For 1H26, revenue/attributable net profit (NP)/recurring NP were RMB821/135/ 126mn (-4.25/-28.07/-27.63% YoY). For 2Q26, revenue/attributable NP/recurring NP were RMB423/68/64mn (-5.35/-26.64/-27.17% YoY, +6.32/+2.68/+4.59% QoQ). Heavier operating pressure on the international mechanical seal business and intensified competition in value-added segments weighed on the GPM. However, we think that the company's leading position in China's mechanical seal market remains solid, with backlog orders staying ample. As existing orders enter revenue recognition and overseas presence expands, earnings could pick up. Maintain BUY.
2Q26 GPM recovered QoQ, but overall profitability stayed soft
For 1H26, revenue edged down by 4.25% YoY, mainly because the mechanical seal business faced greater operating pressure in international markets, leading to a revenue decline. For 1H26, the GPM fell by 4.49pp YoY to 39.54%, mainly affected by intense market competition. The GPMs for incremental mechanical seal businesses and special valve businesses declined, while the GPMs for existing mechanical seal businesses and rubber/plastic seal businesses were broadly stable. For 2Q26, the GPM was 42.35%, down by 1.31pp YoY but up by 5.81pp QoQ, indicating profitability recovered from 1Q26. For 1H26, the sales/ administrative/R&D/financial expense ratios were 8.10/7.36/5.19/0.26% (-0.14/ +0.14/+0.88/+1.06pp YoY). The overall expense ratio was 20.92%, up by 1.95pp YoY. R&D investment kept increasing, while financial expenses were mainly affected by FX fluctuations. Overall profitability remained under pressure.
Earnings forecasts and valuation
Downstream petrochemical companies' capital expenditures have yet to recover and the GPM remains temporarily sluggish. We thus cut our 2026/2027/2028 attributable NP forecasts by 11/10/9% to RMB377/420/468mn (previous: RMB423/466/516mn). We value the stock at 19x 2026E PE (previous: 22x), in line with its peers’ average on iFind consensus. We trim our target price to RMB34.39 (previous: RMB44.38).
Risks: weaker-than-expected downstream demand and weaker-than-expected subsidiary consolidation outcomes.

　　公司公布26年中报：26H1实现营收8.21亿元（yoy-4.25%），归母净利1.35亿元（yoy-28.07%），扣非净利1.26亿元（yoy-27.63%）；Q2单季度实现营收4.23亿元（yoy-5.35%/qoq+6.32%），归母净利0.68亿元（yoy-26.64%/qoq+2.68%），扣非净利0.64亿元（yoy-27.17%/qoq+4.59%）。公司利润下滑主要系机械密封板块国际业务经营压力较大、增量业务竞争加剧拖累毛利率，但我们认为公司国内机械密封龙头地位稳固、在手订单维持高位，随着存量业务订单释放及海外市场拓展逐步兑现，业绩有望逐步修复，维持“买入”评级。
　　Q2毛利率环比有所修复，盈利能力整体仍承压
　　公司H1营收同比略降4.25%，主要系机械密封板块国际业务经营压力较大，收入有所下滑。公司H1毛利率39.54%，同比-4.49pct，主要受激烈的市场竞争影响，机械密封增量业务及特种阀门业务毛利率有所下降，机械密封存量业务及橡塑密封业务毛利率基本稳定；Q2毛利率42.35%，同比-1.31pct/环比+5.81pct，盈利能力较Q1有所修复。费用方面，H1销售/管理/研发/财务费用率分别为8.10%/7.36%/5.19%/0.26%，同比-0.14/+0.14/+0.88/+1.06pct，合计期间费用率20.92%，同比+1.95pct，其中研发投入持续增加，财务费用主要受汇率波动影响。公司整体盈利能力有所承压。
　　国内机械密封业务稳健发展，国际业务期待后续反弹
　　1）国内机械密封：存量业务稳定，H1签订盛虹石化干气密封维修/保养独家框架合同，与重要客户深度绑定。且拓展纺织行业大轴径搅拌密封、空气储能项目碳环密封、商业航天市场涡轮泵干气密封等新行业订单，增量业务边界有所拓宽。2）国际机械密封：国际形势变化带来的市场需求波动与项目进度调整导致H1收入下滑40%左右。但公司不断开拓市场区域，如签订阿布扎比国家石油公司首个战后重建项目压缩机干气密封配套订单等，并开始参与其旗下大部分新建项目；成功交付埃维能瑞士公司超高压干气密封产品、在欧洲市场实现突破；进入道达尔能源全球合格供应商名单等。公司H1成立全资子公司中密国际以专攻国际业务，未来国际业务发展值得期待。
　　橡塑密封/特种阀门稳健增长，子公司业绩同比提升
　　1）橡塑密封板块：子公司优泰科H1收入0.78亿元，同比+4.67%，净利0.17亿元，同比+16.77%，新增订单持续增长，矿山机械领域为重要业绩来源；强化全氟醚橡胶产品在石化行业的推广力度；水电行业业绩逐步积累。KSGmbH收入0.47亿元，同比+7.02%，下游液压行业订单同比有所提升；净利195万元，同比+199%，主要系去年低基数影响。2）特种阀门板块：子公司新地佩尔收入0.63亿元，同比+2.76%，净利755万元，同比+16.19%，业绩表现稳健、积极推进市场开拓与项目跟进。
　　盈利预测与估值
　　考虑到下游石化资本开支仍待复苏、短期毛利率有所承压，我们下调公司26-28年归母净利润预测为3.77/4.20/4.68亿元（前值为4.23/4.66/5.16亿元，下调11%/10%/9%）。可比公司2026年iFind一致预期PE均值为19倍（前值22倍），给予公司2026年19倍PE（前值22倍），下调对应目标价为34.39元（前值44.38元）。
　　风险提示：下游行业需求不及预期，对收购公司整合效果不及预期。

Sinoseal Holding’s 1Q26 revenue was RMB398mn(-3.05%YoY);the attributable net profit fell by 29.48%YoY to RMB67mn,and the recurring net profit fell by 28.10%YoY to RMB61mn,mainly because weak downstream petrochemical demand and increasingly fierce international market competition led to aYoY decline in the GPM of incremental mechanical seal orders.In addition,the share of these orders climbed YoY,further dragging down the overall profit margin.We maintain our BUY rating,expecting earnings improvements fueled by three catalysts:1)orders on hand are translating into revenue;2)a potential recovery in new orders as the macro environment stabilizes;and 3)global expansion offers incremental revenue.
New orders faced heavy GPM pressure,expense control solid
For 1Q26,the GPM was 36.54%(-7.89pp YoY/-13.20pp QoQ).We attribute the GPM decline mainly to intensified competition and short-term changes in the mix of existing and new orders.Weak domestic petrochemical demand and intensified international competition were more visible headwinds during the quarter that dented the GPM of incremental orders,while arising share of these orders weighed on the overall GPM.For 1Q26,the sales/administrative/R&D/financial expense ratios were 6.75/6.31/4.66/0.21%(-0.84/-0.95/+0.56/+0.61pp YoY).The overall expense ratio was 17.94%(-0.62pp YoY),indicating solid expense control.
Orders on hand to shore up GPM
The proportion of legacy orders in backlogs is slightly higher than that of new orders.For 1Q26,despite the pressure on incremental orders,the GPM of legacy orders remained stable YoY.Legacy orders on hand could in our view drive aGPM recovery going forward.Regarding new orders,we expect the macro environment to gradually improve in 2026.Domestically,some large petrochemical projects suspended in 2025 have been gradually restarting,and we expect them to translate into orders.The coal chemical sector’s construction in progress fared well.Internationally,the progress of some projects previously affected by external factors has recovered,while trends such as Middle East reconstruction also bring potential market opportunities.As higher-GPM legacy orders gradually translate into revenue and arallying macro environment brings new orders,we expect the company’s earnings to pick up.
Globalization to bring new growth potential
The company is rapidly scaling its international presence,and new orders account for around 70-75%of its overseas orders.Despite intensifying global competition,the company is dedicated to overseas expansion.To optimize resource allocation and deepen its global footprint,it is fast-tracking the establishment of adedicated overseas subsidiary and accelerating the rollout of multiple international service centers.This move is designed to systematically fortify its business development capabilities and project execution standards in key overseas markets.We view this as astrategic inflection point that could unlock significant incremental revenue potential and drive the next leg of the company’s global growth.
Earnings forecasts and valuation
We largely maintain our 2026/2027/2028 attributable net profit forecasts at RMB423/466/516mn,with EPS of RMB2.03/2.24/2.48.We value the stock at 22x 2026E PE,at par with its peers’average on iFind consensus.Our target price is RMB44.38(previous:RMB48.21,based on 24x 2026E PE).
Risks:Lower downstream demand than we expect;slow post-acquisition integration.

　　中密控股发布一季报，26Q1实现营收3.98亿元（yoy-3.05%），归母净利0.67亿元（yoy-29.48%），扣非净利0.61亿元（yoy-28.10%），利润下滑主要系下游石化行业需求较弱、国际业务市场竞争日趋激烈，导致机械密封板块增量业务毛利率同比下滑，而其结构占比同比提升，拉动整体利润率下行。但随存量订单逐步释放、宏观环境转暖有望带来新订单、公司拓展全球市场带来潜在增量空间，公司业绩有望改善，维持“买入”评级。
　　增量业务毛利率承压显著，期间费用管控良好
　　26Q1公司毛利率36.54%，同比-7.89pct/环比-13.20pct，毛利率下滑主要受行业竞争加剧与短期增存量业务结构占比变化双重影响。公司增量业务前期市场竞争异常激烈，国内石化需求偏弱、国际业务竞争加剧，影响在26Q1集中体现，导致增量业务毛利率降低；而公司26Q1增量业务占比有所提升，拉低整体毛利率水平。期间费用率方面，26Q1销售/管理/研发/财务费用率分别为6.75%/6.31%/4.66%/0.21%，同比-0.84/-0.95/+0.56/+0.61pct；合计期间费用率达17.94%，同比-0.62pct，期间费用管控良好。
　　存量业务在手订单有望带动毛利率回升，期待新订单进一步落地
　　从订单层面来看，公司目前在手订单中存量业务占比略高于增量业务占比。而26Q1在增量业务承压背景下，公司存量业务毛利率同比仍维持稳定，存量业务在手订单后续有望带动毛利率回升。新订单方面，26年宏观环境有望逐步改善。国内方面，25年暂缓的部分大型石化项目已出现重启趋势，期待可以顺利转化为实际订单。煤化工领域则延续了25年的建设节奏，保持稳步推进。国际业务方面，此前受外部因素影响的部分项目进度有所恢复，同时中东重建等动向也带来潜在市场机会。随毛利率较高的存量业务订单逐步释放、叠加宏观环境转暖有望带来新订单，公司业绩有望改善。
　　坚定拓展全球市场，有望进一步带来增量空间
　　公司国际业务快速扩张，从结构上看，目前增量业务约占整体国际业务的70%~75%。虽然面临日益激烈的国际市场竞争，公司仍坚定拓展全球市场。为优化资源配置、深化国际化布局，公司正积极推进全资子公司的成立、加速多个海外维修中心的建设，专注于国际市场的开拓与运营。该子公司的成立或将全方位提升公司在国际市场的业务拓展能力与项目执行水平，系统性推进国际业务实现更大发展，有望进一步带来增量空间。
　　盈利预测与估值
　　我们基本维持公司26-28年归母净利润预测为4.23/4.66/5.16亿元，对应EPS为2.03、2.24、2.48元。可比公司2026年iFind一致预期PE为22倍，给予公司26年22倍PE估值，对应目标价为44.38元（前值48.21元，对应26年24倍PE）。
　　风险提示：下游行业需求不及预期，对收购公司整合效果不及预期。

Sinoseal Holding has released its annual report, achieving revenue of RMB1.77bn for 2025 (up by 12.91% YoY), an attributable NP of RMB385mn (down by 1.80% YoY), and a recurring NP of RMB366mn (up by 0.09% YoY). For 4Q25, revenue was RMB485mn (up by 14.58% YoY, up by 13.98% QoQ), and the attributable NP was RMB107mn (down by 11.84% YoY, up by 18.01% QoQ). The profit decline was mainly due to share-based payment amortization—excluding this impact, the attributable NP would have been RMB415mn (up 5.40% YoY). For 2025, the attributable NP was slightly below our previous forecast (RMB427mn), primarily due to tepid downstream demand and the consolidation of KS GmbH, which has lower gross margins, leading to weaker profitability than we expected. However, we remain positive on the company’s active expansion into overseas growth markets and its competitive advantages in the domestic market, anticipating stable growth ahead. Maintain BUY.
GPM slightly constrained, with sound expense control
For 2025, the company’s GPM was 45.58% (down by 2.76pp YoY), mainly due to slight margin declines in incremental businesses within the mechanical seal segment and the consolidation of KS GmbH, which has relatively lower margins, in the rubber and plastic seal segment. For 4Q25, the GPM was 49.74% (-0.59pp YoY, +5.78pp QoQ). Regarding expense ratios, the 2025 sales/administrative/ financial/R&D expense ratios were 8.62/6.86/-0.45/5.08% (-0.44/+0.32/-0.27/ +0.24pp YoY). The overall expense ratio was 20.10% (-0.15pp YoY), reflecting effective cost control.
Domestic market share rising; actively expanding overseas market
1) In the domestic market, although large-scale integrated refining and chemical projects remained scarce in 2025, the company strengthened its industry leadership position and further increased market share. The coal chemical industry, especially new projects in Xinjiang, saw accelerated development, bringing new market opportunities. Additionally, in 2025, the company supported multiple CCUS projects, including those for PetroChina Xinjiang Oilfield, Tarim Petrochemical, and Huadian Mulei, achieving sustained strides in the new energy sector. 2) In the international market, the company completed supplier qualification approvals for multiple clients in regions/countries such as the Middle East, Europe, and South Korea in 2025, with international revenue from the mechanical seal segment reaching nearly RMB240mn (up ~20% YoY). The company has decided to establish a wholly-owned subsidiary focused on international markets to enhance global business expansion and project execution capabilities. Meanwhile, its Vietnam maintenance center commenced operations in 2025, with additional centers in the Middle East and Indonesia scheduled to launch in 2026, further improving international service capabilities. The company continues to pursue its internationalization strategy, with overseas revenue poised to grow further.
Earnings forecasts and valuation
Considering that downstream petrochemical capex has yet to recover, we lower our 2026/2027 attributable NP forecasts to RMB424/470mn (adjusted down by 13.65/16.28% from our prior estimates) and introduce our new 2028 attributable NP forecast of RMB521mn, with EPS of RMB2.04/2.26/2.51. Given the company’s active expansion into overseas incremental markets with potential for further breakthroughs, we value the stock at 24x 2026E PE, on par with its peers’ average on iFind consensus. We raise our target price to RMB48.21 (previous: RMB47.20 on 20x 2026E PE).
Risks: lower downstream demand than we expect; slow post-acquisition integration.