Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has shown significant growth in Q1 2025, with revenue reaching 619 million yuan, a year-on-year increase of 317.34%, and net profit attributable to shareholders at 69 million yuan, up 990.26% [1] - The substantial growth is primarily driven by the completion of the "Fish-Solar Complementary" project, which contributed significantly to the company's performance [1] - The company is positioned to benefit from the increasing demand for coal power upgrades and auxiliary equipment, with a projected market potential of 700 million to 2.9 billion yuan over the next three years [2] - The company is actively expanding into international markets and diversifying its product offerings, which are expected to become new growth engines for future performance [3] Financial Summary - The company is projected to achieve revenues of 1.987 billion yuan in 2025, with a year-on-year growth rate of 51.2%, and net profits of 212 million yuan, reflecting a growth rate of 128.2% [4] - Earnings per share (EPS) are expected to be 1.72 yuan in 2025, with corresponding price-to-earnings (P/E) ratios of 15.1, 12.4, and 10.4 for 2025, 2026, and 2027 respectively [4][5] - The financial outlook indicates a steady increase in revenue and profit margins, with net profit margins projected to improve from 8.4% in 2023 to 11.1% by 2027 [4]

Investment Rating - The report maintains a "Buy" rating for the company [1][10][11] Core Insights - The company achieved significant growth in operating cash flow in Q4, with a year-on-year increase of 167% [7] - Despite a decline in revenue and net profit for 2024, the company is expected to see a recovery in revenue growth in the chemical sector in H2 2024 [6][10] - The expansion of supporting equipment business has shown remarkable results, with a 91.7% increase in related revenue [7] Financial Performance Summary - In 2024, the company reported operating revenue of 6.13 billion yuan, a decrease of 1.9% year-on-year, and a net profit attributable to shareholders of 850 million yuan, down 15.9% [5][10] - Q4 2024 revenue was 1.43 billion yuan, down 11% year-on-year, with a net profit of 180 million yuan, down 31.8% [5][10] - The company plans to distribute a cash dividend of 1.06 yuan per share for the year, totaling 611 million yuan, which represents 72.04% of the net profit [5] Revenue and Profit Forecast - Projected revenues for 2025-2027 are 6.46 billion, 7.11 billion, and 8.01 billion yuan respectively, with corresponding net profits of 890 million, 960 million, and 1.03 billion yuan [10][11] - The expected growth rates for revenue are 5%, 10%, and 13% for the years 2025, 2026, and 2027 respectively [10] Valuation Metrics - The report indicates a projected P/E ratio of 11 for 2025, decreasing to 9 for 2027 [10][11] - The company maintains a stable ROE of 19% across the forecast period [10][11]

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company is positioned as a leader in the thermal power environmental protection equipment sector, with a focus on expanding product categories and international markets, indicating strong growth potential [1][3]. - The company has demonstrated significant revenue growth, with a 45.81% year-on-year increase in revenue for the first half of 2024, and an 86.04% increase in net profit attributable to shareholders [1][23]. - The company has a solid technical foundation with 40 core technologies and a comprehensive range of energy-saving and environmental protection solutions [1][22]. Summary by Sections 1. Company Overview - Founded in 2006, the company has developed a complete energy-saving and environmental protection industry layout, listing on the Sci-Tech Innovation Board in 2021 [1]. - The actual controller holds 30.11% of the shares, indicating a stable and concentrated ownership structure [1][19]. 2. Market Demand and Growth - The company’s business is closely tied to the power industry, which accounts for nearly 80% of its revenue, benefiting from the ongoing upgrades and renovations in coal power plants [2]. - The potential annual market size for the company's traditional business segment is estimated to reach between 700 million to 2.9 billion yuan from 2025 to 2027 [2]. 3. International Expansion and New Projects - The company is actively expanding into international markets, establishing a subsidiary in 2024 and forming strategic partnerships, including a significant contract with a South Korean company worth approximately 15.89 million USD [3][4]. - The company is also investing in innovative projects such as a 90 MW fish-solar complementary project in collaboration with Singapore Energy Group, with a total investment of 549 million yuan [3]. 4. Financial Performance and Forecast - The company’s revenue is projected to grow from 1.314 billion yuan in 2024 to 2.375 billion yuan in 2026, with corresponding net profits expected to rise significantly [4][5]. - The earnings per share (EPS) are forecasted to increase from 0.76 yuan in 2024 to 2.18 yuan in 2026, reflecting strong growth potential [4][5]. 5. Shareholder Returns and Incentives - The company has committed to a dividend policy ensuring that at least 30% of net profits will be distributed to shareholders from 2024 to 2026 [37]. - A stock incentive plan for 2024-2025 aims to align the interests of the management team with those of the shareholders, enhancing company vitality [37].