Kersen(SH:603626) Di Yi Cai Jing·2025-08-21 13:04Core Viewpoint - The company is facing a dilemma of increasing revenue without corresponding profit growth, with an expected loss of 90 million to 122 million yuan in the first half of the year [1][5]. Group 1: Stock Performance - The stock of Kosen Technology (603626.SH) experienced a strong surge, achieving a five-day consecutive limit-up, with the latest closing price reaching 13.87 yuan, marking a 60% increase over five trading days [2][3]. - The stock's rise is attributed to the hype around "consumer electronics" concepts, despite the company clarifying that its revenue from related products is less than 1% [3][4]. - The stock previously saw a 10-day limit-up due to the "foldable screen" concept, with a peak price of 14.53 yuan, reflecting a 185% increase [3]. Group 2: Financial Performance - Kosen Technology is projected to incur a net loss of 90 million to 122 million yuan in the first half of the year, with a non-recurring net profit loss estimated between 136 million to 168 million yuan [5]. - The company has experienced a decline in revenue and net profit since 2022, with revenues of 34.24 billion yuan, 25.97 billion yuan, and 33.82 billion yuan from 2022 to 2024, showing year-on-year changes of -17.44%, -24.16%, and +30.26% respectively [5]. - Despite a recovery in revenue in 2024, the net profit continued to decline, with figures of 870 million yuan, -281 million yuan, and -477 million yuan over the same period, reflecting year-on-year decreases of 76.48%, 424.29%, and 69.44% [5]. Group 3: Business Operations - The company's main business involves the research, development, manufacturing, and assembly of precision structural components, with the consumer electronics sector being a significant revenue source [3]. - In 2024, the revenue from the consumer electronics structural components business reached 25.96 billion yuan, a year-on-year increase of 30.26%, but the gross margin significantly dropped to only 0.97%, a decrease of 9.1 percentage points [5]. - Kosen Technology is attempting to diversify its business into medical and new energy sectors, but these areas contribute minimally to overall revenue, with revenues of 358 million yuan and 274 million yuan respectively in 2024 [6][7]. Group 4: Financial Health - The company reported a net cash outflow of 23.47 million yuan from operating activities in the first quarter of this year, indicating financial strain [7]. - As of the end of the first quarter of 2025, Kosen Technology had short-term loans of 857 million yuan and non-current liabilities due within one year of 367 million yuan, while cash on hand was only 370 million yuan [7]. - Accounts receivable stood at 1.143 billion yuan, accounting for 165% of revenue, highlighting potential liquidity issues [7].