Group 1 - The company Libet announced the convening of its fifth board meeting on October 30, 2025, to review the proposal for the third quarter report of 2025 [1] - For the year 2024, the company's revenue composition is as follows: engineering services account for 79.03%, industrial module design and manufacturing for 20.73%, and other businesses for 0.24% [1] - As of the report, Libet's market capitalization is 4.9 billion yuan [1]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company reported a revenue of 1.44 billion yuan for the first half of 2025, a year-on-year decrease of 19.8%, with a net profit attributable to shareholders of 122 million yuan, down 6.5% year-on-year [7] - The company is actively exploring new industries and clients, which may form a second growth curve, particularly in marine oil and gas, nuclear power engineering, mining, and water treatment sectors [7] - The company has made significant progress in the nuclear power engineering field, winning a contract worth 267 million yuan for a project with China General Nuclear Power Group [7] Financial Summary - Total revenue forecast for 2023 is 3.24 billion yuan, with a projected decline to 2.79 billion yuan in 2025, followed by a recovery to 3.47 billion yuan in 2027 [1][8] - The net profit attributable to shareholders is expected to be 231.9 million yuan in 2025, with a growth forecast to 320.83 million yuan by 2027 [1][8] - The company’s earnings per share (EPS) is projected to be 0.52 yuan in 2025, increasing to 0.71 yuan by 2027 [1][8] - The company’s comprehensive gross margin improved to 18.1% in the first half of 2025, up 1.7 percentage points year-on-year, driven by a higher proportion of high-margin industrial module revenue [7]

Group 1 - The company, Libet (SH 605167), announced that its 17th meeting of the 5th Board of Directors was held on August 8, 2025, to discuss the cancellation of the supervisory board, changes in business scope, and amendments to relevant proposals [2] - For the fiscal year 2024, the company's revenue composition was as follows: engineering services accounted for 79.03%, industrial module design and manufacturing for 20.73%, and other businesses for 0.24% [2]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Views - The company's overall profitability remains robust, with a slight growth in non-recurring profit in Q1, driven by a decrease in expense ratio. The long-term development prospects are viewed positively [1]. - Revenue from modular design and manufacturing is rapidly increasing, contributing to further improvements in gross margin. The company expects significant growth in both domestic and international sales [2]. - The company has issued convertible bonds to fund a large industrial module project, which is anticipated to enhance manufacturing capabilities and efficiency [4]. Summary by Sections Financial Performance - In Q1, the company achieved revenue of 668 million, a year-on-year increase of 1.45%, with a net profit attributable to the parent company of 36 million, down 8.07%. The non-recurring net profit was 33 million, up 5.71% [1]. - For 2024, projected revenue is 3.493 billion, a year-on-year increase of 7.72%, with a net profit of 240 million, up 26.45% [1][5]. - The company’s gross margin for 2024 is expected to be 16.1%, an increase of 1.55 percentage points year-on-year [2]. Cost and Cash Flow - The expense ratio for 2024 is projected at 7.18%, an increase of 0.89 percentage points year-on-year. The net profit margin is expected to be 6.89% [3]. - The company’s cash flow from operations (CFO) for 2024 is projected at 415 million, an increase of 64 million year-on-year, indicating a strong cash flow situation [3]. Market and Project Developments - The company is focusing on expanding its capabilities in the nuclear power module sector, with a total investment of 1.29 billion for the new manufacturing project [4]. - The company has secured a contract for a module construction project worth 226 million, showcasing its competitive advantage in the modular manufacturing and engineering services sector [4].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6]. Core Views - The company has shown stable profitability, with a slight increase in non-recurring profit in Q1, and a positive outlook for medium to long-term development [1]. - The revenue from modular design and manufacturing is rapidly increasing, contributing to further improvements in gross margin [2]. - The company is utilizing convertible bonds to fund a large industrial module project, which is expected to enhance its manufacturing capabilities and efficiency [4]. Financial Performance Summary - In Q1, the company achieved revenue of 668 million, a year-on-year increase of 1.45%, with a net profit attributable to the parent company of 36 million, down 8.07% year-on-year [1]. - For 2024, the company is projected to achieve revenue of 3.493 billion, a year-on-year increase of 7.72%, and a net profit of 240 million, up 26.45% year-on-year [1][5]. - The gross margin for 2024 is expected to be 16.1%, an increase of 1.55 percentage points year-on-year [2]. Revenue Breakdown - In 2024, the revenue from industrial module design and manufacturing is expected to reach 724 million, a year-on-year increase of 46.36%, while engineering services are projected to generate 2.76 billion, a slight increase of 0.73% [2]. - Domestic sales are projected to be 3.083 billion, up 3.67% year-on-year, while export sales are expected to reach 401 million, a significant increase of 53.6% [2]. Cost and Cash Flow Analysis - The company's expense ratio for 2024 is projected to be 7.18%, an increase of 0.89 percentage points year-on-year, with net profit margin expected to be 6.89% [3]. - The cash flow from operations for 2024 is expected to be 415 million, an increase of 64 million year-on-year, indicating a strong cash flow situation [3]. Future Projections - The company is expected to achieve net profits of 280 million, 320 million, and 370 million for the years 2025 to 2027, respectively, with corresponding P/E ratios of 14, 12, and 11 [4].