Core Viewpoint - Daotong Technology has achieved profitability in its AI digital energy business in Q2 2025, with a strong partnership with Huawei opening new growth opportunities [1][5]. Financial Performance - Daotong Technology's 2025 semi-annual performance forecast indicates a net profit attributable to shareholders of 4.6-4.9 billion yuan, representing a year-on-year increase of 19-26.76% [2]. - The company expects a net profit of 8.64 billion yuan in 2025, 10.39 billion yuan in 2026, and 12.50 billion yuan in 2027, with corresponding PE ratios of 25.1, 20.9, and 17.3 times [6]. Business Growth Drivers - The AI-driven digital maintenance and digital energy businesses are experiencing rapid growth, with the launch of new products like the Ultra S2 diagnostic terminal and ADAS calibration system enhancing competitiveness and profitability [3]. - The company has made significant breakthroughs in major global markets, securing large orders from top clients in various industries, which lays a solid foundation for long-term growth [3]. Revenue Structure Optimization - The company has started to separately list AI software revenue, reflecting a shift towards a model where AI software services are charged continuously, with significant growth in the charging cloud business [4]. - The charging cloud business has seen an 80% increase in orders in Q1 2025, indicating strong demand and potential for accelerated revenue growth [4]. Strategic Partnerships - Daotong Technology has become a partner of Huawei, collaborating on the development of integrated smart solutions, which is expected to significantly enhance future growth prospects [5]. - The partnership involves the integration of advanced AI models and hardware, aimed at improving operational efficiency and driving innovation across various business areas [5].

Investment Rating - The report maintains a "Recommendation" rating for the company [1][12] Core Views - The company is expected to achieve a net profit attributable to shareholders of 460 million to 490 million yuan for the first half of 2025, representing a year-on-year growth of 19.00% to 26.76% [4][7] - The company is accelerating the integration of AI technology into its business operations, which is driving growth in its digital repair and smart energy businesses [7][8] - The company has made significant progress in its "Fully Embrace AI" strategy, enhancing its competitive edge and profitability in various markets [7][8] Financial Performance Summary - The company forecasts a net profit of 4.55 billion to 4.85 billion yuan for the first half of 2025, with a substantial year-on-year growth of 57.32% to 67.69% for the net profit excluding non-recurring items [4][7] - For the second quarter of 2025, the expected net profit is between 261 million to 291 million yuan, with a year-on-year change of -0.38% to +11.07% [7] - The company’s revenue is projected to grow from 3,932 million yuan in 2024 to 7,541 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 22.2% [6][10] Profitability Metrics - The gross margin is expected to remain stable around 55.1% to 55.5% from 2025 to 2027 [6][10] - The net profit margin is projected to increase from 16.3% in 2024 to 18.7% in 2027 [6][10] - Return on equity (ROE) is expected to rise from 18.0% in 2025 to 24.5% in 2027 [6][10] Valuation Metrics - The price-to-earnings (P/E) ratio is projected to decrease from 33.0 in 2024 to 15.0 in 2027, indicating an improving valuation as earnings grow [6][10] - The price-to-book (P/B) ratio is expected to decline from 6.3 in 2024 to 3.8 in 2027 [6][10] Strategic Developments - The company has launched new AI-driven products, such as the Ultra S2 diagnostic terminal and ADAS calibration system, which have received positive market feedback [7][8] - The company is expanding its presence in global markets, achieving significant breakthroughs in various industries, including energy and transportation [8]

Core Viewpoint - Daotong Technology (688208.SH) has reported significant growth in its operating performance for the first half of 2025, with a substantial increase in net profit compared to the previous year [1][2]. Financial Performance - The company expects its net profit attributable to shareholders, excluding non-recurring gains and losses, to reach between 455 million to 485 million yuan, representing a year-on-year increase of 16.58 million to 19.58 million yuan, with a growth rate of 57.32% to 67.69% [1]. - The total net profit is projected to be between 460 million to 490 million yuan, an increase of 7.34 million to 10.34 million yuan, with a growth rate of 19.00% to 26.76% [1]. - After excluding non-recurring gains and losses and share-based payment expenses, the net profit is expected to rise to between 470 million to 508 million yuan, with a growth rate of 62.51% to 75.65% [1]. AI Strategy Integration - The significant growth in performance is attributed to the company's ongoing "full embrace of AI" strategy, which enhances product competitiveness and profitability while opening new growth avenues [2]. - In the digital repair sector, the launch of the new Ultra S2 diagnostic terminal and ADAS calibration system has improved diagnostic accuracy and efficiency, leading to rapid growth in this business segment [2]. Market Demand and Product Performance - The TPMS product line has also shown strong performance, driven by increasing global vehicle ownership and heightened consumer focus on driving safety, resulting in high sales growth [2]. - In the smart energy sector, the introduction of a new intelligent charging solution has positioned the company favorably in global markets, particularly in Europe and the U.S., with significant orders from top clients [3]. Robotics Business Outlook - The company is actively exploring opportunities in the AI robotics field, which is on the verge of large-scale application, with trends indicating deeper technology integration and expanded application scenarios [4]. - Collaborations with technology giants are being pursued to build comprehensive solutions in the inspection domain, which will support the future scalability of the robotics business [4]. Internal Management Innovations - The company is implementing AI-driven management transformations across core business areas, enhancing operational efficiency and achieving dual improvements in management innovation and organizational capability [4].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to achieve a non-GAAP net profit of 455-485 million yuan for the first half of 2025, representing a year-on-year increase of 57.3% to 67.7% [7] - The growth is driven by the application of advanced technologies in various product lines, including digital maintenance and digital energy businesses [7] - The company has made significant progress in overseas markets, particularly in the charging station sector, with successful partnerships and product deployments [7] - AI technology is expected to enhance core business operations, with a focus on commercializing solutions in collaboration with Huawei [7] - The report forecasts net profits of 800 million yuan, 980 million yuan, and 1.18 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 27, 22, and 18 [7] Financial Summary - Total revenue is projected to grow from 3.25 billion yuan in 2023 to 7.56 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 25.68% [1] - The net profit attributable to shareholders is expected to increase from 179.23 million yuan in 2023 to 1.18 billion yuan in 2027, reflecting a CAGR of 20.46% [1] - The earnings per share (EPS) is forecasted to rise from 0.27 yuan in 2023 to 1.77 yuan in 2027 [1]

Group 1 - The A-share market has seen an acceleration in the disclosure of semi-annual performance forecasts, with 54 companies announcing their forecasts as of July 6, 2025, indicating a slight increase of 11 companies, 3 companies turning losses into profits, 4 companies maintaining profits, and 21 companies expecting profit growth [1][4] - Companies like Taotao Automotive (301345) have expressed confidence in continued growth for the second half of the year, expecting a net profit of 310 million to 360 million yuan for the first half of 2025, representing a year-on-year increase of 70.34% to 97.81% [2][4] - Jingbeifang (002987) experienced significant stock price fluctuations after intensive institutional research, with a cumulative price deviation exceeding 20% over three consecutive trading days [2][4] Group 2 - Chipong Micro (芯朋微) expects a revenue of approximately 630 million yuan for the first half of 2025, an increase of about 176 million yuan or 38% year-on-year, with a net profit forecast of around 90 million yuan, reflecting a growth of approximately 104% [4] - Daotong Technology (道通科技) anticipates a net profit of 460 million to 490 million yuan for the first half of 2025, representing a year-on-year growth of 19% to 26.76% [4] - Changchuan Technology (长川科技) projects a net profit of 360 million to 420 million yuan for the first half of 2025, indicating a year-on-year increase of 67.54% to 95.46% due to rapid growth in the integrated circuit industry and strong customer demand [5]

Group 1 - The company forecasts a net profit from non-recurring gains between 455 million to 485 million yuan, representing an increase of 26.76% compared to the same period last year [1] - The net profit from regular operations is expected to be between 470 million to 508 million yuan, showing a year-on-year growth of 62.51% to 75.65%, with an increase of 180.78 million to 218.78 million yuan [1] - The previous year's net profit attributable to the parent company was 386.56 million yuan, with a net profit excluding non-recurring gains of 289.22 million yuan [1] Group 2 - The company is advancing its "fully embrace AI" strategy, integrating AI technology deeply into business scenarios, which has enhanced product competitiveness and profitability [2] - The Ultra S2 and ADAS calibration systems are utilizing "repair large models" and AI agents, leading to increased sales and customer recognition [2] - The AI digital repair application business has experienced rapid growth, enhancing market influence and profitability [2] Group 3 - The company has made significant breakthroughs in major global markets such as Europe and the United States, achieving top-tier clients in various industries including energy, transportation, and hospitality [2] - The AI digital source business achieved profitability in the second quarter [2] - The company is focusing on management innovation and operational efficiency optimization, leading to continuous improvements in quality and cost reduction [2]

Core Viewpoint - The focus of the market is shifting towards performance, with many listed companies announcing significant profit increases for the first half of 2024, indicating a positive trend in earnings expectations [1][2]. Performance Highlights - Chipong Micro (芯朋微) expects a net profit increase of approximately 104% year-on-year for the first half of 2025, with projected revenue of around 630 million yuan, a 38% increase [4][5]. - Guohuo Airlines (国货航) anticipates a net profit of 1.18675 billion to 1.26675 billion yuan, reflecting a year-on-year growth of 78.13% to 90.14% [6]. - Daotong Technology (道通科技) projects a net profit of 460 million to 490 million yuan, representing a year-on-year increase of 19% to 26.76% [6]. Market Reactions - Following the announcements of performance increases, many A-share companies experienced significant stock price surges, with some stocks hitting the daily limit up [8]. - A total of 53 A-share companies have released performance forecasts for the first half of 2024, with 17 companies expecting net profit increases exceeding 90% [2][8]. Sector Insights - The semiconductor and technology sectors are highlighted as key areas of focus, with expectations of continued growth driven by AI innovations and strong performance in TMT (Technology, Media, and Telecommunications) sectors [10][11]. - The overall industrial output value in the TMT manufacturing sector is maintaining a growth rate of over 10%, indicating robust sector performance [10]. Strategic Focus - Companies are advised to concentrate on sectors with high earnings certainty, such as overseas computing, gaming, military, and exports, as these are expected to be major sources of excess returns in July [11][12].

[Current Period Earnings Forecast](index=1&type=section&id=%E4%B8%80%E3%80%81%E6%9C%AC%E6%9C%9F%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%91%8A%E6%83%85%E5%86%B5) This section discloses the H1 2025 earnings forecast, including key net profit metrics and growth rates, noting the data is unaudited [Earnings Forecast Period](index=1&type=section&id=(%E4%B8%80)%20%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%91%8A%E6%9C%9F%E9%97%B4) The report specifies the exact time frame covered by this earnings forecast - The earnings forecast period is from January 1, 2025, to June 30, 2025[3](index=3&type=chunk) [Earnings Forecast Details](index=1&type=section&id=(%E4%B8%8C)%20%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%91%8A%E6%83%85%E5%86%B5) This section details the estimated ranges and year-over-year growth for key net profit indicators in H1 2025 H1 2025 Earnings Forecast Key Financial Indicators | Indicator | Estimated Amount (RMB 10,000s) | YoY Increase (RMB 10,000s) | YoY Growth Rate (%) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-Recurring Items) | 45,500 - 48,500 | 16,578 - 19,578 | 57.32 - 67.69 | | Net Profit Attributable to Parent Company Shareholders | 46,000 - 49,000 | 7,344 - 10,344 | 19.00 - 26.76 | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-Recurring Items and Share-Based Payments) | 47,000 - 50,800 | 18,078 - 21,878 | 62.51 - 75.65 | - Net profit attributable to parent company shareholders, excluding non-recurring items, is projected to **increase by 57.32% to 67.69% YoY** in H1 2025[3](index=3&type=chunk) - Net profit attributable to parent company shareholders is projected to **increase by 19.00% to 26.76% YoY** in H1 2025[3](index=3&type=chunk) [Unaudited Statement](index=1&type=section&id=(%E4%B8%89)%20%E6%9C%AC%E6%AC%A1%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%91%8A%E6%9C%AA%E7%BB%8F%E6%B3%A8%E5%86%8C%E4%BC%9A%E8%AE%A1%E5%B8%88%E5%AE%A1%E8%AE%A1) This statement emphasizes the preliminary and unaudited nature of the earnings forecast - This earnings forecast has **not been audited** by a certified public accountant[3](index=3&type=chunk) [Prior Year Period Performance and Financial Position](index=1&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E4%B8%9A%E7%BB%A9%E6%83%85%E5%86%B5%E5%92%8C%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5) This section provides key net profit figures from the same period in 2024 for a comparative baseline Key Financial Indicators for the Prior Year Period | Indicator | Amount (RMB 10,000s) | | :--- | :--- | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-Recurring Items) | 28,921.57 | | Net Profit Attributable to Parent Company Shareholders | 38,656.41 | - Net profit attributable to parent company shareholders, excluding non-recurring items, was **RMB 289.22 million** in the prior year period[4](index=4&type=chunk) - Net profit attributable to parent company shareholders was **RMB 386.56 million** in the prior year period[4](index=4&type=chunk) [Main Reasons for Performance Change in the Current Period](index=1&type=section&id=%E4%B8%89%E3%80%81%E6%9C%AC%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%98%E5%8C%96%E7%9A%84%E4%B8%BB%E8%A6%81%E5%8E%9F%E5%9B%A0) This section details the primary drivers of H1 2025 performance growth, centered on the company's "Embrace AI" strategy [Growth in AI Digital Repair Application Business](index=2&type=section&id=1%E3%80%81AI%20%E6%95%B0%E5%AD%97%E7%BB%B4%E4%BF%AE%E5%BA%94%E7%94%A8%E4%B8%8A%E5%B8%82%EF%BC%8C%E9%94%80%E5%94%AE%E9%87%8F%E4%BB%B7%E5%90%8C%E6%AD%A5%E6%8F%90%E5%8D%87) The launch of new AI-integrated diagnostic and calibration systems drove simultaneous growth in sales volume and price - The new-generation comprehensive diagnostic terminal Ultra S2 and ADAS calibration system, empowered by a "repair large model" and AI Agents, enhanced product competitiveness and profitability, leading to **increased sales volume and prices**[6](index=6&type=chunk) - TPMS products maintained **high-speed growth**, benefiting from the vast automotive aftermarket replacement market[6](index=6&type=chunk) - The AI digital repair application business achieved **rapid growth**, continuously enhancing market influence and profitability[6](index=6&type=chunk) [Profitability and Market Breakthrough in AI Digital Energy Business](index=2&type=section&id=2%E3%80%81AI%20%E6%95%B0%E6%99%BA%E8%83%BD%E6%BA%90%E6%8C%81%E7%BB%AD%E7%AA%81%E7%A0%B4%EF%BC%8C%E5%8D%95%E5%AD%A3%E5%BA%A6%E5%AE%9E%E7%8E%B0%E7%9B%88%E5%88%A9) The AI Digital Energy business achieved profitability in the second quarter through new solutions and key client acquisitions - The company launched a new generation of intelligent charging solutions and released the "Digital Energy Charging Large Model" along with a series of AI Agents applications for charging operations, maintenance, and energy management[6](index=6&type=chunk) - Significant breakthroughs were made by securing **top-tier clients** in sectors such as energy, transportation, and hospitality across major global markets including Europe and the United States[6](index=6&type=chunk) - The AI Digital Energy business **achieved profitability in the second quarter**[6](index=6&type=chunk) [Deepened AI Robotics Ecosystem Collaboration](index=2&type=section&id=3%E3%80%81AI%20%E6%9C%BA%E5%99%A8%E4%BA%BA%E7%94%9F%E6%80%81%E4%BC%99%E4%BC%B4%E5%85%A8%E9%9D%A2%E6%B7%B1%E5%85%A5%E5%90%88%E4%BD%9C) The company advanced its "co-build, co-operate, co-sell" model with tech giant partners for intelligent inspection solutions - The company engaged in comprehensive and in-depth cooperation with tech giant ecosystem partners, practicing a **"co-build, co-operate, co-sell" model**[6](index=6&type=chunk) - An integrated air-ground cluster intelligent solution for the inspection field was constructed, featuring **"intelligent agent + platform + domain-specific model"**[6](index=6&type=chunk) [AI-Driven Operational Management for Cost Reduction and Efficiency Improvement](index=2&type=section&id=4%E3%80%81%E5%85%A8%E9%9D%A2%20AI%EF%BC%8C%E9%99%8D%E6%9C%AC%E6%8F%90%E6%95%88) AI-driven digital transformation across core business functions has led to continuous operational optimization and efficiency gains - The company continues to advance an **AI-driven digital transformation** of its operational management across core business scenarios including R&D, marketing, supply chain, and corporate functions[7](index=7&type=chunk) - Management innovation and organizational capability building have led to **continuous optimization of operational efficiency**, resulting in sustained quality improvements, cost reductions, and increased effectiveness[7](index=7&type=chunk) [Risk Warning](index=2&type=section&id=%E5%9B%9B%E3%80%81%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) This section clarifies that the forecast is a preliminary, unaudited estimate by the finance department - The projected performance data is a **preliminary calculation** by the company's finance department and has not been audited by a certified public accountant[8](index=8&type=chunk) - The company believes there are **no material uncertainties** that would affect the accuracy of this earnings forecast[8](index=8&type=chunk) [Other Explanatory Matters](index=2&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E8%AF%B4%E6%98%8E%E4%BA%8B%E9%A1%B9) This section advises investors to refer to the official semi-annual report for final data and to be aware of investment risks - The main financial data for H1 2025 contained in this forecast are **preliminary figures**[9](index=9&type=chunk) - Investors are advised to refer to the **official H1 2025 report** for specific and accurate financial data and to be mindful of investment risks[9](index=9&type=chunk)

Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The recent trade agreement between the US and Vietnam is favorable for Chinese manufacturers with production capacity in Vietnam, such as Ruiming Technology and Daotong Technology. This agreement clarifies tariff situations, allowing these companies to benefit from lower tariffs when exporting to the US [6] - Ruiming Technology has invested in a smart manufacturing center in Vietnam since 2022, which began production in May 2023. The company estimates that the US market will account for nearly 15% of its total revenue in Q1 2025, supported by strong bargaining power due to high product technology content and deep customer ties [6] - Daotong Technology has diversified its production capacity, which will mitigate the impact of tariffs. The company has established an SMT production line in Vietnam since 2020 and aims for 50% of its total revenue to come from the US by 2024. The company is also expanding its presence in Mexico, benefiting from zero-tariff advantages under the US-Mexico-Canada Agreement [6] Summary by Sections Trade Agreement Impact - The US-Vietnam trade agreement imposes a 20% tariff on goods imported from Vietnam to the US, while Vietnam will exempt US imports. Products from other countries transiting through Vietnam will face a 40% tariff [6] - This agreement is expected to benefit companies like Ruiming Technology and Daotong Technology, which have established production facilities in Vietnam [6] Company Performance - Ruiming Technology's high product technology content and strong customer relationships enhance its pricing power, leading to high gross margins and potential profit growth [6] - Daotong Technology's AI initiatives and diversified production strategies are expected to drive further performance improvements [6] Financial Analysis - Ruiming Technology's estimated EPS for 2025 is 2.41 CNY, with a PE ratio of 20.37x, while Daotong Technology's estimated EPS is 1.79 CNY, with a PE ratio of 17.88x [7]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to mitigate the impact of tariffs through various measures, with its charging pile business entering a harvest period in overseas markets, leading to a continuous increase in orders [7] - The AI ground-air integration solution showcased at the Huawei Developer Conference (HDC 2025) highlights the company's technological maturity and its deep collaboration with Huawei Cloud, accelerating the commercialization of AI products [7] - The company's revenue and profit forecasts have been adjusted upwards for 2025, 2026, and 2027, reflecting strong growth potential [7] Financial Forecasts - Total revenue is projected to grow from 3,251 million RMB in 2023 to 7,556 million RMB in 2027, with a compound annual growth rate (CAGR) of approximately 25.68% [1] - Net profit attributable to the parent company is expected to increase from 179.23 million RMB in 2023 to 1,183.18 million RMB in 2027, indicating a significant growth trajectory [1] - The latest diluted EPS is forecasted to rise from 0.27 RMB in 2023 to 1.77 RMB in 2027, reflecting strong earnings growth [1] Market Data - The closing price of the company's stock is 32.01 RMB, with a market capitalization of approximately 21,452.57 million RMB [5] - The company has a price-to-earnings (P/E) ratio of 119.69 based on the current price and latest diluted EPS, which is expected to decrease to 18.13 by 2027 [1][5] Operational Developments - The company has responded to the new 20% tariff on imports from Vietnam by increasing prices of its digital energy products by 7% to 10% and is planning to build a new factory in Mexico to optimize its supply chain [7] - The collaboration with Shell in Europe marks a significant breakthrough for the company's charging pile products, validating their competitiveness and local adaptability [7]