Core Viewpoint - Jiangsu Shentong (002438) announced the establishment of its subsidiary, Shentong Semiconductor Technology (Nantong) Co., Ltd., focusing on long-term R&D in the semiconductor field, particularly in specialized valves for semiconductor applications [1] Group 1 - The subsidiary is dedicated to the independent R&D and support of vacuum control butterfly valves and ultra-pure process gas valves [1] - Key products have entered the user prototype verification stage, with some achieving small-scale introduction into customer production lines, indicating readiness for market promotion [1] - The company is building a multi-disciplinary R&D system that integrates mechanical, electronic, software, and measurement control to meet the high-end demands of industries such as integrated circuits, photovoltaics, and display panels [1]

Core Viewpoint - Jiangsu Shentong has established a subsidiary focused on the development of specialized valves for semiconductor equipment, indicating a strategic move into the semiconductor and photovoltaic sectors [2] Group 1: Company Developments - The company set up Shentong Semiconductor Technology (Nantong) Co., Ltd. in December 2022 to focus on the independent research and development of vacuum control butterfly valves and ultra-pure process gas valves [2] - Some key products have entered the prototype verification stage with customers, and some have achieved small-scale introduction into customer production lines, indicating readiness for market promotion [2] Group 2: Industry Focus - The company is building a research and development system that integrates multiple disciplines, including mechanics, electronics, software, and measurement and control, to provide customized services [2] - The focus is on meeting the high-end demands of industries such as integrated circuits, photovoltaics, and display panels [2]

Investment Rating - The report maintains a "Buy" rating for the company [6][8]. Core Views - The company achieved a revenue of 2.143 billion yuan in 2024, a year-on-year increase of 0.48%, with net profits of 295 million yuan, up 9.68% year-on-year [2]. - The nuclear power sector is experiencing high growth, with new nuclear unit approvals becoming normalized, leading to a 37.2% increase in orders to 1.102 billion yuan in 2024 [5]. - The energy equipment sector faced pressure, while the energy-saving and environmental protection business saw significant growth, primarily due to new projects coming online [3]. Financial Performance - The company's gross margin and net profit margin for 2024 were 33.53% and 13.76%, respectively, reflecting improvements of 1.84 and 1.15 percentage points year-on-year [4]. - The company expects revenues of 2.417 billion yuan, 2.678 billion yuan, and 2.980 billion yuan for 2025, 2026, and 2027, respectively, with net profits projected at 347 million yuan, 408 million yuan, and 469 million yuan [6][7]. Business Segments - In 2024, the company generated revenue of 743 million yuan from nuclear power, 425 million yuan from energy-saving and environmental protection, 412 million yuan from metallurgy, and 403 million yuan from energy equipment, with respective year-on-year changes of -7.06%, +63.06%, -13.38%, and -38.18% [3]. - The company is advancing in the hydrogen energy sector and has developed high-pressure valves for various applications, indicating new growth opportunities [5]. Future Outlook - The company is expected to continue its growth trajectory, supported by stable traditional business and emerging sectors, with earnings per share projected to reach 0.68 yuan, 0.80 yuan, and 0.92 yuan from 2025 to 2027 [6].