Core Viewpoint - State-owned enterprises (SOEs) are accelerating investments in strategic emerging industries, focusing on key areas and enhancing their competitive edge through precise layouts and differentiated development [1][2]. Group 1: Investment Trends - SOEs have increased their investment in strategic emerging industries, with a reported year-on-year growth of 6.6% in the first quarter of this year [2]. - By 2025, the revenue from strategic emerging industries is expected to account for 35% of central enterprises' total revenue [2]. - Major projects in renewable energy, such as the 100 MW wind power project and the 400 MW offshore photovoltaic project, have been successfully connected to the grid, indicating significant progress in technology application and scale construction [2]. Group 2: Capital Empowerment - State-owned capital investment and operation companies are building an ecosystem for strategic emerging industries, with China Chengtong managing 71% of its total investment in these sectors [3]. - The "Chengtong Science and Technology Investment Fund" has been established with an initial scale of 10 billion yuan, focusing on new materials [3]. - China Guoxin's investment in strategic emerging industries has reached nearly 80%, covering nine major fields, and it has developed specific guidelines for investment strategies [3]. Group 3: Strategic Development - The State-owned Assets Supervision and Administration Commission (SASAC) emphasizes orderly development in strategic emerging industries, transitioning from expansion to internal strengthening [5]. - The development of strategic emerging industries is moving from the initial stage to a more advanced phase, with a focus on recognizing, investing, and practicing [5]. - Recommendations include precise boundary delineation for SOEs in emerging industries to reduce disorderly investments and resource waste [6].

Investment Rating - The report assigns a "Buy" investment rating for the company, marking the first coverage of the stock [8]. Core Views - The company achieved a total revenue of 52.517 billion yuan in 2024, representing a year-on-year increase of 6.51%, with a net profit attributable to shareholders of 3.656 billion yuan, up 18.66% year-on-year [4][5]. - The domestic market remains the primary revenue source, contributing 98.78% of total revenue, with an improvement in domestic business gross margin by 1.20 percentage points year-on-year [5]. - The company is diversifying its operations into areas such as LNG refueling and renewable energy, including significant projects in offshore solar energy [7]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 18.843 billion yuan, a year-on-year increase of 6.37% and a quarter-on-quarter increase of 56.48% [4]. - The overall gross margin for 2024 was 14.62%, an increase of 1.15 percentage points year-on-year, attributed to cost control and efficiency improvements [5]. Cost Structure and R&D - The company optimized its expense structure, with sales expenses slightly increasing due to business development, while financial expenses decreased due to higher interest income from bank deposits [6]. - R&D expenses decreased as the company focused on major projects and improved the quality and efficiency of its research activities [6]. Technological Development and Diversification - The company has established a technical system for marginal oilfield development and is expanding into LNG refueling and green energy sectors [7]. - Significant projects include the construction of the first gigawatt-level offshore solar project and the launch of a new LNG refueling vessel [7]. Profit Forecast - The company is expected to achieve net profits of 4.079 billion yuan, 4.656 billion yuan, and 5.402 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 9.8, 8.6, and 7.4 [8][10].