SANHUA(SZ:002050) Xin Lang Cai Jing·2025-08-31 02:43Core Viewpoint - The company reported strong financial performance for H1 2025, with significant year-on-year growth in both revenue and net profit, indicating a positive outlook for its core businesses and global expansion strategy [1][2][4]. Revenue Analysis - In Q2 2025, the company achieved revenue of 8.59 billion yuan, representing a year-on-year increase of 18.7%, driven by strong performance in refrigeration parts and automotive components [1][3]. - Refrigeration parts contributed approximately 5.4 billion yuan in Q2 revenue, with a year-on-year growth of 23%, benefiting from domestic demand and global expansion efforts [3]. - Automotive components generated around 3.2 billion yuan in Q2 revenue, showing a recovery with a year-on-year increase of 12%, primarily from key clients like Xiaomi and Geely [3]. Profitability Analysis - The company’s gross margin improved by 0.7 percentage points year-on-year in H1, with both refrigeration and automotive components contributing to this increase [4]. - In Q2, the net profit margin rose by 2.1 percentage points year-on-year, reflecting effective cost management and operational efficiency [4]. - The company’s strategic focus on cost reduction and efficiency enhancement is evident, with reductions in sales, management, and R&D expenses [4]. Investment Recommendations - The company maintains a "buy" rating, supported by its upward trend in core businesses and competitive advantages from global expansion [5]. - Revenue projections for 2025-2027 are estimated at 32.38 billion, 37.17 billion, and 43.20 billion yuan, with corresponding net profits of 3.97 billion, 4.56 billion, and 5.20 billion yuan, indicating robust growth [5].