BROS(SH:601339) Xin Lang Cai Jing·2025-08-17 04:24Core Viewpoint - The company experienced a decline in revenue but a significant increase in net profit due to improved profit margins from lower raw material prices and higher capacity utilization [1][2][4]. Financial Performance - In H1 2025, the company's revenue was 3.591 billion, a year-on-year decrease of 9.99%, while net profit reached 390 million, an increase of 67.53% [2]. - In Q2 2025, revenue was 1.860 billion, down 13.70%, with net profit at 217 million, up 42.03% [2]. - The company declared an interim dividend of 0.15 per share, accounting for 57.67% of H1 net profit [2]. Profitability and Margins - H1 2025 gross margin improved by 5.20 percentage points to 15.20%, with net margin increasing by 5.03 percentage points to 10.86% [3]. - Q2 2025 gross margin rose by 2.01 percentage points to 15.51%, driven by lower raw material prices and increased factory utilization [3]. Operational Insights - The Vietnamese subsidiary contributed significantly to revenue, accounting for 79% of total income in H1 2025, with a net profit of 304 million, up 39.19% [2]. - The company faced a decrease in cash flow from operating activities, down 95.57% to 39.23 million, due to reduced sales and increased raw material purchases [3]. Future Outlook - Revenue projections for 2025-2027 are 8.191 billion, 8.735 billion, and 9.290 billion, with expected growth rates of 3%, 7%, and 6% respectively [4]. - Net profit forecasts for the same period are 673 million, 746 million, and 823 million, reflecting year-on-year growth of 64%, 11%, and 10% [4]. - The current market valuation corresponds to a PE ratio of 12.5X for 2025 and 11X for 2026, with a high dividend payout ratio of 95% for 2024 [4].