FUDA ALLOY(SH:603045) Zheng Quan Zhi Xing·2025-08-28 22:59Core Viewpoint - Fuda Alloy (603045) reported mixed financial results for the first half of 2025, with significant revenue growth but a decline in net profit, raising concerns about cash flow and debt levels [1][2]. Financial Performance - Total revenue for the first half of 2025 reached 2.24 billion yuan, a year-on-year increase of 33.44% compared to 1.679 billion yuan in 2024 [1]. - Net profit attributable to shareholders was 24.87 million yuan, down 31.94% from 36.54 million yuan in the previous year [1]. - The second quarter saw total revenue of 1.232 billion yuan, up 20.21% year-on-year, while net profit for the quarter was 29.99 million yuan, a slight increase of 1.16% [1]. Profitability Metrics - Gross margin decreased to 7.48%, down 23.19% from 9.74% in the previous year [1]. - Net margin fell to 1.1%, a decline of 49.67% from 2.18% [1]. - Earnings per share (EPS) dropped to 0.18 yuan, down 31.95% from 0.27 yuan [1]. Cash Flow and Debt Analysis - Operating cash flow per share was -1.25 yuan, a significant decrease of 249.03% from -0.36 yuan [1]. - The company’s cash and cash equivalents increased to 423 million yuan, a rise of 10.31% from 383 million yuan [1]. - The ratio of accounts receivable to net profit reached 1661.97%, indicating a large volume of receivables relative to profit [1][2]. Business Model and Operational Insights - The company relies heavily on research and development for its performance, necessitating a closer examination of the underlying drivers [2]. - The return on invested capital (ROIC) for the previous year was 4.95%, indicating historically low capital returns [1][2]. - The company has a high debt ratio, with interest-bearing liabilities reaching 1.536 billion yuan, an increase of 30.84% from the previous year [1].