Group 1: Company Overview and Financial Performance - Wuxi Longsheng Technology Co., Ltd. has established a business matrix centered on EGR systems, new energy vehicle drive motor cores, and precision automotive components, with significant market penetration in commercial vehicles, passenger cars, and new energy vehicles [2][3] - In the first half of 2025, the company achieved revenue of CNY 1.224 billion, representing a year-on-year growth of approximately 15.44% [3] - The net profit attributable to shareholders was CNY 107 million, with a year-on-year increase of about 1.38% [3] - The non-recurring net profit was CNY 100 million, reflecting a year-on-year growth of approximately 4.63% [3] Group 2: EGR Business Segment - The EGR segment reported a revenue increase of approximately 28% in the first half of 2025 [3] - The market share of hybrid vehicles is continuously rising, providing solid support for the growth of the EGR business [3] - The company has established a customer network that includes major domestic automakers such as BYD, Chery, and Geely, and has successfully entered the supply chains of Chang'an Automobile and Dongfeng Nissan [3] Group 3: New Energy Core Business - The company is transitioning its new energy business from "core components" to "core sub-assemblies," with a focus on meeting the needs of leading clients like Jinkang Power and Bosch [3] - The first set of core sub-assembly products was successfully launched in June 2025, marking a significant breakthrough in the strategic transformation [3] Group 4: Robotics Business Development - The company leverages over 20 years of experience in precision manufacturing to establish a solid foundation for its robotics sector [4][5] - The robotics division operates under a dual-driven model focusing on core component development and complete machine iteration [5] - The company has made significant advancements in the development of lightweight harmonic reducers, achieving a weight reduction of 30%-40% without compromising performance [5] Group 5: Production Capacity and Market Expansion - The current production capacity for harmonic reducers is around 20,000 units, with plans to expand to approximately 70,000 units by Q1 2026 [5] - The robotics segment has successfully engaged with overseas Tier 1 suppliers, although its contribution to total revenue remains relatively small [5]

Group 1 - Longsheng Technology's stock price increased by 5.54% to 46.68 CNY per share, with a trading volume of 832 million CNY and a turnover rate of 10.76%, resulting in a total market capitalization of 10.63 billion CNY [1] - The stock has experienced a continuous rise for three days, accumulating a total increase of 3.9% during this period [1] - Longsheng Technology, established on June 16, 2004, and listed on July 25, 2017, operates in the engine exhaust gas recirculation (EGR) system, new energy, and precision components sectors, with revenue composition of 62.71% from other products and 37.29% from EGR products and injection systems [1] Group 2 - According to data from the top ten holdings of funds, one fund under GF Fund has a significant position in Longsheng Technology, with GF Zhaoli Mixed A holding 78,500 shares, accounting for 3.77% of the fund's net value, ranking as the tenth largest holding [2] - The fund has realized a floating profit of approximately 192,300 CNY today, with a floating profit of 130,300 CNY during the three-day rising period [2] - GF Zhaoli Mixed A was established on September 20, 2022, with a latest scale of 64.049 million CNY, achieving a year-to-date return of 63.73% and a one-year return of 65.02% [2]

Core Viewpoint - The company is positioned as a leader in EGR and core components for new energy drive motors, with a three-pronged growth strategy focusing on EGR, new energy and precision components, and aerospace robotics [1] Group 1: Business Segments - The company has established a strong presence in EGR, serving major clients such as BYD, Chery, and Geely [1] - In the robotics sector, the company is developing harmonic reducers, tactile sensors, and dexterous hands, with a focus on advanced designs and lightweight products [2] - The harmonic reducer production capacity is expected to reach 70,000 units by Q1 2026, leveraging superior design and materials [1][2] - The company has made a strategic investment in a technology firm to develop high-performance tactile sensors, which have received international recognition [1][2] Group 2: Electric Motor Components - The electric motor components business is transitioning to semi-assembly, enhancing product value and competitiveness [2] - The company has successfully launched its first rotor and stator semi-assembly product in June 2025, following a project agreement with a major client [2][3] Group 3: New Product Launches - The new Wanjie M7 model is set to launch in September 2025, expected to significantly contribute to the company's revenue growth [2] Group 4: Strategic Partnerships and Investments - The company plans to invest approximately 200 million yuan in a new lightweight component production base in Chongqing, focusing on electric vehicle parts [3] - A strategic partnership with Galaxy Aerospace has been established to develop key precision components for commercial aerospace applications, with significant growth in project volume expected [3] Group 5: Financial Projections - Revenue forecasts for 2025-2027 are projected at 3.238 billion, 4.233 billion, and 5.342 billion yuan, with year-on-year growth rates of 35.1%, 30.7%, and 26.2% respectively [4] - Net profit estimates for the same period are 311 million, 419 million, and 513 million yuan, with growth rates of 38.4%, 34.9%, and 22.4% respectively [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is leveraging dual drivers from robotics and commercial aerospace, with comprehensive layouts in harmonic drives, dexterous hands, and sensors [1] - The company has established a three-tier growth curve focusing on EGR systems, new energy vehicle drive motors, and precision components, while actively expanding into aerospace and humanoid robotics [15] Summary by Sections Robotics: Layout of Harmonic Drives, Dexterous Hands, and Sensors - The company has strengthened its position in harmonic drives through its subsidiary, Weihan Intelligent, which focuses on precision harmonic drives and integrated joint actuators [16][19] - A strategic investment in Diedong Technology has been made to develop high-performance visual tactile sensors, which are crucial for robotic applications [29] - The dexterous hand developed by the company features a lightweight visual tactile skin, significantly enhancing performance compared to traditional sensors [35] New Energy Motor Components Business - The company has upgraded its motor core components to semi-assembly, significantly increasing product value and competitiveness [3] - The establishment of a new production base for lightweight components in Chongqing is set to enhance the company's capabilities in the new energy vehicle sector [42] Commercial Aerospace - The company has formed a strategic partnership with Galaxy Aerospace, focusing on the development of core precision components for satellite energy, communication, and control modules [50] - The business volume for satellite modules and drone projects has doubled in the first half of 2025, indicating strong growth potential [52] Financial Forecast - The company is projected to achieve revenues of 32.38 billion, 42.33 billion, and 53.42 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 35.1%, 30.7%, and 26.2% [8][56] - The net profit attributable to shareholders is expected to be 3.11 billion, 4.19 billion, and 5.13 billion yuan for the same years, with growth rates of 38.4%, 34.9%, and 22.4% respectively [8][56] Market Position - The company has successfully integrated into the supply chains of major clients in the automotive and aerospace sectors, enhancing its market presence and competitive edge [7][53] - The company’s stock is currently valued at a PE ratio of 31.6 for 2025, which is competitive compared to similar companies in the industry [56]

Core Viewpoint - The company reported a revenue of 1.224 billion yuan in the first half of 2025, representing a year-on-year increase of 15.44%, and a net profit attributable to shareholders of 105 million yuan, up 1.38% year-on-year [1] Revenue and Profit Analysis - In Q2 2025, the company achieved a revenue of 618 million yuan, which is a year-on-year increase of 25.03%, while the net profit attributable to shareholders was 46 million yuan, showing a year-on-year decrease of 9.04% [1] - The revenue from the company's new energy vehicle components, EGR and injection systems, and precision automotive parts for the first half of 2025 was 485 million, 451 million, and 287 million yuan respectively, with year-on-year growth rates of 6.05%, 27.44%, and 19.61% [2] Margin and Cost Structure - The net profit margin for Q2 2025 was 7.45%, down by 2.79 and 2.23 percentage points year-on-year and quarter-on-quarter respectively [3] - The gross margin in Q2 2025 decreased by 1.46 percentage points to 18.01% year-on-year, primarily due to increased depreciation and slower revenue growth [3] - The company maintained a good control over selling expenses, with a selling expense ratio of 0.42%, down 1.02 and 0.35 percentage points year-on-year and quarter-on-quarter respectively [3] Strategic Developments - The company is progressively clarifying its "1+3" strategic layout in humanoid robotics, with "1" referring to the self-developed "Lansen" robot and "3" to three core components: harmonic reducers, dexterous hands, and tactile sensors [4] - The company successfully developed a lightweight harmonic reducer that reduces weight by 30%-40% compared to traditional products, with an expected production capacity of approximately 70,000 units by Q1 2026 [4] Future Outlook - The company anticipates a recovery in performance in the second half of 2025, driven by volume and price increases in its main business, alongside a well-established layout in the humanoid robotics sector [5] - The profit forecast for 2025-2027 has been adjusted to 327 million, 414 million, and 482 million yuan respectively, with the current stock price corresponding to PE ratios of 30.0, 23.8, and 20.4 times [5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company's revenue for the first half of 2025 reached 1.224 billion yuan, a year-on-year increase of 15.44%, with a net profit attributable to shareholders of 105 million yuan, up 1.38% year-on-year. In Q2 2025, revenue was 618 million yuan, a year-on-year increase of 25.03%, while net profit attributable to shareholders was 46 million yuan, down 9.04% year-on-year [3][9] - The company is expected to see a recovery in performance in the second half of 2025, driven by a combination of volume and price increases in its main business, alongside a well-defined strategic layout in the humanoid robotics sector [9] Financial Performance Summary - In H1 2025, the company's revenue from various segments included 485 million yuan from new energy vehicle components, 451 million yuan from EGR and injection systems, and 287 million yuan from precision automotive parts, with year-on-year growth rates of 6.05%, 27.44%, and 19.61% respectively [5] - The company's gross profit margin in Q2 2025 was 18.01%, down 1.46 percentage points year-on-year, primarily due to increased depreciation and slower revenue growth [5][9] - The company has a projected revenue of 3.35 billion yuan for 2025, with a net profit of 327 million yuan, reflecting a growth rate of 39.7% and 45.8% respectively [7][9] Strategic Developments - The company is advancing its humanoid robotics strategy, which includes the self-developed "Lansen" robot and key components such as lightweight harmonic reducers and dexterous hands. The production capacity for harmonic reducers is expected to reach approximately 70,000 units by Q1 2026 [6][9] - The strategic investment in Dida Intelligent has enabled the company to develop the world's first high-performance tactile sensor, enhancing its competitive edge in the humanoid robotics market [6][9]

Group 1 - Longsheng Technology's stock increased by 5.31% to 45.43 CNY per share, with a trading volume of 487 million CNY and a turnover rate of 6.23%, resulting in a total market capitalization of 10.345 billion CNY [1] - Longsheng Technology, established on June 16, 2004, and listed on July 25, 2017, operates in the engine exhaust gas recirculation (EGR) system, new energy, and precision components sectors, with revenue composition of 62.71% from other segments and 37.29% from EGR products and injection systems [1] Group 2 - Dongfang Fund holds a significant position in Longsheng Technology through its fund, Dongfang High-end Manufacturing Mixed A (014699), which held 37,600 shares, accounting for 2.88% of the fund's net value, ranking as the ninth largest holding [2] - The fund, established on March 1, 2023, has a latest scale of 32.1948 million CNY, with a year-to-date return of 8.62% and a one-year return of 40.71%, ranking 3,523 out of 8,037 in its category [2] - The fund manager, Li Rui, has been in the position for 7 years and 263 days, managing assets totaling 8.065 billion CNY, with the best return during his tenure being 56.68% and the worst being -18.35% [2]

Core Viewpoint - The company reported a revenue of 1.224 billion yuan for H1 2025, representing a year-on-year increase of 15.44%, while the net profit attributable to shareholders was 105 million yuan, up 1.38% year-on-year [2] Revenue and Profit Analysis - In Q2 2025, the company achieved a revenue of 618 million yuan, a year-on-year increase of 25.03% and a quarter-on-quarter increase of 2.06% [2] - The net profit attributable to shareholders for Q2 2025 was 46 million yuan, down 9.04% year-on-year and down 21.49% quarter-on-quarter [3] - The gross profit margin for Q2 2025 was 18.01%, a decrease of 1.46 percentage points year-on-year, primarily due to changes in accounting standards and adjustments in sales expenses [3] Business Growth and Cost Management - The EGR (Exhaust Gas Recirculation) business experienced rapid growth, driven by the strong performance of leading domestic car manufacturers and breakthroughs in heavy-duty truck EGR systems [3] - The company’s sales, management, R&D, and financial expense ratios for Q2 2025 were 0.42%, 3.88%, 3.62%, and 1.56% respectively, with notable changes attributed to accounting adjustments and increased costs [3] Production and Technological Advancements - The company is accelerating its production line upgrades, particularly in the electric motor core components, which significantly enhance product value and competitiveness [4] - The establishment of a dual-path approach in "core components + complete machine R&D" is underway, focusing on both robot assembly and breakthroughs in key components like harmonic reducers [5] Investment Outlook - The company maintains a solid position as a leader in the EGR market, with a three-dimensional growth strategy encompassing traditional business, new energy initiatives, and international expansion [6] - Revenue projections for 2025-2027 are estimated at 2.898 billion yuan, 3.648 billion yuan, and 4.523 billion yuan respectively, with net profits expected to reach 253 million yuan, 339 million yuan, and 478 million yuan [8]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][6]. Core Views - The company is experiencing short-term pressure on profitability, but its EGR (Exhaust Gas Recirculation) business is growing rapidly, driven by strong demand from leading domestic car manufacturers and a breakthrough in heavy-duty truck EGR systems [2][4]. - The company is enhancing its smart manufacturing capabilities through accelerated production line upgrades, which significantly increase product value and core competitiveness [3]. - The dual-path approach of "core components + complete machine R&D" is being implemented, with a focus on both building complete robots and achieving breakthroughs in key components like harmonic reducers and joint modules [3][4]. Financial Performance Summary - For the first half of 2025, the company reported revenue of 1.224 billion yuan, a year-on-year increase of 15.44%, and a net profit attributable to shareholders of 105 million yuan, up 1.38% year-on-year [1]. - In Q2 2025, revenue reached 618 million yuan, reflecting a year-on-year growth of 25.03%, while net profit decreased by 9.04% year-on-year to 46 million yuan [1][2]. - The company's gross margin for Q2 2025 was 18.01%, down 1.46 percentage points year-on-year, primarily due to changes in accounting standards and adjustments in sales expenses [2]. Revenue and Profit Forecast - The company is projected to achieve revenues of 2.898 billion yuan in 2025, 3.648 billion yuan in 2026, and 4.523 billion yuan in 2027, with corresponding net profits of 253 million yuan, 339 million yuan, and 478 million yuan respectively [5][10]. - The earnings per share (EPS) are expected to be 1.11 yuan in 2025, 1.49 yuan in 2026, and 2.10 yuan in 2027, with price-to-earnings (PE) ratios of 39, 29, and 21 respectively [4][5].

Group 1 - The company reported a revenue of 1.224 billion yuan for H1 2025, a year-on-year increase of 15.44%, and a net profit attributable to shareholders of 105 million yuan, a slight increase of 1.38% year-on-year, indicating that overall performance met expectations [1] - The automotive parts business maintained stable growth, while the humanoid robot business, including harmonic reducers and dexterous hands, achieved multiple breakthroughs, gradually forming a dual-driven development model of "automotive + robotics" [1] - The company maintains its profit forecast, expecting net profits attributable to shareholders to be 401 million, 603 million, and 761 million yuan for 2025-2027, corresponding to current price-earnings ratios of 31.8, 23.9, and 18.0 times, respectively, and maintains a "buy" rating [1] Group 2 - In the EGR business segment, revenue reached 451 million yuan in H1 2025, a year-on-year increase of 27.44%, benefiting from the trend of hybridization in oil vehicles, with increased market share in passenger vehicles and breakthroughs in the commercial vehicle market [2] - The new energy business generated revenue of 484 million yuan, a year-on-year increase of 6.05%, with significant advancements in welding technology for thin materials and successful project acquisitions, indicating strong growth momentum [2] - The precision automotive parts segment achieved revenue of 287 million yuan, a year-on-year increase of 19.61%, with 50 small assembly projects accumulated in the first half of the year, indicating a steady release of performance as new project orders continue to be delivered [2] Group 3 - The humanoid robot business is steadily advancing, focusing on breakthroughs in core components such as dexterous hand assemblies, harmonic reducers, and joint modules [3] - The company has successfully developed a compact and lightweight harmonic reducer, reducing weight by 30%-40% compared to traditional products, and is expected to achieve a production capacity of 70,000 harmonic reducers by Q1 2026 [3] - The dexterous hand products are continuously iterating, with plans to form three product lines: military-grade, industrial-grade, and consumer-grade, alongside a strategic investment in a technology company to enhance sensor technology [3]