MTC(SZ:002429) Xin Lang Cai Jing·2025-08-24 06:33Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, primarily due to the impact of U.S. tariffs and adjustments in traditional networking business, but is actively transforming and expanding into new markets [1][4]. Group 1: Financial Performance - Total revenue for H1 2025 was 8.483 billion yuan, a year-on-year decrease of 10.89%, with net profit attributable to shareholders at 661 million yuan, down 27.37% [1]. - In Q2 2025, revenue decreased by 12.08% year-on-year, and net profit fell by 34.12% [1]. - The multimedia business generated revenue of 5.675 billion yuan, a decline of 18.2% year-on-year, largely affected by the television and networking business [1]. Group 2: Business Transformation and Growth Areas - The company is shifting production capacity to Vietnam to mitigate tariff impacts and is focusing on strengthening its LED full industry chain advantages while entering the optical communication field [1]. - The LED full industry chain generated revenue of 2.808 billion yuan, an increase of 8.7% year-on-year, with a net profit of 403 million yuan, accounting for over 60% of total profits [2]. - The optical module and component business achieved revenue of 309 million yuan, with successful mass shipments of optical access network components to major domestic clients [1][2]. Group 3: Cost and Margin Analysis - The overall gross margin for H1 2025 was 16.84%, a decrease of 0.83 percentage points year-on-year, with multimedia and LED business gross margins at 11.48% and 27.66%, respectively [3]. - The overall expense ratio increased by 2.74 percentage points year-on-year, influenced by higher leasing costs and operational leverage [3]. Group 4: Future Outlook and Valuation - The company maintains EPS forecasts of 0.35, 0.39, and 0.41 yuan for 2025-2027, with a target price adjustment to 6.30 yuan based on an 18x PE valuation for 2025 [4].