Company Overview - The report rates the company as "Buy" for the first time, indicating a positive outlook for investment [4] - The company, Kaishan Holdings, is a leader in the compressor and geothermal power sectors, focusing on high-end equipment manufacturing and renewable energy development [1][11] - The company has a comprehensive compressor product line and is a domestic leader in the air compressor industry, while also extending its geothermal power business through innovative technologies [1][20] Financial Performance - In 2024, the company achieved total revenue of 4.235 billion yuan, a year-on-year increase of 1.64%, with a net profit of 320 million yuan, down 26.05% year-on-year [1][5] - The net profit margin for 2024 is approximately 7.66% [1] - The company expects to see significant growth in net profit from 2025 to 2027, with projections of 4.09 billion yuan, 6.38 billion yuan, and 9.50 billion yuan respectively, representing year-on-year growth rates of 27.8%, 55.8%, and 48.9% [3][5] Industry Overview - The geothermal power industry is projected to see a decrease in the levelized cost of electricity (LCOE) to 0.06 USD/kWh by 2024, which is expected to open up further growth opportunities in the global geothermal power market [2][41] - The global installed capacity of geothermal power plants is expected to grow from 15.4 GW in 2019 to 16.87 GW in 2024, with a compound annual growth rate (CAGR) of 1.84% [2][41] - Indonesia is highlighted as having the largest geothermal potential globally, with only about 2% of its potential geothermal energy currently being utilized [2][42] Business Segments - The company's compressor segment generated revenue of 2.902 billion yuan in 2024, accounting for 68.53% of total revenue, with a stable gross margin of around 30% [23][29] - The geothermal power segment reported revenue of 798 million yuan in 2024, a year-on-year increase of 21.23%, contributing 18.84% to total revenue, with a gross margin exceeding 49% [23][29] - Other business segments, including compressor accessories and vacuum systems, generated revenue of 535 million yuan, accounting for 12.63% of total revenue [23][29] Global Expansion - The company is actively pursuing a global strategy, with overseas revenue accounting for approximately 44.95% of total revenue in 2024, driven by its compressor and geothermal power businesses [25][31] - The company has established new sales offices in cities like Seoul, Bangkok, and Mexico City, and is constructing a third overseas factory in Turkey [25][31] Future Outlook - The company has seven operational geothermal power projects with a total capacity of 215.5 MW and eight projects under construction with a capacity of approximately 191 MW, which are expected to contribute to revenue growth [3][29] - The report emphasizes the potential for continued growth in both the compressor and geothermal segments, supported by technological advancements and increasing global demand for renewable energy solutions [3][41]