Xin Lang Cai Jing·2025-08-26 12:40Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, with expectations for a weak recovery in the North American market in the second half of the year [1][4]. Financial Performance - In 1H25, revenue decreased by 8.9% year-on-year to 9.75 billion yuan, and net profit attributable to shareholders fell by 28.5% to 400 million yuan, with non-recurring net profit down 30.2% to 380 million yuan [1]. - For 2Q25, revenue was 5.16 billion yuan, reflecting a 6.9% decline year-on-year but a 12.4% increase quarter-on-quarter. Net profit was 220 million yuan, down 24.8% year-on-year but up 25.4% quarter-on-quarter [1]. Business Segment Analysis - Domestic business revenue slightly decreased by 0.3% to 4.39 billion yuan, with a gross margin increase of 3.1 percentage points to 12.9% due to improved operational efficiency [2]. - North American business revenue fell by 30.5% to 2.56 billion yuan, with a gross margin decline of 5.1 percentage points to 13.1%, impacted by weak industry demand and tariff uncertainties [2]. - European business revenue increased by 0.5% to 1.31 billion yuan, but gross margin decreased by 2.6 percentage points to 14.9% due to capacity ramp-up challenges [2]. - Other regions saw a revenue increase of 14.0% to 1.50 billion yuan, with a gross margin rise of 4.7 percentage points to 24.6%, driven by strategic expansion in emerging markets [2]. Strategic Initiatives - The company is focusing on the development of new energy vehicles, delivering over 4,700 units of EV·DTB products in 1H25, and is leading in market share for electric heavy-duty trucks [3]. - Plans are in place to develop the EV-RT2.0 electric head truck, targeting short-distance, heavy-load scenarios for product development and validation [3]. Market Outlook - A weak recovery in the North American market is anticipated in 2H25, supported by potential easing of tariff policies and seasonal demand increases [3]. - Domestic policies promoting vehicle upgrades are expected to boost sales in the heavy truck and semi-trailer sectors, alongside strong investment demand in emerging markets like Africa and Southeast Asia [3]. Profit Forecast and Valuation - Due to ongoing low demand in the North American semi-trailer market, profit forecasts for 2025 and 2026 have been revised down by 21.7% and 16.4% to 1.11 billion yuan and 1.42 billion yuan, respectively [4]. - The current stock price corresponds to P/E ratios of 15.2 and 11.9 for 2025 and 2026, with a target price of 11.33 yuan, indicating a potential upside of 26.2% [4].