SHUANGHUAN COMPANY(SZ:002472) Xin Lang Cai Jing·2025-08-29 15:31Core Viewpoint - The company is focusing on expanding its business in the new energy gear sector, which has become a focal point during recent investor meetings, highlighting its growth potential and strategic initiatives in this area [1]. Business Performance by Segment - The passenger vehicle gear business accounted for 63.11% of total revenue, with the new energy vehicle gear segment growing over 30% year-on-year, representing more than 43% of total revenue, although this growth rate is slightly below the overall domestic new energy vehicle market due to inventory adjustments by major clients [2]. - The traditional fuel vehicle gear business saw a decline of approximately 7% year-on-year, aligning with market expectations [2]. - The smart actuator business is expected to see good growth in the second half of the year, driven by new projects [2]. - The commercial vehicle gear business experienced a significant year-on-year decline but showed signs of recovery on a quarter-on-quarter basis, with expectations of a reduced decline for the full year [2]. Overseas Capacity and Market Expansion - The company is preparing to establish a new factory in Hungary by May 2025, with small-scale deliveries already initiated and new projects set to enter mass production [3]. Engineering Machinery Gear Business Growth - The engineering machinery gear business is stable, supported by order expansion from foreign Tier 1 clients in the domestic market [4]. New Energy Vehicle Gear Capacity and Product Launch - The capacity and demand for new energy vehicle gears continue to grow, with ongoing capacity construction and project introductions despite inventory adjustments affecting the first half of the year [5]. - The proportion of coaxial gearboxes in new energy vehicles is currently low, but this is expected to increase as several automakers launch new models in the second half of the year [5]. Future Growth Drivers - The company is focusing on gear technology as its core, with significant growth potential in the new energy vehicle gear business, supported by the Hungarian base for overseas expansion [6]. - The smart actuator business is showing notable growth, with a wide coverage area expected to drive performance [6]. Smart Actuator Gross Margin Outlook - The gross margin for smart actuators increased by 0.6 percentage points year-on-year, with further improvement potential through high-margin product introductions and operational efficiency enhancements [7]. R&D Investment and Gross Margin Variance - Differences in gross margin compared to the parent company are attributed to varying self-manufacturing rates, with R&D investments focused on high-barrier, high-profit sectors [8]. New Energy Commercial Vehicle Capacity Layout and Growth Outlook - Despite weakness in the commercial vehicle gear business, the company is concentrating on expanding the new energy electric drive gear market, having secured several benchmark projects and advancing towards mass production [9].