Core Viewpoint - The company reported a decline in total revenue for the first half of 2025, but a significant increase in net profit, indicating a mixed performance influenced by delivery schedules and an increase in overseas orders [1][2]. Financial Performance - Total revenue for the first half of 2025 was 1.3 billion, a year-on-year decrease of 4.8%, while net profit attributable to shareholders was 130 million, a year-on-year increase of 9.1% [1]. - In Q2 2025, total revenue was 580 million, a year-on-year increase of 5.9%, but net profit decreased by 35.3% to 30 million [1][2]. - The gross profit margin and net profit margin for the first half of 2025 were 22.3% and 10.4%, respectively, both showing year-on-year increases [2]. Order and Sales Performance - As of June 30, 2025, the company had a backlog of orders totaling 2.442 billion, with nearly 40% of these orders being overseas, marking a historical high for overseas orders [3]. - The equipment sales business generated revenue of 580 million in the first half of 2025, reflecting a year-on-year growth of 7.5% [3]. Strategic Positioning - The company is actively expanding into high-barrier traditional industries and emerging fields such as electronic gases and nuclear fusion, with its core products achieving world-class standards [3]. - The company has established itself as a leading domestic manufacturer of cryogenic equipment, benefiting from a dual-driven model of "equipment manufacturing" and "investment operation" [4]. Future Outlook - The company anticipates significant revenue growth in the coming years, with projected revenues of 3.23 billion, 3.86 billion, and 4.72 billion for 2025, 2026, and 2027, respectively, reflecting year-on-year growth rates of 18.8%, 19.7%, and 22.2% [4].

Investment Rating - The report assigns a "Buy" rating for the company, marking it as the first rating given [2]. Core Insights - The company's performance in the first half of 2025 showed a revenue of 1.302 billion yuan, a year-on-year decrease of 4.79%, while the net profit attributable to the parent company was 135 million yuan, an increase of 9.14% [2][10]. - The decline in revenue was primarily due to a drop in the gas segment's income and an increase in sales expenses [2][10]. - The gross margin for equipment sales significantly improved to 42.28%, reflecting strong cost optimization capabilities and technological advantages in core areas such as plate-fin heat exchangers and natural gas liquefaction [10]. Financial Data and Profit Forecast - Total revenue forecast for 2025 is 3.368 billion yuan, with a projected year-on-year growth rate of 24% [4]. - The net profit forecast for 2025 is 403 million yuan, with a projected growth rate of 38% for 2026 and 47.4% for 2027 [4]. - The earnings per share (EPS) for 2025 is estimated at 1.05 yuan, with a projected PE ratio of 17 for 2025 [4][10]. Market Data - As of August 25, 2025, the closing price was 17.56 yuan, with a market capitalization of 6.476 billion yuan [5]. - The company has a price-to-book ratio of 2.2 and a dividend yield of 1.14% [5]. Business Development and Market Position - The company is actively expanding into the electronic gas industry, supplying core equipment to major global corporations such as Intel and Samsung [10]. - The company has successfully exported its products to 54 countries and regions, establishing a strong presence in high-barrier overseas markets [10]. - The company maintains good relationships with leading domestic and international enterprises, enhancing its brand reputation and industry barriers [10]. Profitability and Investment Outlook - The deep-cooling equipment business is expected to provide stable profits and cash flow, with the electronic specialty gas business driving growth [10]. - The report adjusts the profit forecast for 2025-2026 downwards due to impairment provisions, but maintains a "Buy" rating based on a comparative analysis with similar companies in the industry [10].

Group 1 - The company is a leading enterprise in the domestic cryogenic technology field, achieving a dual-driven development model of "equipment manufacturing + gas operation" [1] - The core products in the equipment manufacturing segment include natural gas liquefaction devices and large air separation units, with the plate-fin heat exchangers being a domestic leader and exported to 53 countries and regions [1] - The company has diversified its operations by investing in the sales of natural gas, industrial gases, and rare gases, enhancing its overall competitiveness [1] Group 2 - Rising oil prices have led to increased upstream investment, with the economic viability of energy and chemical industries improving, particularly in coal chemical and synthetic gas sectors [2] - Fixed asset investment in the domestic petroleum, coal, and other fuel processing industries increased by 18.8% year-on-year from January to May 2025 [2] - The company signed new orders worth approximately 1.8 billion yuan in 2024, representing a year-on-year growth of over 25%, with overseas orders also showing significant growth [2] Group 3 - The gas operation segment is expanding, with the company investing in industrial and rare gases, which are expected to become new revenue growth sources as projects reach production capacity [3] - A joint venture with Korea's Posco Holdings marks the company's first step in both equipment and operation overseas, providing valuable experience for future expansions [3] - The profit margin for industrial gas operations is relatively high, and as the business expands, the company's profitability is expected to improve [3] Group 4 - The company is projected to achieve revenues of 3.23 billion, 3.86 billion, and 4.72 billion yuan from 2025 to 2027, with year-on-year growth rates of 18.8%, 19.7%, and 22.2% respectively [4] - Net profit attributable to the parent company is expected to reach 400 million, 510 million, and 630 million yuan during the same period, with significant growth in 2025 [4] - The company is assigned a target price of 20.9 yuan based on a 20x PE ratio for 2025, indicating a potential upside of approximately 39% from the current stock price [4]

Investment Rating - The report gives a "Strong Buy" rating for the company, with a target price of 20.9 CNY, indicating a potential upside of approximately 39% from the current price of 15.00 CNY [2][9]. Core Insights - The company is a leading player in the deep cooling technology sector, leveraging a dual-engine model of "equipment manufacturing + gas operation" to drive growth. The company has successfully diversified its operations and is expanding into international markets [6][13]. - The demand for deep cooling technology is expected to grow due to rising oil prices and the economic viability of technological innovations in the energy and chemical sectors. The company has seen a significant increase in new orders, particularly from overseas markets [7][8]. - The gas operation segment is also expanding, with the company investing in industrial and rare gases, which are anticipated to become new revenue sources as projects reach production capacity [6][8]. Financial Summary - The company forecasts total revenue of 27.17 billion CNY in 2024, with a year-on-year decline of 10.9%. However, revenue is expected to rebound with growth rates of 18.8%, 19.7%, and 22.2% in the following years [2][9]. - The net profit attributable to shareholders is projected to be -78 million CNY in 2024, but is expected to recover significantly to 403 million CNY in 2025, reflecting a year-on-year growth of 616.3% [2][9]. - Earnings per share (EPS) are expected to improve from -0.20 CNY in 2024 to 1.04 CNY in 2025, with a projected price-to-earnings (P/E) ratio of 20 times for 2025 [2][9]. Business Model and Market Position - The company has established a strong market position in the deep cooling technology sector, with its core products including natural gas liquefaction devices and large air separation units. The company has also successfully exported its products to 53 countries [6][13]. - The gas operation segment has been enhanced through strategic investments, including a joint venture with Posco Holdings to operate projects abroad, marking a significant step in the company's international expansion [6][8]. - The company has a robust order backlog, with new orders in 2024 expected to reach approximately 1.8 billion CNY, a year-on-year increase of over 25% [6][8]. Industry Outlook - The deep cooling technology industry is poised for growth, driven by increasing domestic investments in energy security and the economic viability of coal chemical and natural gas sectors. The company is well-positioned to benefit from these trends [7][8]. - The report highlights the importance of deep cooling technology in enhancing energy efficiency and meeting environmental standards in the coal chemical industry, which is expected to see sustained demand [6][45].