Core Viewpoint - Company Innovation Qizhi (02121) is experiencing a steady recovery in performance, leading to an upward revision of revenue expectations for 2025E/2026E by 12.2%/19.6% to 1.47 billion/1.73 billion yuan, and an increase in adjusted net profit estimates for the same years, maintaining an outperform rating in the industry [1] Group 1: Revenue Growth and Strategic Focus - The company reported a strong revenue reversal, with management indicating a strategic shift from defense to offense in 2025, expecting revenue growth to resume with a projected 22.3% increase in 1H25 compared to a -38.11% decline in 1H24 [2] - Revenue from the manufacturing sector in 1H25 increased by 27.0% year-on-year to 556 million yuan, accounting for 79.5% of total revenue, up 3.0 percentage points year-on-year [2] - Breakdown by sub-industry shows significant recovery in manufacturing, with revenues from energy and power, automotive equipment, food and beverage, and 3C high-tech sectors growing by 48.5%, 12.1%, 14.8%, and 34.6% respectively [2] Group 2: Profitability and Cash Flow Improvement - The company's gross margin in 1H25 was 35.0%, an increase of 1.2 percentage points year-on-year, reflecting improved delivery efficiency and cost control [3] - Research and development expenses rose by 11.2% year-on-year to 165 million yuan, primarily due to business expansion [3] - The company improved its accounts receivable collection, reducing the average collection period to 122 days, a decrease of 52 days year-on-year, resulting in a positive cash flow of 840,000 yuan in 1H25, a turnaround from a negative cash flow of 26 million yuan in 1H24 [3] Group 3: Industrial AI and Confidence in Development - In the industrial sector, the company launched the AEAM industrial equipment intelligent management software and partnered with KUKA Robotics in June 2025 to promote new industrialization [4] - The company collaborated with Qingtian Intelligent to develop embodied intelligent robots for industrial applications and obtained two invention patents in August [4] - A share buyback announcement of 100 million yuan was made in May 2025, using the company's own funds for cancellation or treasury stock, demonstrating confidence in future development [4]
中金：维持创新奇智(02121)跑赢行业评级 上调目标价至8.5港元