Core Conclusion - The company reported a revenue of 37.624 billion yuan for H1 2025, a year-on-year increase of 14.26%, and a net profit attributable to shareholders of 1.91 billion yuan, up 12.91% year-on-year [1] - The gross profit margin was 15.46%, an increase of 0.1 percentage points year-on-year, while the net profit margin was 5.48%, a slight decrease of 0.01 percentage points year-on-year [1] - R&D expenses for H1 2025 were 1.57 billion yuan, reflecting a 16.45% year-on-year increase due to ongoing investments in technology [1] - Financial expenses decreased by 100.84% year-on-year, and asset impairment losses totaled 667 million yuan, including 210 million yuan in credit impairment [1] Industry Position - The company maintains a leading position in traditional energy equipment, with the highest market shares in nuclear and gas power [2] - Achievements include the first overseas order for a 50 MW heavy-duty gas turbine and improved quality in hydropower orders [2] - In emerging industries, the hydrogen energy sector secured a demonstration project for 30 heavy trucks, and the largest carbon dioxide storage project globally reached structural completion [2] Demand and Orders - As of June 2025, China's total installed power generation capacity reached 3.65 billion kilowatts, a year-on-year increase of 18.7% [3] - The company secured new effective orders worth 65.485 billion yuan in H1 2025, a 16.78% increase year-on-year, with clean and efficient energy equipment accounting for 37.59% of the orders [3] - The company has a robust order backlog, indicating sustained performance growth in the future [3] Investment Outlook - The company's order backlog supports business growth, driven by both core and emerging industries, leading to expected continued performance growth [3] - Forecasted net profits for 2025-2027 are 4.274 billion yuan, 5.078 billion yuan, and 5.578 billion yuan, representing year-on-year growth rates of 46.3%, 18.8%, and 9.8% respectively [3]

Investment Rating - The investment rating for the company is "Buy" [5][10] Core Views - The company has returned to an upward development trajectory, with its energy equipment business flourishing across multiple sectors [1][2] - The demand remains high, supporting future performance growth, with a significant increase in new effective orders [3] - The company is expected to achieve substantial net profit growth over the next few years, driven by both its main business and emerging industries [3][4] Financial Performance - For the first half of 2025, the company reported a revenue of 37.624 billion, a year-on-year increase of 14.26%, and a net profit of 1.91 billion, up 12.91% year-on-year [1] - The gross profit margin was 15.46%, an increase of 0.1 percentage points year-on-year, while the net profit margin was 5.48%, slightly down by 0.01 percentage points [1] - Research and development expenses reached 1.57 billion, reflecting a year-on-year increase of 16.45% [1] Order Growth and Market Position - The company maintains a leading market share in traditional energy equipment, particularly in nuclear and gas power [2] - New effective orders totaled 65.485 billion in the first half of 2025, representing a year-on-year increase of 16.78% [3] - The composition of new orders includes 37.59% from clean and efficient energy equipment and 30.82% from renewable energy equipment [3] Future Projections - The company is projected to achieve net profits of 4.274 billion, 5.078 billion, and 5.578 billion for the years 2025, 2026, and 2027, respectively, indicating growth rates of 46.3%, 18.8%, and 9.8% [3][4]