Xin Lang Cai Jing·2025-08-28 12:41Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, indicating challenges in profitability and operational efficiency [1][2][3]. Financial Performance - In H1 2025, the company achieved revenue of 987 million yuan, a year-on-year decrease of 2.0%, and a net profit attributable to shareholders of 61 million yuan, down 35.2% year-on-year [1]. - The Q2 2025 revenue was 474 million yuan, with year-on-year and quarter-on-quarter declines of 5.75% and 7.42%, respectively [1]. - The net profit for Q2 2025 was 20 million yuan, reflecting a significant drop of 56.22% year-on-year and 49.20% quarter-on-quarter [1]. - The company's net profit margin for H1 2025 was 6.1%, down 3.2 percentage points year-on-year, while the gross profit margin was 24.52%, up 0.1 percentage points [1]. Product Segment Performance - Revenue from gear shaft products was 725 million yuan, a decrease of 1.26% year-on-year, with a gross margin of 22.67%, down 1.13 percentage points [2]. - Revenue from assembly products was 223 million yuan, down 3.84% year-on-year, with a gross margin of 24.49%, down 0.34 percentage points [2]. Strategic Developments - The company is advancing its global expansion with the imminent production launch of its Thailand factory, which has completed initial sample deliveries and is expected to ramp up production in Q3 2025 [2]. - The establishment of a subsidiary in Lyon, France, aims to enhance market penetration in the French market [2]. - The company is progressing in the development of robotic reducers, with R&D efforts starting in H2 2023 and samples expected by November 2024 [2]. Dividend Distribution - The company plans to distribute a cash dividend of 0.35 yuan per share (before tax), totaling 20.15 million yuan, which represents 33.25% of the net profit attributable to shareholders for H1 2025 [2]. Profit Forecast and Investment Rating - Due to intense industry competition and a decline in performance, the company has revised its net profit forecasts for 2025-2027 to 189 million, 237 million, and 298 million yuan, respectively [3]. - The current market valuation corresponds to a PE ratio of 43, 34, and 27 for 2025-2027, but the company maintains a "buy" rating due to upcoming production phases and the potential impact of new projects [3].