Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% [4]. Core Insights - In 2024, the company achieved total revenue of 3.41 billion yuan, a year-on-year increase of 21.46%, and a total profit of 266 million yuan, up 37.7%. The net profit attributable to shareholders was 189 million yuan, reflecting a modest growth of 1.09%. The significant growth in revenue and total profit is primarily attributed to the consolidation of the gas operation business in Q2 2024, while traditional coal chemical equipment and engineering businesses performed steadily. The gross margin for core equipment is expected to remain stable [1][2]. - The company is strategically positioning itself in the green hydrogen and green alcohol industry chain, focusing on core equipment such as electrolyzers, gasifiers, and purification devices. This transition from coal chemical to green chemical is anticipated to create a second growth curve for the company's profits as the penetration rate of green hydrogen and hydrogen-based products increases [1][3][12]. Summary by Sections Coal Chemical Main Business - In 2024, revenue from coal efficient utilization reached 1.82 billion yuan with a gross margin of 24.7%. The expected revenue from EPC/design/consulting is estimated at 500-600 million yuan with a gross margin of 5-8%. Revenue from gasifiers is projected to be between 1.3 billion and 1.4 billion yuan, maintaining a gross margin of approximately 30% [3]. - High-end equipment manufacturing generated 300 million yuan in revenue with a gross margin of 28.7%, primarily from valve manufacturing, which was separately reported from equipment sales in 2023 [3]. Industrial Gas Operations - In April 2024, the company increased its stake in the previously affiliated company, Aerospace Hydrogen Energy, to 34.35%, becoming its controlling shareholder and consolidating it into the company's financial statements. This acquisition has made the industrial gas operation business a significant part of the company's operations, with ongoing projects such as the Cangzhou gas phase II project exceeding 80% completion and the successful commissioning of the Xinxiang gas project [3][11]. Hydrogen Energy Industry Chain Core Equipment - The company has made significant progress in the hydrogen energy industry chain, completing tests on a 2000-type alkaline water electrolyzer prototype, achieving leading domestic performance. Development of PEM electrolyzers in various capacities is ongoing, and the electrolyzer manufacturing process has been certified under three systems. The company has also received energy efficiency certification from the China Hydrogen Energy Alliance [12]. - The first hydrogen deep purification system and trace impurity removal system have completed trial operations, which can be used for purifying hydrogen from chemical by-products. The company possesses biomass gasification technology and equipment reserves, which are expected to contribute to profit growth as the industry transitions from coal chemical to green chemical [12][13]. Financial Projections - The company forecasts revenues of 5.42 billion yuan, 6.24 billion yuan, and 6.87 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 236 million yuan, 310 million yuan, and 345 million yuan. The projected P/E ratios for these years are 38, 29, and 26 times [14][13].