Core Viewpoint - The company's 1H25 performance met market expectations, with revenue of 12.614 billion yuan and a net profit of 562 million yuan, reflecting year-on-year increases of 9.86% and 15.6% respectively [1] Group 1: Financial Performance - The overall gross margin improved to 14.5%, up 0.2 percentage points year-on-year, driven by better margins in the clean energy and liquid food segments, offsetting declines in the chemical and environmental segments [1] - The net profit margin reached 4.5%, also up 0.2 percentage points year-on-year [1] - The backlog of orders stood at 29.18 billion yuan, remaining stable year-on-year [1] Group 2: Segment Performance - Clean energy segment showed strong revenue growth of 9.626 billion yuan, up 22.2% year-on-year, supported by increasing demand for LNG low-temperature transport vehicles and storage equipment [1] - The clean energy segment's gross margin was 12.7%, up 0.1 percentage points year-on-year, with a reported profit of 560 million yuan, a significant increase of 29.5% year-on-year [1] - New orders in the clean energy segment totaled 8.97 billion yuan, primarily from waterborne clean energy projects, with a backlog of 25.2 billion yuan, up 10% year-on-year [1] Group 3: Chemical and Liquid Food Segments - The chemical segment's revenue was 1.111 billion yuan, down 14.3% year-on-year, due to uncertainties in U.S. trade policy and geopolitical factors affecting demand [2] - The gross margin for the chemical segment decreased to 12.9%, down 2.8 percentage points year-on-year, attributed to lower capacity utilization [2] - The liquid food segment's revenue was 1.877 billion yuan, down 18.6% year-on-year, but the gross margin improved to 24.2%, up 5.1 percentage points year-on-year, due to the release of margins from completed projects [2] Group 4: Future Outlook - The company is optimistic about the continued delivery of clean energy equipment, maintaining a leading global market share in LNG transport and refueling vessels [2] - The successful delivery of the first coke oven gas to LNG and hydrogen project is expected to contribute positively to the company's performance [2] - Profit forecasts for 2025 and 2026 remain unchanged at 1.318 billion yuan and 1.504 billion yuan respectively, with a target price of 9.00 HKD, indicating a potential upside of 25.7% from the current stock price [2]

Investment Rating - The report assigns a "Buy" investment rating for the company, marking the first coverage of the stock [8]. Core Views - The company achieved a total revenue of 52.517 billion yuan in 2024, representing a year-on-year increase of 6.51%, with a net profit attributable to shareholders of 3.656 billion yuan, up 18.66% year-on-year [4][5]. - The domestic market remains the primary revenue source, contributing 98.78% of total revenue, with an improvement in domestic business gross margin by 1.20 percentage points year-on-year [5]. - The company is diversifying its operations into areas such as LNG refueling and renewable energy, including significant projects in offshore solar energy [7]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 18.843 billion yuan, a year-on-year increase of 6.37% and a quarter-on-quarter increase of 56.48% [4]. - The overall gross margin for 2024 was 14.62%, an increase of 1.15 percentage points year-on-year, attributed to cost control and efficiency improvements [5]. Cost Structure and R&D - The company optimized its expense structure, with sales expenses slightly increasing due to business development, while financial expenses decreased due to higher interest income from bank deposits [6]. - R&D expenses decreased as the company focused on major projects and improved the quality and efficiency of its research activities [6]. Technological Development and Diversification - The company has established a technical system for marginal oilfield development and is expanding into LNG refueling and green energy sectors [7]. - Significant projects include the construction of the first gigawatt-level offshore solar project and the launch of a new LNG refueling vessel [7]. Profit Forecast - The company is expected to achieve net profits of 4.079 billion yuan, 4.656 billion yuan, and 5.402 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 9.8, 8.6, and 7.4 [8][10].