AHB(SH:688639) Zheng Quan Zhi Xing·2025-08-28 22:59Core Viewpoint - Huaheng Biological (688639) reported mixed financial results for the first half of 2025, with significant revenue growth but a decline in net profit, indicating potential challenges in profitability and cash flow management [1][3]. Financial Performance - Total revenue for the first half of 2025 reached 1.489 billion yuan, a year-on-year increase of 46.54% compared to 1.016 billion yuan in 2024 [1]. - Net profit attributable to shareholders was 115 million yuan, down 23.26% from 150 million yuan in the previous year [1]. - In Q2 2025, total revenue was 802 million yuan, reflecting a 55.61% increase year-on-year, while net profit for the quarter was 63.8 million yuan, up 1.05% [1]. - The gross margin decreased to 24.11%, down 23.71% year-on-year, and the net margin fell to 7.33%, a decline of 49.67% [1]. - Total expenses (selling, administrative, and financial) amounted to 154 million yuan, accounting for 10.34% of revenue, a slight decrease of 0.99% year-on-year [1]. Balance Sheet and Cash Flow - Accounts receivable increased to 308 million yuan, representing a 13.69% rise, and accounted for 162.37% of the net profit, indicating potential liquidity issues [1][3]. - Cash and cash equivalents decreased to 379 million yuan, down 3.63% from the previous year [1]. - The company reported a significant decline in operating cash flow per share to 0.3 yuan, a decrease of 43.17% [1]. Investment and Market Position - The company's return on invested capital (ROIC) was 6.08%, indicating average capital returns, with a historical median ROIC of 22.6% since its listing [3]. - Analysts project a net profit of 286 million yuan for 2025, with an average earnings per share estimate of 1.14 yuan [3]. Fund Holdings - The largest fund holding Huaheng Biological is the Jiao Yin Advanced Manufacturing Mixed A fund, with 8.15 million shares held, remaining unchanged [4]. - Other funds have also shown interest, with some increasing their positions in the company [4].