Orinko(SH:688219) Zheng Quan Zhi Xing·2025-08-30 23:24Core Viewpoint - The recent financial report of Huitong Co., Ltd. (688219) shows moderate growth in revenue and net profit, but raises concerns regarding high accounts receivable and declining profit margins [1][2]. Financial Performance - The total revenue for the first half of 2025 reached 3.021 billion yuan, a year-on-year increase of 10.63% [1]. - The net profit attributable to shareholders was 105 million yuan, up 10.19% year-on-year [1]. - In Q2 2025, total revenue was 1.554 billion yuan, reflecting a 6.74% increase year-on-year, while net profit was 55.527 million yuan, up 6.48% [1]. - The gross margin was 13.58%, down 1.23% year-on-year, and the net margin was 3.52%, down 3.93% year-on-year [1]. - Total expenses (selling, administrative, and financial) amounted to 200 million yuan, accounting for 6.61% of revenue, an increase of 5.04% year-on-year [1]. Key Financial Ratios - The company's return on invested capital (ROIC) was 6.08%, indicating average capital returns [2]. - The historical median ROIC since the company went public is 5.48%, with the lowest ROIC recorded in 2022 at 3.07% [1][2]. - The accounts receivable to net profit ratio stands at 819.68%, indicating a significant amount of receivables compared to profit [1][2]. Business Model and Cash Flow - The company's performance is primarily driven by research and development [2]. - Cash flow analysis shows that cash and cash equivalents to current liabilities ratio is 45.91%, and the average operating cash flow to current liabilities ratio over the past three years is 9.82% [2]. - The interest-bearing debt ratio has reached 35.54%, raising concerns about the company's debt levels [2]. Future Expectations - Analysts project that the company's performance in 2025 will yield a net profit of 245 million yuan, with an average earnings per share of 0.51 yuan [2].