Group 1 - As of August 25, 2025, the stock price of Lijun Co. is 15.29 yuan, down 0.59 yuan or 3.72% from the previous trading day [1] - The stock opened at 16.64 yuan, reached a high of 16.67 yuan, and a low of 15.21 yuan, with a trading volume of 1.3749 million hands and a transaction amount of 2.189 billion yuan [1] - At around 11:12 AM, the stock experienced a quick rebound, increasing over 2% within 5 minutes, reaching 16.05 yuan [1] Group 2 - Lijun Co. specializes in the research, production, and sales of specialized equipment, involving sectors such as low-altitude economy and commercial aerospace [1] - The company's total market capitalization is 15.802 billion yuan, with a circulating market value of 8.646 billion yuan [1] - On August 25, the net outflow of main funds was 179 million yuan, accounting for 2.07% of the circulating market value, while the cumulative net inflow over the past five trading days was 207 million yuan, representing 2.39% of the circulating market value [1]

Investment Rating - The report maintains a "Positive" outlook on the defense and military industry, indicating an expectation for continued upward trends in the sector [5][6]. Core Insights - The defense and military sector is entering a significant upward cycle driven by domestic demand, particularly due to military modernization efforts, which are expected to enhance growth opportunities [5]. - The global military trade landscape is evolving, with increasing demand driven by geopolitical changes, leading to a strong resonance between supply and demand in China's military exports [5]. - The report highlights the acceleration of satellite internet constellation launches, indicating a maturation of the commercial aerospace industry in China, which presents a golden opportunity for investment [5]. - Key investment targets include companies involved in next-generation equipment, precision-guided munitions, and those leveraging AI and robotics for enhanced military capabilities [5]. Market Review - Last week, the Shenwan Defense and Military Index rose by 3.07%, while the CSI Military Leaders Index increased by 3.27%. In comparison, the Shanghai Composite Index rose by 3.49%, and the CSI 300 Index increased by 4.18% [6]. - The report notes that the defense and military sector's performance ranked 12th among 31 Shenwan primary industry indices, indicating a relative underperformance compared to other sectors [6]. - The top five performing stocks in the defense and military sector last week included Chengfei Integration (up 35.53%), Zhongtian Rocket (up 28.23%), and Lijun Shares (up 23.10%) [6][13]. Valuation Changes - The current PE-TTM for the Shenwan military sector is 92.71, placing it in the upper range historically, indicating a high valuation compared to past performance [14]. - The report emphasizes that the aerospace and aviation equipment segments are currently at relatively high valuation levels since 2020 [14][18]. Key Valuation Targets - The report provides a detailed valuation table for key companies in the defense and military sector, highlighting projected net profits and PE ratios for the years 2024 to 2027 [20]. - Notable companies include AVIC Shenyang Aircraft Company with a market cap of 1,773.1 billion yuan and a projected PE of 52 for 2027 [20].

Core Viewpoint - The financial performance of Lijun Co., Ltd. (002651) for the first half of 2025 shows a significant decline in revenue and profit, indicating potential challenges in the company's operations and financial health [1][4]. Financial Performance Summary - Total revenue for the first half of 2025 was 314 million yuan, a decrease of 8.91% compared to the same period in 2024 [1]. - Net profit attributable to shareholders was 57.22 million yuan, down 31.72% year-on-year [1]. - The gross profit margin was 40.31%, a decline of 3.72% from the previous year, while the net profit margin fell to 18.21%, down 25.05% [1]. - The total of selling, administrative, and financial expenses reached 46.98 million yuan, accounting for 14.96% of revenue, an increase of 26.49% year-on-year [1]. - Earnings per share decreased to 0.06 yuan, a drop of 25.00% compared to the previous year [1]. Cash Flow and Receivables - The company reported a significant increase in accounts receivable, which accounted for 183.98% of the net profit, indicating potential liquidity issues [1][4]. - Operating cash flow per share was -0.08 yuan, a decrease of 172.31% year-on-year, reflecting reduced cash inflows from sales [1][3]. Changes in Financial Items - The construction in progress decreased by 100% as projects were transferred to fixed assets [3]. - Accounts payable increased by 73.88% due to more bank acceptance bills issued for payment [3]. - Other payables surged by 1418.5% due to cash dividends distributed to shareholders [3]. Investment Returns - The company's return on invested capital (ROIC) was 2.84%, indicating weak capital returns, with a historical median ROIC of 6.07% over the past decade [4].

Group 1 - The core viewpoint of the news is that Lijun Co., Ltd. (002651.SZ) reported its semi-annual results for 2025, highlighting changes in institutional and public fund holdings [1] - As of August 22, 2025, six institutional investors disclosed holdings in Lijun Co., totaling 36.7581 million shares, which represents 3.56% of the company's total share capital [1] - The institutional holding ratio decreased by 0.40 percentage points compared to the previous quarter [1] Group 2 - Among public funds, there was an increase in holdings from one fund, the Southern CSI 1000 ETF, which saw a slight rise in its holding ratio [1] - One new public fund disclosed this period, the Huaxia CSI 1000 ETF, while three public funds were not disclosed compared to the previous quarter [1] - In terms of foreign investment, one foreign fund, Hong Kong Central Clearing Limited, reduced its holdings slightly compared to the previous quarter [2]

Group 1 - The independent directors of Chengdu Lijun Industrial Co., Ltd. held their second special meeting in 2025 on August 21, 2025, via teleconference, with all three independent directors present, complying with legal and regulatory requirements [1] - The company provided a guarantee of up to 400 million yuan for its wholly-owned subsidiary, Lijun Holdings (Singapore) Private Limited, with a balance of 279.3863 million yuan as of the reporting period, which is within the approved limit [1] - No other external guarantee matters occurred during the reporting period, nor were there any other external guarantees carried over from previous years [2] Group 2 - The company agreed to cancel and deregister its wholly-owned subsidiary, Chengdu Lijun International Intelligent Equipment Technology Co., Ltd., and change its name and business scope, which will not adversely affect the overall business development and management of the company [2]

Core Viewpoint - The company reported a decline in both revenue and net profit for the first half of 2025, indicating potential challenges in its financial performance [1] Financial Performance - The company achieved a revenue of 314,129,166.48 yuan for the first half of 2025, representing a year-on-year decrease of 8.91% [1] - The net profit attributable to shareholders of the listed company was 57,202,184.28 yuan, reflecting a year-on-year decline of 31.72% [1]

Core Viewpoint - Chengdu Lijun Industrial Co., Ltd. reported a decline in revenue and net profit for the first half of 2025 compared to the same period last year, indicating potential challenges in its financial performance [1]. Financial Performance - The company's operating revenue for the reporting period was 314,129,166.48 yuan, a decrease of 8.91% from 344,843,629.19 yuan in the previous year [1]. - The net profit attributable to shareholders was 57,202,184.28 yuan, down 31.72% from 83,778,007.42 yuan in the same period last year [1]. - The net cash flow from operating activities was -84,919,724.14 yuan, representing a significant decline of 172.31% compared to 117,446,357.83 yuan in the previous year [1]. - Basic and diluted earnings per share were both 0.06 yuan, a decrease of 25.00% from 0.08 yuan [1]. - The weighted average return on net assets was 2.04%, down from 3.06% [1]. Asset and Equity Status - Total assets at the end of the reporting period were 3,451,478,815.19 yuan, a slight increase of 0.08% from 3,448,606,078.22 yuan at the end of the previous year [1]. - The net assets attributable to shareholders were 2,775,974,096.54 yuan, a decrease of 0.13% from 2,779,628,449.49 yuan [1]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 85,913 [2]. - Major shareholders include He Yamin with 32.34% and He Jia with 28.04%, indicating a significant concentration of ownership [2]. - The relationship between major shareholders He Yamin and He Jia is noted as a father-daughter relationship, classified as acting in concert [2]. Important Events - The company is involved in a lawsuit initiated by China Metallurgical North (Dalian) Engineering Technology Co., Ltd. against its wholly-owned subsidiary, Lijun Holdings, due to a sales contract dispute [3].

Core Viewpoint - Chengdu Leejun Industrial Co., Ltd. reported a decline in revenue and net profit for the first half of 2025, indicating challenges in both its grinding systems and aerospace components manufacturing businesses [2][4]. Financial Performance - The company's operating revenue for the first half of 2025 was approximately CNY 314.13 million, a decrease of 8.91% compared to CNY 344.84 million in the same period last year [2]. - Net profit attributable to shareholders was CNY 57.20 million, down 31.72% from CNY 83.78 million year-on-year [2]. - The net cash flow from operating activities was negative at CNY -84.92 million, a significant decline of 172.31% compared to CNY 117.45 million in the previous year [2][4]. Business Segments Grinding Systems and Equipment Manufacturing - Revenue from grinding systems and related equipment manufacturing was CNY 184.07 million, an increase of 9.96% from CNY 167.40 million in the previous year [4]. - The sales of roller presses and related equipment decreased by 42.39%, while high-pressure roller mills saw a 24.05% increase in sales [4][7]. - The demand for grinding equipment is driven by infrastructure construction and mining industries, with expectations for stable growth in the cement market [4][5]. Aerospace Components Manufacturing - Revenue from aerospace components manufacturing was CNY 130.66 million, a decline of 26.36% from CNY 177.44 million in the previous year [4][7]. - The decrease in revenue was attributed to reduced sales settlements for completed products in the aerospace sector [4][6]. - The aerospace industry is expected to grow due to increased defense modernization and expansion of the civil aviation market [4][6]. Competitive Advantages - The company has a robust R&D system and has been recognized as a high-tech enterprise in Sichuan, holding numerous patents and awards [5][6]. - The aerospace division has established a comprehensive manufacturing chain and is recognized for its technical capabilities and service offerings [6]. Market Outlook - The grinding equipment market is anticipated to benefit from ongoing urbanization and infrastructure investments, while the aerospace sector is poised for growth driven by national policies and market demand [4][6].

Group 1 - The board of directors of Chengdu Lijun Industrial Co., Ltd. held its sixth meeting and made decisions regarding the company's operations [1][2] - The meeting was conducted with 5 directors present in person and 4 participating via remote voting, with a total of 9 votes in favor of the proposals [1] - The company approved the cancellation of its wholly-owned subsidiary Chengdu Lijun Huanji Intelligent Equipment Technology Co., Ltd. and decided to change its name and business scope [1][2] Group 2 - The company's 2025 semi-annual report will be disclosed on August 23, 2025, through various platforms including the Giant Tide Information Network and major financial newspapers [1] - The voting results for the proposals were unanimous, with no votes against or abstentions [2]

Group 1 - The meeting of the sixth supervisory board was held on August 11, 2025, via communication, with three supervisors present [1] - The supervisory board approved the 2025 semi-annual report and summary, confirming that the report's preparation and review process complied with legal and regulatory requirements [1] - The supervisory board concluded that the report accurately reflects the company's actual situation without any false records or significant omissions, with a voting result of 3 votes in favor, 0 against, and 0 abstentions [1][2] Group 2 - The detailed 2025 semi-annual report will be available on August 23, 2025, on various platforms including the company's official announcement [1] - The summary of the semi-annual report will be published in major financial newspapers such as China Securities Journal, Shanghai Securities Journal, and Securities Times on the same date [1]