Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company achieved significant revenue growth of 10.31% year-on-year, reaching 1.061 billion yuan in H1 2025, with a net profit increase of 15.55% to 113 million yuan [1] - The carbon fiber equipment business is a key growth driver, with revenue from complete carbon fiber production lines increasing by 75.03% year-on-year to 569 million yuan in H1 2025 [2][3] - The company is focusing on diversifying its product offerings, which helps mitigate operational risks and enhances market opportunities [3] Financial Performance - In H1 2025, the company's gross margin improved to 28.60%, up by 2.80 percentage points year-on-year, while the net profit margin increased to 10.69%, up by 0.48 percentage points [1] - The company plans to achieve revenues of 20.52 billion yuan, 24.55 billion yuan, and 29.79 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 2.25 billion yuan, 2.78 billion yuan, and 3.37 billion yuan [4][6] Business Strategy - The company is investing in R&D, with expenses reaching 64 million yuan in H1 2025, a 23% increase year-on-year, representing a 6% R&D expense ratio [2] - The company is positioned as a leading manufacturer in the domestic carbon fiber equipment sector, benefiting from high demand in aerospace, wind power, and other advanced manufacturing fields [2][3]

Company Overview - Zhejiang Jinggong Integrated Technology Co., Ltd. has over 50 years of equipment manufacturing history, focusing on becoming a leader in high-end specialized equipment technology and promoting industrial upgrades [2] - The company’s core business includes carbon fiber full-chain high-end equipment and advanced composite new materials, following a development model of "equipment leading, material collaboration, application support" [2] Carbon Fiber Equipment Development - The carbon fiber equipment manufacturing business began in 2013, with the first domestic thousand-ton-level production line developed in 2015 [2] - The first successful trial run of a domestically produced thousand-ton-level carbon fiber production line occurred in 2020, establishing a comprehensive industrial layout [2] Advantages of Carbon Fiber - Carbon fiber is a high-performance composite material that is lighter and stronger than traditional materials (e.g., steel, aluminum) [2] - It has excellent corrosion resistance, high-temperature resistance, electrical conductivity, thermal conductivity, fatigue resistance, and tensile strength, making it suitable for various applications including aerospace, automotive, and wind energy [2] Future Industry Outlook - The carbon fiber industry is a strategic national industry with significant downstream demand, particularly for T700 and above grade carbon fibers [4] - Domestic production of small-bundle carbon fibers is insufficient to meet market demand, leading to high prices [4] - The company aims to accelerate its full industry chain layout and focus on technological innovation to reduce operational costs and carbon fiber prices [4] Recent Contracts and Projects - The company has secured contracts for various carbon fiber projects, including a 4,000-ton thermal field material project and an 8,000-ton large bundle carbon fiber project [6] - Contracts have been signed for core equipment for carbon fiber production lines, with ongoing project execution [6] Acquisition and Production Line Progress - The acquisition of Zhejiang Jinggong Carbon Material Technology Co., Ltd. aims to utilize its site advantages for carbon fiber industry development [7] - The original silk production line project is progressing as planned, with a trial production expected in Q3 2025 [7] Carbon Fiber Equipment Business Areas - The company provides turnkey projects, upgrade services, and customized products for carbon fiber production lines [9] - The production lines can be tailored to meet various specifications and performance requirements [10] Investment and Equipment Proportions - The investment for achieving a production capacity of 10,000 tons of carbon fiber is approximately 1.3 to 1.5 billion CNY, with 80% allocated to original silk and carbon fiber equipment [11] Polyester Recycling Production Line - A project for producing 50,000 tons of recycled PET is underway, with core equipment installation completed and entering the commissioning phase [12] International Business Growth - The company is expanding its overseas business, focusing on carbon fiber equipment and smart construction machinery, with a strategy to enhance international market presence [13] Talent Development - The company is implementing a talent development strategy, planning to recruit 168 new talents, including 10 PhDs and 47 Masters, to support its growth [14]