Core Viewpoint - The company reported strong financial performance in the first half of 2025, with significant revenue and profit growth driven by accelerated order deliveries and increased EPC construction business revenue [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 1.843 billion yuan, a year-on-year increase of 22.00%, and a net profit attributable to shareholders of 126 million yuan, up 106.69% year-on-year [1]. - The gross margin for H1 2025 was 19.67%, an increase of 2.80 percentage points year-on-year, while the net profit margin was 6.85%, up 2.59 percentage points year-on-year [2]. - The company’s Q2 2025 revenue reached 1.097 billion yuan, reflecting a year-on-year increase of 30.95% and a quarter-on-quarter increase of 46.88% [1]. Operational Efficiency - The company delivered 14 vessels in total for design and construction, 39 vessels for design, and 9 vessels for supervision in H1 2025, showing an increase in delivery speed compared to H1 2024 [3]. - The EPC business revenue reached 1.697 billion yuan, a year-on-year increase of 32.33%, driven by improved production efficiency through enhanced coordination and new processes [3]. Order Backlog and Market Position - As of the end of H1 2025, the company had a substantial order backlog, including 1.31 billion yuan for marine engineering design, 470 million yuan for supervision, and 14.143 billion yuan for construction, indicating a 1.3% increase compared to the end of 2024 [3][4]. - The company is positioned as a leader in the ship design and research industry, benefiting from government support for deep-sea technology and the growing demand for green ships due to international maritime organization policies [3][4]. Profit Forecast and Valuation - The company’s net profit forecasts for 2025-2027 have been raised to 218 million yuan, 288 million yuan, and 334 million yuan, reflecting increases of 15%, 16%, and 17% respectively [5]. - The target price has been adjusted to 8.21 yuan, based on a projected PE ratio of 65 times for 2025, indicating confidence in the company’s ability to leverage its order backlog and operational efficiencies [5].

Summary of Key Points Core Viewpoint - China Haicheng (002116) reported a total of new signed engineering contracting orders amounting to 2.454 billion yuan in the second quarter of 2025, indicating a strong performance in securing new projects [1] Group 1: New Signed Orders - The company secured new engineering contracting orders of 1.919 billion yuan, design business orders of 315 million yuan, supervision business orders of 119 million yuan, and consulting business orders of 102 million yuan, totaling 2.454 billion yuan [1] - By industry classification, the orders included 1.255 billion yuan in pulp and paper, 444 million yuan in food fermentation, 39.78 million yuan in daily chemicals, 224 million yuan in civil and public construction, 38.58 million yuan in municipal projects, 18.1 million yuan in environmental protection, 32.36 million yuan in new energy materials, 13 million yuan in pharmaceuticals, and 110 million yuan in other orders [1] Group 2: Domestic and International Orders - The company received 1.678 billion yuan in new signed domestic orders and 776 million yuan in new signed overseas orders [1] Group 3: Ongoing and Upcoming Projects - As of the end of the second quarter of 2025, the company had a total of 143 signed but uncompleted engineering contracting projects, amounting to approximately 8.083 billion yuan [1] - In the second quarter of 2025, the company had 3 projects that were won but not yet signed, with a total value of 486 million yuan [1]