Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [7][58]. Core Insights - The company is a state-controlled enterprise engaged in electricity and water supply, with a comprehensive service network. It has a 100% market share in electricity supply and nearly 90% in water supply within its jurisdiction as of 2025H1 [4][17]. - The company has shown steady long-term growth, with a 10-year CAGR of 8.6% in revenue and 7.9% in net profit from 2014 to 2024 [4][22]. - The ongoing energy reform and integration of generation, transmission, and sales are expected to enhance the company's comprehensive energy services [5][6]. Summary by Sections Company Overview - The latest closing price is 10.05 yuan, with a total market capitalization of 55 billion yuan and a PE ratio of 26.30 [3]. - The company has a low debt ratio of 27.1%, indicating a stable financial position [3][33]. Business Performance - In 2025H1, the company reported revenues of 1.52 billion yuan and a net profit of 70 million yuan, reflecting a year-on-year growth of 13.7% in revenue but a decline of 13.1% in net profit due to reduced water inflow [22]. - The company’s electricity and water sales have shown robust growth, with a CAGR of 12.9% and 5.5% respectively from 2015 to 2024 [50]. Financial Forecast - Projected revenues for 2025-2027 are 3.13 billion, 3.40 billion, and 3.65 billion yuan, with net profits of 210 million, 220 million, and 220 million yuan respectively. The net profit CAGR for this period is estimated at 4.6% [7][57]. - The diluted EPS for the same period is forecasted to be 0.38, 0.39, and 0.41 yuan [7][57]. Valuation - The PE multiples based on the current stock price for 2025-2027 are projected to be 27, 25, and 24 times respectively [7][58]. - The report references comparable companies for valuation, considering the company's active expansion into comprehensive energy services [58].

Core Viewpoint - The article highlights the significant advancements in industrial internet applications in Shenyang, Liaoning, showcasing how these developments are enhancing manufacturing efficiency and facilitating the digital transformation of traditional industries. Group 1: Industrial Internet Infrastructure - Shenyang has established 32 provincial-level industrial internet platforms, enhancing the comprehensive utilization rate of machine tools by nearly 40% through industrial internet identification [1][3] - The city has built 14 industrial internet identification resolution secondary nodes, with a total of 8.5 billion registered identifiers and 3.2 billion resolution instances [2] - The "Spark Chain Network" super node in Shenyang has connected 710 enterprises and registered 131 million identifiers, supporting over 13 million product data for industrial digital transformation [2] Group 2: Digital Transformation Projects - Shenyang is implementing 425 digital application scenario projects and has established a project library with 476 smart upgrade projects [4] - The city has approved 68 smart factories and 103 digital workshops, indicating a robust framework for digital transformation in manufacturing [4] Group 3: Smart Manufacturing and Efficiency Gains - The ShenGu Group's industrial internet platform has improved labor productivity by 12.9% and increased the efficiency of key component processing by 28.2% [3] - SANY Heavy Equipment's factory has achieved a 105% increase in production capacity and reduced energy consumption per sales unit by 42% through smart management [4] Group 4: Digital Transformation Service Providers - Shenyang has selected 125 digital transformation service providers to support local enterprises in their digitalization efforts [5] - The city has initiated a comprehensive action plan for the digital transformation of small and medium-sized enterprises, conducting assessments for 1,504 companies [5]