The company publishes 2024 annual report and 2025 quarterly report
In 2024, the company achieved a total operating income of 4.531 billion yuan, a year-on-year decrease of 5.91%; net profit to mother of 0.11 billion yuan, a year-on-year increase of 123.46%; net profit after deducting non-recurring profit and loss of 0.034 billion yuan, an increase of 107.90%; net cash flow from operating activities of 0.237 billion yuan; and a weighted average return on net assets of 3.57%, an increase of 1.94 pct over 2023. In the first quarter of 2025, the company achieved revenue of 1.163 billion yuan (+0.26%); net profit due to mother 0.03 billion yuan (+2.90%); net profit after deduction of 0.031 billion yuan (+25.59%).
Industrial refrigeration actively develops high-end customers. The commercial cold chain business is leading in terms of industrial refrigeration. Industrial refrigeration is an important field reflecting the company's core cooling and heating technology. The company's industrial refrigeration technology is close to major international competitors and has caught up in some fields. During the reporting period, the company actively served high-end customers and signed a number of high-standard projects in the fields of petroleum refining and chemical integration, fine chemicals, new materials, etc., and the market competitiveness was strong. In terms of commercial refrigeration, the company is the first in China to open a green intelligent cold chain from the first kilometer of the field to the last 100 meters of residential communities, and has leading competitiveness. Regarding food freezing and refrigeration, the company provides better solutions for food freezing in line with China's new needs on the basis of absorbing relevant experiences in Japan, Europe and the United States.
The M&A business is developing steadily and continuing to expand new businesses
During the reporting period, all of the company's mergers and acquisitions of Songyang's subsidiaries developed steadily. Among them, Songyang compressors are actively expanding the European and South American markets, and export revenue is growing rapidly; Songyang Refrigeration focuses on industrial energy efficiency and establishes overseas divisions to quickly open up overseas channels and vigorously promote the export of lithium bromide absorption chillers; and Songyang Chillers focuses on product development, focusing on new fields of dual carbon and energy storage. In new business areas, the company continues to expand around the country's strategic requirements for energy saving, carbon reduction and sustainable development. The company has made good progress in new businesses such as energy storage and heat management and CCUS, and orders have increased dramatically.
Investment advice
We consider the current weak demand in industrial industries such as downstream chemicals, so we revised the company's profit forecast to: 2025-2027 is 4.997/5.519/6.179 billion yuan (the value before 2025-2026 was 6.092/6.987 billion yuan); net profit to mother is 0.16/0.207/0.27 billion yuan, respectively (value before 2025-2026 was 0.158/0.205 billion yuan); corresponding EPS was 0.19/0.25/0.32 yuan (the value before 2025-2026 was 0.19/0.24 yuan). The PE corresponding to the company's current stock price is 29/22/17 times. Maintain a “buy” investment rating.
Risk Alerts
1) Risk of policy fluctuations; 2) Risk of increased market competition affecting profit margins; 3) Risk of large fluctuations in raw materials; 4) Risk of information based on research not being updated in a timely manner to fully reflect the company's latest situation.
