HCSC(SH:600378) Zheng Quan Zhi Xing·2025-08-30 23:26Core Viewpoint - The recent financial report of Haohua Technology (600378) shows strong growth in revenue and net profit for the first half of 2025, indicating a positive performance trend despite some concerns regarding accounts receivable and cash flow [1][3]. Financial Performance - The total revenue for the first half of 2025 reached 7.76 billion yuan, a year-on-year increase of 19.45% compared to 6.496 billion yuan in 2024 [1]. - The net profit attributable to shareholders was 645 million yuan, up 20.85% from 533 million yuan in the previous year [1]. - In Q2 2025, total revenue was 4.603 billion yuan, reflecting a 26.07% increase year-on-year [1]. - The net profit for Q2 2025 was 460 million yuan, a rise of 25.56% compared to the same quarter last year [1]. - The gross margin was 23.53%, a slight decrease of 1.42% from the previous year, while the net margin improved to 9.35%, an increase of 8.56% [1]. Accounts Receivable and Cash Flow - Accounts receivable increased significantly, with a year-on-year growth of 60.83%, reaching 3.615 billion yuan [1]. - The cash flow situation showed improvement, with operating cash flow per share rising to 0.21 yuan, a substantial increase of 136% [1]. Cost Management - Total selling, administrative, and financial expenses amounted to 652 million yuan, which is 8.4% of revenue, down 13.97% year-on-year [1]. - The company’s net asset per share increased by 42.91% to 13.5 yuan [1]. Investment Insights - The company’s return on invested capital (ROIC) was reported at 6.24%, indicating average capital returns [3]. - The historical data shows a median ROIC of 9.16% over the past decade, with two years of losses since its IPO, suggesting a relatively fragile business model [3]. Fund Holdings - Haohua Technology is held by several funds, with the largest being Huaxia Military Safety Mixed A, which has increased its holdings [6]. - The fund manager of Huaxia Military Safety Mixed A has demonstrated strong stock-picking abilities, particularly in growth stocks [5].