Kewell(SH:688551) Xin Lang Cai Jing·2025-08-26 00:33Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, with expectations for gradual recovery in certain business segments, particularly in AI power testing equipment [1][4]. Financial Performance - In 1H25, the company generated revenue of 224 million yuan, a year-on-year decrease of 11.62%, and a net profit attributable to shareholders of 31 million yuan, down 25.90% year-on-year [1]. - For 2Q25, revenue was 117 million yuan, reflecting a year-on-year decline of 17.83% but a quarter-on-quarter increase of 9.67%. The net profit for the same quarter was 11 million yuan, down 54.91% year-on-year and 47.96% quarter-on-quarter [1]. Business Trends - The testing power business showed stable revenue of 199 million yuan in 1H25, with no significant change year-on-year due to increased product sales but intensified competition leading to price declines [2]. - The semiconductor sales experienced a recovery, with 1H25 revenue of 15 million yuan, a 90% year-on-year increase [2]. - The hydrogen energy business saw a significant decline, with 1H25 revenue of 8 million yuan, down 82% year-on-year, attributed to losses across the industry and limited new orders due to financing difficulties and insufficient government subsidies [2]. - The company is expanding into AI server power testing equipment, with a projected market space exceeding 2 billion yuan in 2025, indicating substantial growth potential [2]. Profitability and Cost Structure - The gross margin improved in 2Q25 to 44.4%, an increase of 6.8 percentage points, primarily due to reduced price competition [3]. - The expense ratios for sales, management, R&D, and finance were relatively stable in 2Q25, with slight fluctuations [3]. - The net profit margin for 2Q25 was 9.0%, a decrease of 10.0 percentage points, mainly due to significant non-recurring gains in 1Q25 [3]. Profit Forecast and Valuation - The company maintains net profit forecasts of 109 million yuan for 2025 and 170 million yuan for 2026 [4]. - The current stock price corresponds to a price-to-earnings ratio of 31.6 for 2025 and 20.3 for 2026. The target price has been raised by 67% to 50 yuan, reflecting an upside potential of 21.6% from the current stock price [4].