LZJT(SZ:300428) Xin Lang Cai Jing·2025-08-27 02:42Core Viewpoint - The company reported strong financial performance in 1H25, with revenue and net profit growth driven by overseas business expansion and favorable exchange rate effects [1][3]. Financial Performance - In 1H25, the company achieved revenue of 14.443 billion yuan, a year-on-year increase of 15.4%, and a net profit attributable to shareholders of 401 million yuan, up 5.0% year-on-year [1]. - For 2Q25, revenue reached 7.260 billion yuan, reflecting a quarter-on-quarter increase of 10.9% and a year-on-year increase of 1.1%. Net profit for the same period was 239 million yuan, with a significant quarter-on-quarter increase of 121.7% and a year-on-year increase of 47.8% [1]. - The growth in 2Q25 was better than expected, primarily due to exchange rate gains [1]. Business Development Trends - The release of domestic and international production capacity supported the revenue growth in 2Q25. Revenue from various segments in 1H25 included 7.871 billion yuan from aluminum alloy casting, 4.799 billion yuan from aluminum alloy wheels, and 1.128 billion yuan from intermediate alloys, with year-on-year growth rates of 15.2%, 13.8%, and 16.0% respectively [2]. - The company noted that the revenue growth of aluminum alloy wheels was slightly below expectations due to the impact of tariffs in North America, which affected production capacity release [2]. - Domestic revenue was 10.75 billion yuan, up 13.6% year-on-year, while overseas revenue was 3.69 billion yuan, up 21.12% year-on-year, indicating strong growth in overseas markets [2]. Profitability and Globalization - The gross margin for 2Q25 was 9.6%, with a year-on-year decrease of 0.5 percentage points but an increase of 0.8 percentage points quarter-on-quarter. The net margin was 3.3%, reflecting a quarter-on-quarter increase of 1.6 percentage points and a year-on-year increase of 1.0 percentage points [3]. - The improvement in profitability was attributed to faster revenue growth in overseas markets, where the gross margin for wheel products (15.87%) was higher than that for domestic products (6.94%) [3]. - The stabilization and appreciation of the Mexican peso contributed to exchange rate gains exceeding 100 million yuan in 2Q25, leading to a decrease in financial expense ratio [3]. R&D and New Industry Layout - The company is advancing research in aluminum alloy materials, focusing on applications in new energy vehicles, robotics, and aerospace [4]. - Key developments include heat-treated alloys for one-piece die-casting in electric vehicles, and new materials for semiconductor packaging and components [4]. Profit Forecast and Valuation - The company maintains profit forecasts of 860 million yuan and 1.111 billion yuan for 2025 and 2026, respectively. The current stock price corresponds to a P/E ratio of 14.8x for 2025 and 11.5x for 2026, with a target price of 21 yuan, indicating a potential upside of 5.3% from the current price [5].