Ge Long Hui·2025-08-26 10:55Core Viewpoint - The company reported its 1H25 performance, which met market expectations with a revenue of 12.214 billion yuan, a year-on-year increase of 17.95%, and a net profit attributable to shareholders of 1.672 billion yuan, up 12.93% year-on-year [1] Financial Performance - 1H25 revenue reached 12.214 billion yuan, with a net profit of 1.672 billion yuan and a non-recurring net profit of 1.588 billion yuan, showing a year-on-year increase of 37.04% [1] - In 2Q25, the company achieved a revenue of 7.677 billion yuan, a year-on-year increase of 19.88%, and a net profit of 1.040 billion yuan, up 12.63% year-on-year [1] - The gross margin improved significantly in 2Q25, reaching 31.13%, an increase of 4.78 percentage points year-on-year, primarily due to the improvement in the gross margin of rail transit equipment and emerging equipment businesses [1] - Operating cash flow was 1.825 billion yuan, reflecting a year-on-year increase of 58.33% [1] Segment Performance - Rail transit equipment business generated revenue of 6.910 billion yuan in 1H25, a year-on-year increase of 12.58%, with the electrical equipment segment contributing 5.515 billion yuan, up 11.48% [2] - Emerging equipment business revenue was 5.244 billion yuan, a year-on-year increase of 25.88%, with significant growth in new energy generation revenue, which rose by 42.94% to 1.047 billion yuan [2] - The company is advancing its power semiconductor projects and has received its first EROV order in the marine engineering equipment sector [2] Profit Forecast and Valuation - The company maintains its profit forecasts for 2025 and 2026, with the current stock price corresponding to 11.4 times and 10.3 times the earnings for 2025 and 2026, respectively [3] - The target price has been raised by 20.4% to 44.00 HKD, reflecting a potential upside of 12.6% from the current stock price [3]