Core Viewpoint - The company reported strong financial performance for the first half of 2025, with significant year-on-year growth in revenue and net profit, driven by high demand in downstream sectors such as LNG, marine engineering, and shipbuilding [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 3.404 billion yuan, a year-on-year increase of 19.96%, and a net profit attributable to shareholders of 637 million yuan, up 30.44% year-on-year [1]. - In Q2 2025, the company recorded revenue of 1.848 billion yuan, representing a year-on-year growth of 25.03% and a quarter-on-quarter increase of 18.80%. The net profit for Q2 was 374 million yuan, up 28.37% year-on-year and 42.34% quarter-on-quarter [1]. Growth Drivers - The company's net profit margin improved to 18.9%, an increase of 1.5 percentage points year-on-year, primarily due to: 1. Sustained high demand in LNG, marine engineering, and shipbuilding sectors, leading to higher revenue recognition from high-margin orders. 2. Rapid growth in new business areas such as nuclear power and water treatment. 3. Cost improvements from equipment upgrades and declining raw material prices [2]. Order Backlog and R&D - The company reported contract liabilities of 505 million yuan, a year-on-year increase of 122.5%, indicating a strong order backlog and potential for continued high growth in future performance [2]. - R&D expenses for H1 2025 were 92.68 million yuan, a year-on-year increase of 19.65%, focusing on technological upgrades and breakthroughs in nuclear-grade equipment and high-pressure valves [2]. Market Outlook - The company is well-positioned in the industrial valve sector, with a marketing network covering over 90 countries and strong international competitiveness. It has successfully secured large projects both domestically and internationally [3]. - The company is expected to benefit from the ongoing global energy transition, particularly in LNG, marine engineering, and nuclear power sectors, with a robust order pipeline supporting medium-term growth [3]. - Long-term growth is supported by the company's comprehensive valve solutions, global channel advantages, and continuous breakthroughs in emerging fields, which are likely to enhance market share and profitability [3]. Investment Projections - Revenue projections for 2025-2027 are 7.460 billion yuan, 8.963 billion yuan, and 10.772 billion yuan, respectively, with net profits of 1.486 billion yuan, 1.833 billion yuan, and 2.255 billion yuan [4]. - The current stock price corresponds to a price-to-earnings ratio of 17.8X, 14.4X, and 11.7X for the years 2025, 2026, and 2027, respectively, maintaining a "buy" rating [4].