GLONGHUI July 17丨Guoxin Securities's research report on the 16th pointed out that Dayuan Pump Industry (603757.SH)'s second-quarter results continued its upward trend, and profitability is expected to continue to rise. According to conversion, net profit from the mother is expected to be 100,000-110 million in 2023Q2, an increase of 37.1%-50.9% over the previous year. The company's profitability is tripled by the optimization of raw material costs, product structure upgrades, and the positive impact of the exchange rate. The profit margin in Q2 is expected to continue to increase. The company's three traditional businesses continued their Q1 growth trend, and new businesses achieved high growth on a low basis. The company has obvious advantages in the field of hydrogen energy vehicle fuel cell liquid cooling pumps. It is expected that the Q2 liquid cooling pump will maintain rapid growth under a low base; in addition, energy storage and data room liquid cooling pumps already have order reserves, and it is expected to generate revenue in the second half of the year. The company's traditional business is growing steadily, and the development of new categories and new markets is on the rise. The products are widely recognized by customers to promote the continuous upgrading and optimization of the sales structure. In the medium to long term, it has sufficient growth momentum as a leading shielding pump segment. The company is a leading shielding pump in China. Traditional civilian pumps are progressing steadily. Household shielding pumps benefit from the upgrading of heat pumps and energy-saving pumps, and the rapid development of various emerging downstream application fields. Considering the company's rapid increase in profitability and high downstream demand in the first half of the year, the profit forecast was raised. It is estimated that the net profit for 2023-2025 will be 3.5/43/50 billion (previous value was 3.2/40/480 million), with a growth rate of 35%/21%/18%; PE=13/11/9x to maintain the “buy” rating.