SMHC(SH:600131) Xin Lang Cai Jing·2025-08-29 06:33Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but its overall profitability improved due to strong performance from key subsidiaries and increased gross margin [1][3]. Financial Performance - In the first half of 2025, the company achieved revenue of 3.525 billion yuan, a year-on-year decrease of 4.55% (adjusted), and a net profit of 266 million yuan, down 11.01% (adjusted) [1]. - For Q2 2025, revenue was 2.413 billion yuan, a year-on-year decline of 9.77% (adjusted), with a net profit of 240 million yuan, down 16.42% (adjusted) [1]. - The overall gross margin improved, with figures of 20.02%, 20.27%, and 22.13% for the first half of 2024, second half of 2024, and first half of 2025, respectively [1]. Subsidiary Performance - Key subsidiaries contributed significantly to revenue, with the following figures: Zhongdian Puhua (800 million yuan, 22.71%), Jiyuan Software (730 million yuan, 20.71%), Zhongdian Feihua (998 million yuan, 28.31%), Zhongdian Qimingxing (236 million yuan, 6.68%), and Yili Technology (811 million yuan, 23.00%) [1]. - The net profit margins for these subsidiaries were 8.17%, 0.70%, 6.15%, 1.89%, and 7.42%, respectively, leading to a total revenue contribution of 74.02% from high-profitability subsidiaries [1]. Market Position and Contracts - The company secured over 90% of the market share in the National Grid communication equipment procurement, with significant contracts awarded in May and July 2025 totaling 803 million yuan [2]. - In the second batch of procurement, Jiyuan Software and Zhongdian Feihua won contracts worth 477 million yuan (55.41%), while Yili Technology won 326 million yuan (37.84%) [2]. - In the third batch, the total contracts awarded to the same subsidiaries amounted to 966 million yuan, representing 90.70% of the procurement [2]. R&D and Strategic Focus - The company increased its R&D investment to approximately 482 million yuan in the first half of 2025, resulting in 61 patent authorizations and 65 published scientific papers [3]. - The company is focusing on strategic development and collaboration to enhance its production capabilities and technological innovation [3]. Profit Forecast and Valuation - The profit forecast for 2025-2027 has been revised down to 844 million yuan, 1.025 billion yuan, and 1.253 billion yuan, respectively, with corresponding EPS of 0.70, 0.85, and 1.04 yuan [3]. - The company is expected to maintain a stable performance due to its position as a key subsidiary of the National Grid and the resolution of industry competition issues [3].