Core Viewpoint - Xizi Clean Energy has established itself as a leader in the domestic gas turbine waste heat boiler market, holding over 50% market share, and is expanding its presence in overseas markets due to increasing demand for natural gas installations [1] Group 1: Domestic Market Position - The company signed a technology transfer agreement with the US N/E company in 2002, which is the largest technology transfer entity globally [1] - Gas turbine waste heat boilers are critical equipment for addressing the slow start-up of traditional thermal power and the instability of renewable energy, thanks to their low carbon efficiency and rapid peak response capabilities [1] - The company has a domestic market share exceeding 50%, making it the leader in the gas turbine waste heat boiler industry in China [1] Group 2: International Expansion - The company has gained recognition from overseas clients due to its brand effect, equipment quality, and delivery service, particularly in the context of expanding natural gas installation demands [1] - Notable projects include the first set of 9H gas turbine waste heat boilers in Pakistan, marking significant achievements in international markets [1] - In the last two years, the company has secured multiple overseas project orders, capitalizing on the surge in global electricity demand [1] Group 3: Product Supply and Compatibility - The company has supplied over 450 sets of gas turbine waste heat boilers, covering a full range of products [1] - Its products are compatible with major global gas turbine brands such as GE, Siemens, and Mitsubishi [1]

Core Viewpoint - Xizi Clean Energy (002534.SZ) is a leader in the domestic gas turbine waste heat boiler industry, holding over 50% market share, and is expanding its presence in overseas markets due to increasing demand for natural gas power generation [1] Group 1: Domestic Market - The company signed a technology transfer agreement with the US N/E company in 2002, which is the largest technology transfer entity globally [1] - Gas turbine waste heat boilers are key equipment for addressing the slow start-up of traditional thermal power and the instability of renewable energy, thanks to their low carbon efficiency and rapid peak response capabilities [1] - The company has supplied over 450 sets of gas turbine waste heat boilers, covering a full range of products compatible with major global gas turbine brands such as GE, Siemens, and Mitsubishi [1] Group 2: International Market - The company has gained recognition from overseas clients due to its brand effect, equipment quality, and delivery services, with notable projects including the first set of 9H gas turbine waste heat boilers in Pakistan [1] - In the past two years, the company has secured multiple overseas project orders, capitalizing on the booming demand for electricity in international markets [1] - The company aims to seize opportunities for gas turbine waste heat boiler orders driven by the explosive demand for natural gas units [1]

Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [2][8][10]. Core Views - The company is positioned as a leading player in the waste heat boiler sector, with significant growth potential in solar thermal and energy storage markets, alongside active expansion in nuclear power and solid oxide fuel cells (SOFC) [5][6][10]. - The company has a robust order backlog of 6.119 billion yuan as of June 30, 2025, providing a solid foundation for future revenue [7][10]. - The projected net profits for 2025-2027 are estimated at 443 million, 510 million, and 604 million yuan respectively, with corresponding price-to-earnings ratios of 28, 24, and 20 times [10][11]. Summary by Sections 1. Company Overview - The company has transitioned from a focus on waste heat boilers to a diversified clean energy equipment and solutions provider, with a strong emphasis on energy efficiency and low-carbon development [17][20]. - It is recognized as the largest and most comprehensive manufacturer of waste heat boilers in China, with a market share exceeding 50% [5][20]. 2. Business Segments - The main business segments include waste heat boilers, clean energy equipment, and comprehensive energy solutions, with a notable increase in revenue from clean energy equipment, which reached 1.025 billion yuan in 2024, a 33% year-on-year increase [20][23]. - The solutions segment has shown strong growth, accounting for over 50% of revenue in the first half of 2025, reflecting robust demand in high-energy-consuming industries [20][23]. 3. Market Position and Growth Drivers - The company is actively expanding its overseas market presence, with overseas sales accounting for 13.82% of total revenue in the first half of 2025, a 48.79% increase year-on-year [5][6]. - The company has made significant advancements in molten salt energy storage technology, participating in various demonstration projects and positioning itself for growth in solar thermal power and flexible coal-fired power generation [6][12]. 4. Financial Performance - The company's revenue experienced fluctuations, with a decline to 6.437 billion yuan in 2024, but net profit surged to 440 million yuan, a 705.7% increase from the previous year [38][39]. - The financial outlook remains positive, with expectations of continued profit recovery driven by improved product mix and cost management [39][40].

Investment Rating - The investment rating for the company is not explicitly stated in the report [1] Core Views - The company is expected to experience stable order volumes and optimistic performance growth in 2012, benefiting from the high demand in the waste heat boiler industry [1] - The company has received a significant compensation payment and reported a substantial increase in net profit for 2024, indicating a recovery in profitability [2] - The company is actively expanding into overseas, new energy, and spare parts markets, with a strong order backlog supporting its growth [4] - The company has improved order quality and strengthened cost control measures, leading to an increase in overall gross margin [4] - Continuous investment in R&D is being made to deepen the company's involvement in the "new energy + storage" sector, leveraging its proprietary molten salt storage technology [5] Financial Summary - In 2024, the company achieved total operating revenue of 6.437 billion yuan, a decrease of 20.33% year-on-year, while net profit attributable to the parent company was 440 million yuan, a significant increase of 705.74% [2][6] - The company forecasts operating revenues of 7.171 billion yuan, 7.929 billion yuan, and 8.501 billion yuan for 2025, 2026, and 2027 respectively, with growth rates of 11.4%, 10.6%, and 7.2% [7] - The gross margin for 2024 was reported at 18.47%, an increase of 2.01 percentage points year-on-year [4] - The company’s earnings per share (EPS) for 2024 is projected to be 0.59 yuan, with a price-to-earnings (P/E) ratio of 18.99 [6][7]