HUAMING(SZ:002270) Chang Jiang Shang Bao·2025-08-11 02:44Core Viewpoint - Huaming Equipment (002270.SZ) has shown steady improvement in profitability, achieving record high performance in the first half of 2025, with significant growth in both revenue and net profit [2][4]. Financial Performance - In the first half of 2025, Huaming Equipment reported revenue of 1.121 billion yuan, a year-on-year increase of 0.04%, and a net profit of 368 million yuan, up 17.17% [4]. - The company's net profit excluding non-recurring items reached 361 million yuan, reflecting a growth of 22.76% [4]. - The company has maintained a continuous increase in revenue and net profit for six and a half years [4]. - The overall gross margin for the company in the first half of 2025 was 55.49%, an increase of 7.73 percentage points year-on-year [4]. Business Segments - Huaming Equipment's core business includes power equipment, power engineering, and CNC machine tools, with power equipment being the primary focus [3][6]. - Revenue from power equipment, CNC equipment, and power engineering for the first half of 2025 was 959 million yuan, 111 million yuan, and 23.86 million yuan, respectively, with year-on-year changes of 15.29%, 41.49%, and -87.10% [6]. - The gross margins for power equipment, CNC equipment, and power engineering were 60.48%, 22.33%, and 11.13%, respectively, showing increases across all segments [6]. Market Performance - The company has a strong market position, being the leading player in the domestic market and the second globally in its niche [3]. - In the first half of 2025, domestic revenue was 648 million yuan, a 5% increase, while international revenue reached 208 million yuan, a 42.70% increase [7]. - The international gross margin was higher than the domestic margin, indicating successful overseas expansion [7]. Shareholder Returns - Huaming Equipment has initiated a share buyback program, repurchasing 13.82 million shares, which is 1.54% of the total share capital, for a total amount of 221 million yuan [4]. - The company proposed a cash dividend of 2.0 yuan per 10 shares, amounting to 176 million yuan, which represents 47.89% of the net profit for the period [4][5]. R&D Investment - The company has increased its R&D expenditure by 23.47% in the first half of 2025, reaching 38.52 million yuan, with a R&D expense ratio of 3.44% [6][7].