Investment Rating - The investment rating for the company is "Buy-A" with a target price of 18.03 yuan for the next 12 months [6][8]. Core Insights - The company is expected to achieve a significant increase in its net profit excluding non-recurring items, with projections of 2.20 to 2.80 billion yuan for 2025, representing a growth of 53.30% to 95.11% year-on-year [1]. - The core business remains strong, with an increase in gross profit margin and improved operational efficiency contributing to the expected growth in net profit [2][4]. - The company is well-positioned to capitalize on opportunities in the North American gas turbine market and is accelerating its global expansion efforts [3]. - The dual drivers of new energy storage and nuclear power are expected to open up growth avenues for the company, supported by favorable government policies [4][7]. Summary by Sections Financial Performance - The company anticipates a net profit of 4.00 to 4.39 billion yuan for 2025, a slight decrease from 4.40 billion yuan in the previous year, primarily due to reduced non-recurring gains [1]. - The expected revenue for 2025 is 6.73 billion yuan, with projected growth rates of 4.6%, 14.8%, and 13.5% for the years 2025, 2026, and 2027 respectively [8][9]. Business Operations - The company holds over 50% market share in the domestic heat recovery boiler sector, indicating a solid leadership position [2]. - The gross profit margin for heat recovery boiler products has improved to 29.68% as of the first half of 2025, supported by strong order quality management [2]. Market Opportunities - The company has established a strong technical partnership with N/E Company in the U.S. since 2002, positioning it to benefit from the growing demand for gas turbines and associated heat recovery boilers in North America [3]. - The new energy storage business is expanding into various applications, including concentrated solar power and flexible transformation of thermal power, with significant market potential [4]. Strategic Developments - The company is enhancing its nuclear power business through the establishment of a joint venture and aims to participate in controlled nuclear fusion projects, which could become new growth drivers [7].

Investment Rating - The investment rating for the company is "Buy-A" with a target price of 16.64 CNY for the next 12 months [6][11][18]. Core Views - The company is a leader in waste heat boilers and is positioned for long-term growth in both traditional and renewable energy sectors, including nuclear power and solid oxide fuel cells (SOFC) [2][3]. - The company has a strong order backlog, with total orders amounting to 61.19 billion CNY as of June 30, 2025, which supports future revenue growth [4][13]. - The company is expanding its international market presence, achieving 3.86 billion CNY in exports in the first half of 2025, a year-on-year increase of 48.79% [10]. Summary by Sections Financial Performance - In the first half of 2025, the company reported total revenue of 2.794 billion CNY, a decrease of 6.49% year-on-year, and a net profit of 148 million CNY, down 56.81% year-on-year [1]. - The company achieved a non-recurring net profit of 129 million CNY, an increase of 37.58% year-on-year [1]. Business Segments - The company operates in two main segments: traditional energy (waste heat boilers) and renewable energy (clean energy equipment and solutions) [2]. - Revenue from waste heat boilers was 530 million CNY, a decrease of 52.66%, while clean energy equipment revenue increased by 38.65% to 475 million CNY [4]. Order Backlog and Growth - The company secured new orders worth 2.784 billion CNY in the first half of 2025, with significant contributions from solutions and services [4]. - The company is transitioning from a single product manufacturer to a comprehensive energy solutions provider, enhancing its market position [2][13]. Future Projections - Revenue projections for 2025-2027 are 6.731 billion CNY, 7.726 billion CNY, and 8.766 billion CNY, with corresponding net profits of 453 million CNY, 510 million CNY, and 578 million CNY [11][12][18]. - The company anticipates a growth rate of 4.6% in 2025, followed by 14.8% in 2026 and 13.5% in 2027 [11][12]. Market Position and Competitiveness - The company is recognized as the largest and most comprehensive waste heat boiler manufacturer in China, with a leading market share [2][13]. - The company has established strategic partnerships with major players in the nuclear sector, enhancing its competitive edge [3].