Core Viewpoint - CICC maintains the net profit forecast for Weisheng Holdings (03393) at 916 million and 1.136 billion yuan for 2025 and 2026, respectively, with the current stock price corresponding to 9.5x and 7.6x P/E for 2025 and 2026 estimates. The target price is raised by 22% to 12 HKD, indicating a 25% upside potential from the current stock price [1] Group 1: Financial Performance - In 1H25, the company achieved total revenue of 4.39 billion yuan, a year-on-year increase of 17.3%, with net profit attributable to shareholders reaching 440 million yuan, up 32.8% year-on-year, exceeding CICC's expectations [2] - Revenue from electric AMI grew by 29.8% to 1.88 billion yuan, while communication AMI revenue increased by 12.8% to 1.3 billion yuan, and distribution ADO revenue rose by 6.1% to 1.21 billion yuan [2] Group 2: Overseas Revenue and Orders - The company's overseas revenue in 1H25 increased by 19.1% to 1.24 billion yuan, accounting for 28.3% of total revenue. By region, revenue from the Americas grew by 26.0% to 680 million yuan, Asia by 76.2% to 290 million yuan, Europe by 834% to 40 million yuan, while Africa decreased by 30.5% to 230 million yuan [3] - New overseas orders signed in 1H25 rose by 22.9% to 2.13 billion yuan, with the backlog of orders as of June 30 increasing by 28% to 3.61 billion yuan [3] Group 3: Profitability and Cost Control - The company's gross margin in 1H25 was 35.1%, a decrease of 0.4 percentage points year-on-year. The electric AMI gross margin fell by 2.4 percentage points to 37.8%, while communication AMI gross margin increased by 0.8 percentage points to 39.2% [4] - The net profit margin for 1H25 was 10.0%, an increase of 1.2 percentage points year-on-year, with the expense ratio decreasing by 1.6 percentage points to 21.2% [4] Group 4: Growth Opportunities - The company’s new factory in Hungary has entered normal delivery operations, and new factories in Indonesia and Malaysia have officially commenced operations, which is expected to enhance order growth in Europe and Asia [5] - The company is actively expanding its product offerings overseas, achieving significant market breakthroughs in North America and South America, and has established deep collaborations in the data center sector with major partners [5]
中金：维持威胜控股跑赢行业评级 上调目标价至12港元