volume across A-shares reached 1.3644 trillion yuan, significantly higher than the 1.1931 trillion yuan recorded on the last trading day before the holiday [1] Sector Performance - Sectors such as controllable nuclear fusion, Huawei HarmonyOS concept stocks, superconductors, rare earths, precious metals, general equipment, and communication equipment showed relatively strong performance [1] - The banking sector was one of the few to experience a slight decline, while the tourism sector saw minor increases, indicating weaker performance compared to other sectors [1] Economic Indicators - During the holiday, 314 million domestic trips were made, representing a year-on-year increase of 6.4%, with total spending by domestic tourists reaching 180.269 billion yuan, up 8.0% year-on-year [1] - The April Caixin Services Purchasing Managers' Index (PMI) fell to 50.7 from 51.9 in March, below the expected 51.8, while the manufacturing PMI slightly improved to 50.4 from 51.2, exceeding the expected 49.8 [1] External Market Influences - The US stock market experienced a slight pullback after a series of gains, while the Hong Kong stock market saw minor increases upon reopening [2] - The offshore RMB exchange rate continued to show strength, fluctuating around 7.21, despite a slight decrease in the rate of appreciation [2] - The upcoming Federal Reserve meeting is anticipated to maintain current interest rates, with potential for rate cuts later in the year [2] Investment Outlook - The A-share market is expected to maintain a consolidation pattern, with sector focus likely revolving around tariff-related news [2] - There is a possibility of stronger fiscal or monetary policies from management, which could create investment opportunities in directly benefiting sectors [2] - Technology and consumer sectors are viewed as having more opportunities for investment this year, suggesting a strategic allocation towards these areas [2]

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company achieved a revenue of 2.16 billion yuan in 2024, representing a year-on-year increase of 17.07%. However, the net profit attributable to the parent company was 153 million yuan, a decrease of 15.87% year-on-year. Notably, the revenue for Q4 2024 was 787 million yuan, up 51.65% year-on-year, and the net profit for the same quarter was 84 million yuan, exceeding the total net profit of the first three quarters combined [1]. - In Q1 2025, the company reported a revenue of 574 million yuan, a significant increase of 109.02% year-on-year, and a net profit of 62 million yuan, marking a staggering increase of 1104.89% year-on-year [1]. - The company anticipates substantial growth in revenue from data centers and semiconductor temperature control solutions [2]. Financial Performance Summary - In 2024, the company's liquid temperature control equipment revenue reached 1.466 billion yuan, a year-on-year increase of 20.65%, with a gross margin of 21.22%, down 3.93 percentage points year-on-year. The revenue from energy storage temperature control was approximately 1.176 billion yuan, up 30% year-on-year [2]. - The company has expanded its client base in the semiconductor manufacturing equipment sector, including notable clients such as Northern Huachuang and Jing Sheng Machinery [2]. - The financial projections for the company indicate expected net profits of 288 million yuan, 425 million yuan, and 608 million yuan for 2025, 2026, and 2027, respectively, reflecting year-on-year growth rates of 87.6%, 47.7%, and 43.1% [4][5]. Key Financial Metrics - The company's revenue for 2023 was 1.845 billion yuan, with a projected revenue of 3.404 billion yuan for 2025, indicating a growth rate of 57.6% [5]. - The earnings per share (EPS) for 2024 is projected to be 0.91 yuan, with an expected increase to 1.70 yuan in 2025 [5]. - The net profit margin for 2024 is projected to be 7.1%, with expectations of improvement in subsequent years [10].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking it as the first rating given [5]. Core Viewpoints - The company is a leader in the small modulus gear industry and is expanding into humanoid robotics as a second growth curve [1]. - The company has established a solid foothold in the overseas market and is leveraging its technological advantages to capture opportunities in the new energy transmission sector [2]. - The company is expected to see significant revenue growth from its robotics business, which is anticipated to open new revenue streams [3]. Summary by Sections 1. Company Overview - The company has been focused on small modulus gear research and production since its establishment in 1995, achieving significant technological breakthroughs [1]. - It has built a stable supply chain relationship with international giants like Bosch and Makita, maintaining a nearly 20-year partnership with Bosch [1]. - The company has established sales networks in markets like Germany and is expanding production capacity in Southeast Asia to strengthen its overseas market position [1]. 2. New Energy Transmission Sector - The company is developing high-precision gears and precision reducers for the new energy vehicle sector, capitalizing on the industry's demand for high-quality components [2]. - Investments include a production line in Vietnam with an annual capacity of 8 million sets of small modulus gears and a new line in Malaysia for high-precision transmission gears [2]. - The company is expected to accelerate revenue growth in the new energy transmission sector, with improving gross margins [2]. 3. Humanoid Robotics Business - The company is leveraging its expertise in planetary and harmonic reducers to enter the humanoid robotics market [3]. - It has developed a self-researched harmonic reducer that is set to achieve mass production in the second half of 2024, with core production equipment imported from Japan [3]. - Collaborations with Tsinghua University's Star Dynamics have led to the development of micro-reducers for dexterous hands, which are now in small-batch production [3]. 4. Financial Performance and Forecast - The company is projected to achieve revenues of 640 million yuan, 890 million yuan, and 1.35 billion yuan from 2025 to 2027, with net profits expected to reach 41 million yuan, 72 million yuan, and 118 million yuan respectively [3]. - The company is expected to benefit from a strong growth elasticity and valuation reappraisal potential [3]. 5. Business Structure and Product Lines - The company has diversified its business into five key areas, including intelligent furniture drives, new energy transmission gears, and precision reducers [19]. - In 2024, the revenue breakdown shows that gears account for 47.53%, precision reducers for 25.71%, and pneumatic tools for 24.13% of total revenue [20][21]. - The company has a robust product matrix that supports its competitive position in various emerging application scenarios [21].

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - In Q1 2025, the company achieved total revenue of 170 million yuan, a year-on-year increase of 11%, while net profit attributable to shareholders decreased by 40% [2] - High-end products and solutions showed remarkable growth, with high-end product sales increasing by 59% year-on-year, and sales of high-end digital oscilloscopes (bandwidth ≥ 2GHz) rising by 52% [2] - The gross profit margin improved to 56.2%, up 1.3 percentage points year-on-year, while the net profit margin decreased to 2.3%, down 4.1 percentage points year-on-year [3] - The company announced a share buyback plan of no less than 30 million yuan and no more than 50 million yuan, aimed at employee stock incentive plans [4] Financial Summary - Total revenue forecast for 2023 is 670.54 million yuan, with a projected growth of 6.34% year-on-year, and net profit forecast of 107.95 million yuan, reflecting a year-on-year increase of 16.72% [1] - The company expects to achieve a total revenue of 919.70 million yuan in 2025, with a year-on-year growth of 18.55%, and net profit of 134.04 million yuan, indicating a significant recovery with a growth rate of 45.22% [1][10] - The company’s R&D expenses are expected to increase significantly due to the establishment of R&D centers in Xi'an, Shanghai, and Malaysia [3]