Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company's performance in the first half of 2025 showed a decline in total revenue and net profit, primarily due to a decrease in engineering business revenue. However, the equipment manufacturing sector is recovering, with significant growth in energy-efficient power generation equipment [1][2][4]. - The company has successfully delivered its first batch of alkaline electrolyzers, which are expected to fill a gap in the domestic market for high-pressure electrolyzers. This development, along with advancements in flexible coal-fired power generation, is anticipated to drive future growth [3][4]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved total revenue of 4.417 billion yuan, a year-on-year decrease of 23.30%. The net profit attributable to shareholders was 285 million yuan, down 28.16% year-on-year [1]. - The equipment manufacturing segment reported revenue of 929 million yuan, an increase of 26.51% year-on-year, driven by overseas market development and opportunities in energy-saving and low-carbon transformation [2]. Equipment Manufacturing - The revenue from energy-efficient power generation equipment surged to 620 million yuan, reflecting a year-on-year increase of 223%. In contrast, revenue from environmental protection equipment fell to 310 million yuan, a decrease of 42% [2]. - The company has a total backlog of boiler equipment orders amounting to 1.66 billion yuan, with stable order volumes across various segments [2]. Engineering Business - The municipal engineering segment experienced a significant revenue decline of 64% year-on-year, totaling 440 million yuan in the first half of 2025. This decline is attributed to reduced government investment and a strategic shift towards higher-margin projects [2]. - The thermal power operation segment reported revenue of 2.06 billion yuan, down 25% year-on-year, but with an improved gross margin of 22.78%, up 5.27 percentage points year-on-year [2]. Future Outlook - The company is expected to see a rebound in net profit, with projections of 777 million yuan, 900 million yuan, and 1.013 billion yuan for 2025, 2026, and 2027 respectively. Corresponding EPS estimates are 0.81 yuan, 0.94 yuan, and 1.06 yuan per share [4][5]. - The report highlights the anticipated dual momentum from hydrogen production and flexible coal-fired power generation, which are expected to support rapid development [4].