AVIC Jianghang(SH:688586) Zheng Quan Zhi Xing·2025-08-30 23:27Core Viewpoint - Jianghang Equipment (688586) reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit compared to the previous year [1]. Financial Performance - Total revenue for the first half of 2025 was 472 million yuan, a decrease of 20.4% year-on-year [1]. - Net profit attributable to shareholders was 36.6 million yuan, down 64.86% year-on-year [1]. - In Q2 2025, total revenue was 262 million yuan, a decline of 7.81% year-on-year, while net profit was 16.6 million yuan, down 61.7% year-on-year [1]. - The gross profit margin was 28.7%, a decrease of 23.14% year-on-year, and the net profit margin was 7.76%, down 55.86% year-on-year [1]. - The company’s accounts receivable increased by 33.78% year-on-year, reaching 1.206 billion yuan [1]. Key Financial Ratios - The company’s return on invested capital (ROIC) was 4.56%, indicating weak capital returns [3]. - The historical median ROIC since the company’s listing is 9.78%, with a notable low of 0.51% in 2016 [3]. - The average operating cash flow over the past three years is only 16.38% of current liabilities, suggesting potential liquidity concerns [3]. Business Model and Operations - The company relies heavily on research and development for its business performance [3]. - Major products in the aviation equipment sector include oxygen systems, fuel tank inerting systems, and ground oxygen equipment, primarily serving domestic military and civil aviation needs [4]. Shareholder Information - The largest fund holding Jianghang Equipment is the Jianxin CSI 1000 Index Enhanced A, which has reduced its holdings [4]. - The fund's recent performance shows a net asset value increase of 0.29% on the last trading day, with a 73.45% increase over the past year [4].