Zheng Quan Zhi Xing·2025-08-29 04:33Core Viewpoint - The report highlights the steady growth of Zhao Wei Electromechanical (兆威机电) in the first half of 2025, with a focus on the successful launch of new robotic hand products and a strong performance in domestic operations [1][4]. Financial Performance - In the first half of 2025, the company achieved revenue of 787 million yuan, a year-on-year increase of 21.93%, and a net profit attributable to shareholders of 113 million yuan, up 20.72% year-on-year [1]. - The company's revenue from micro drive systems was 498 million yuan, up 20.51% year-on-year, while precision injection parts generated 239 million yuan, an increase of 16.25% year-on-year. The precision molds and other segments saw a remarkable growth of 88.52%, reaching 50 million yuan [1]. - Domestic revenue reached 693 million yuan, a significant increase of 30.91% year-on-year, while overseas revenue was 94 million yuan, down 19.16% [1]. Profitability Metrics - The gross margin for the first half of 2025 was 31.97%, an increase of 0.74 percentage points year-on-year, driven by a higher proportion of high-margin precision parts [2]. - The net profit margin was 14.40%, slightly down by 0.14 percentage points year-on-year, primarily due to reduced investment income [2]. - The company maintained a research and development expense of 81 million yuan, reflecting a commitment to innovation despite a slight optimization in expense ratios [2]. Inventory and Cash Flow - As of the end of the first half of 2025, the company's inventory stood at 216 million yuan, a 17.22% increase from the beginning of the year, mainly due to increased raw material and work-in-progress stock [3]. - The net cash flow from operating activities was 47 million yuan, a decline of 29.52% year-on-year, indicating some pressure on cash flow [3]. Product Development - On July 15, 2025, the company launched its new DM series and LM series robotic hands, showcasing advanced features such as self-locking capabilities and high integration for compact design [4]. - The DM series includes a 17-degree-of-freedom direct-drive robotic hand, while the LM series features a 6-degree-of-freedom under-actuated design, both utilizing proprietary technologies [4]. Investment Outlook - The company maintains profit forecasts for 2025-2027 at 270 million, 332 million, and 415 million yuan respectively, with corresponding dynamic price-to-earnings ratios of 108, 88, and 70 times [4]. - Given the company's strategic positioning in the humanoid robotics sector, an "accumulate" rating is upheld [4].