XUSHENG(SH:603305) Xin Lang Cai Jing·2025-08-28 08:43Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but showed signs of stabilization and growth in its core business and energy storage segment [1][2][3]. Financial Performance - In 1H25, the company achieved revenue of 2.096 billion yuan, a year-on-year decrease of 2.5%; net profit attributable to shareholders was 201 million yuan, down 24.2%; and non-GAAP net profit was 177 million yuan, down 25.7% [1]. - For 2Q25, revenue was 1.05 billion yuan, with a quarter-on-quarter increase of 3.9% and a year-on-year increase of 0.3%; net profit was 105 million yuan, with a quarter-on-quarter decrease of 2.4% but a year-on-year increase of 9.8% [1][3]. Business Trends - Tesla's fluctuating sales impacted revenue, while the energy storage business experienced significant growth, generating approximately 300 million yuan in 1H25, a substantial year-on-year increase [3]. - The company diversified its client base, with new energy vehicle manufacturers like BYD, Li Auto, and others increasing their orders [3]. Profitability and Cost Management - The gross margin for 2Q25 was 22.7%, showing a quarter-on-quarter improvement of 1.1 percentage points; net margin was 10.0%, with a slight quarter-on-quarter decrease of 0.6 percentage points [4]. - The company reported a foreign exchange gain that contributed approximately 26.6 million yuan to profits, while it recognized asset impairment losses of about 12.7 million yuan due to the cancellation of its aluminum bottle business [4]. Global Expansion and New Growth Areas - The company accelerated its globalization efforts, with a factory in Mexico starting operations in June 2025 and a new facility in Thailand beginning construction in July 2025 [5]. - New business developments include investments in robotics and magnesium alloy components, with successful applications in both automotive and robotics sectors [5]. Earnings Forecast and Valuation - The earnings forecast for 2025 was revised down by 5.0% to 500 million yuan, while the 2026 forecast remains at 640 million yuan [6]. - The current stock price corresponds to a P/E ratio of 27.3x for 2025 and 21.6x for 2026, with a target price of 18.3 yuan, indicating a potential upside of 26.9% from the current price [6].