StarPower(SH:603290) Xin Lang Cai Jing·2025-08-31 12:33Core Viewpoint - The company reported strong revenue growth driven by its new energy business, with expectations for continued high growth in the second half of the year [1][2]. Financial Performance - For H1 2025, the company achieved revenue of 1.936 billion, a year-on-year increase of 26.25%, and a net profit of 275 million, with a slight increase of 0.26% [1]. - In Q2 2025, revenue reached 1.016 billion, reflecting a year-on-year growth of 39.55% and a quarter-on-quarter increase of 10.57%. Net profit for the quarter was 172 million, showing a year-on-year increase of 53.15% and a quarter-on-quarter increase of 65.61% [1]. - The gross margin and net margin for H1 were 29.74% and 14.42%, respectively, while for Q2, they were 29.16% and 17.14% [1]. Business Segments - The new energy sector was the main driver of H1 performance, generating revenue of 1.213 billion, a year-on-year increase of 52.82%. The company's electric vehicle business benefited from a 40% increase in domestic sales, leading to a 25.80% revenue growth [2]. - The wind and solar storage business saw revenue growth exceeding 200% due to a 99.3% increase in photovoltaic installations [2]. - The industrial control business is expected to remain under pressure due to a decline in PMI [2]. Future Outlook - The company anticipates continued high growth in the second half of the year, projecting revenue of approximately 2.4 billion, a year-on-year increase of nearly 30% [2]. - The company’s gross margin is expected to remain at similar levels to Q2, with an annual gross margin forecast of 29.5%, a decline of 2.1 percentage points compared to 2024 [2]. - The net margin is expected to stabilize around 15% for the year, with an estimated annual net profit of 643 million [3]. Valuation - The projected net profits for 2025 and 2026 are 643 million and 784 million, respectively, corresponding to price-to-earnings ratios of 40x and 33x, leading to a recommendation of "accumulate" [4].