Core Viewpoint - Nantong Planet Graphite Co., Ltd. maintains a stable credit rating of A+ for both the company and its convertible bonds, indicating strong financial health and operational stability despite a decline in revenue due to weak downstream market demand [1][5][6]. Company Overview - The company, originally established in 2001, transitioned to a joint-stock company in 2019 and was listed on the Shanghai Stock Exchange in 2021 [11]. - As of March 2025, the company has a total equity of 1.45 billion shares, with major shareholders being Zhang Yi and Qian Shujuan, holding 53.53% and 12.44% of shares respectively [11][12]. Financial Performance - In 2024, the company reported total revenue of 6.33 billion yuan, a decrease of 17.92% year-on-year, primarily due to reduced sales volume in the graphite equipment sector [6][21]. - The gross profit margin improved due to a higher proportion of revenue from high-margin products like synthetic furnaces [6][21]. - As of the end of 2024, cash assets amounted to 1.343 billion yuan, representing 45.76% of total assets, with a significant increase in net cash inflow from operating activities [6][8]. Debt and Credit Rating - The company has issued convertible bonds totaling 620 million yuan, with a low probability of default due to favorable terms that encourage bondholders to convert to equity [6][10]. - The company's debt burden is light, with strong debt repayment indicators, and it has maintained a stable credit outlook [6][7]. Industry Analysis - The graphite equipment industry is characterized by cyclical demand, with significant reliance on raw material prices, which can impact profitability [8][17]. - The market for graphite equipment is expected to grow, driven by increasing environmental regulations and the need for energy-efficient production processes [16][19]. - The company holds a competitive edge in technology and R&D, being recognized as a national champion in manufacturing and a key player in the graphite equipment sector [6][20]. Operational Insights - The company has a robust order backlog of 1.011 billion yuan as of March 2025, providing a solid foundation for future revenue [8][21]. - The production and sales of graphite equipment are influenced by customized orders, leading to variability in production capacity and sales volume [21][26]. - The company has implemented a strategy to manage raw material costs effectively, with a focus on in-house production of graphite materials to mitigate price fluctuations [22][23].

Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for its stock performance [4]. Core Insights - The company is positioned to benefit from the accelerated release of chlor-alkali production capacity, with expected revenue growth driven by increased capital expenditures from upstream graphite equipment manufacturers [1][2]. - The domestic replacement cycle for synthetic furnaces is approaching, with significant demand for high by-product steam graphite synthetic furnaces, which are expected to replace traditional models [2]. - The company is actively expanding into overseas markets, with ongoing projects expected to contribute significantly to revenue in the coming years [3]. - The launch of a new graphite materials project enhances the company's integrated layout of "materials, equipment, systems, and services," improving cost efficiency and profitability [4]. Summary by Sections Company Overview - The company is a leading manufacturer of high-efficiency and energy-saving graphite equipment, with a diverse product range covering various applications in the chemical industry [20]. - The company has a stable and concentrated shareholding structure, with the controlling shareholders holding approximately 66% of the shares [26]. Market Dynamics - The chlor-alkali industry is the core downstream application for the company's products, accounting for 65% of its revenue, with a growing market for graphite equipment driven by environmental policies and industry upgrades [48][44]. - The global chlor-alkali production capacity is expected to continue growing, with significant projects planned in Asia, the Middle East, and North America [3]. Financial Projections - Revenue forecasts for the company are projected at 938 million, 1.16 billion, and 1.36 billion yuan for 2025, 2026, and 2027 respectively, with net profits expected to reach 243 million, 308 million, and 332 million yuan in the same years [4][5]. - The company anticipates a recovery in profitability due to the confirmation of overseas orders and the optimization of costs from new projects [29]. Competitive Position - The company maintains a leading market share in the high by-product steam graphite synthetic furnace segment, positioning it well to capitalize on the upcoming replacement cycle [2]. - The company is focused on technological innovation and has a strong R&D investment, which supports its competitive advantage in the industry [38][4].