Hexing(SH:603556) Xin Lang Cai Jing·2025-08-20 10:29Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, primarily due to project delays, fluctuating overseas demand, and increased counter-cyclical investments leading to higher expenses [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 1.924 billion yuan, a year-on-year decrease of 14.67% - The net profit attributable to shareholders was 396 million yuan, down 25.74% year-on-year - For Q2 2025, the company reported revenue of 1.139 billion yuan and a net profit of 255 million yuan, reflecting declines of 15.79% and 20.16% respectively [1][2]. Market Expansion and Business Development - The company is actively expanding its smart power distribution and utilization business, with accelerated development in the renewable energy sector - The South African smart ultrasonic water meter factory commenced operations, marking a significant step in localizing the company's smart water business in Africa - The company secured large-scale bids for its self-owned distribution network products in Asia, Africa, and Latin America, and successfully won transformer orders in Central Asia and Africa - The launch of the "Orca" platform 10.0 version, integrating edge computing, AI, and digital twin technology, enhances system performance and competitiveness in overseas solutions, showcasing the company's technological leadership in the smart grid sector [3]. Shareholder Returns and Capital Management - The company continues to prioritize shareholder returns through cash dividends and share buybacks - In the reporting period, the total cash dividend amounted to 338 million yuan, maintaining a nine-year consecutive cash dividend record since 2016, with cumulative dividends of approximately 2.306 billion yuan - A share buyback plan was initiated, with a proposed buyback amount of 100 to 200 million yuan for employee stock ownership or equity incentives, and approximately 3.75 million shares have been repurchased by the end of June 2025 [4]. Profit Forecast and Investment Rating - The company's smart power distribution business has established a complete industrial chain and sales channels overseas, while the renewable energy business is being developed - Short-term impacts on performance are expected due to rising channel costs in the renewable energy sector and fluctuating overseas demand, but the synergy between the power distribution and renewable energy businesses is anticipated to boost profitability in the medium to long term - The profit forecasts for 2025-2027 have been revised down to 870 million, 1.027 billion, and 1.243 billion yuan respectively, with the current stock price corresponding to a PE ratio of 16, 13, and 11 times for 2025-2027, indicating a growth trend in global power distribution products [4].