Core Viewpoint - CICC has lowered the EPS forecast for QuanFeng Holdings (02285) for 2025 by 9.5% to $0.28, while introducing a 2026 EPS of $0.30, maintaining a target price of HKD 27, indicating a 20% upside potential [1] Group 1: Financial Performance - In 1H25, the company reported revenue of $912 million, an increase of 11.9% year-on-year, and a net profit attributable to shareholders of $95 million, up 54.8% year-on-year, aligning with CICC's expectations [1] - The company's OPE business achieved revenue of $602 million in 1H25, a year-on-year growth of 22.8%, primarily driven by revenue growth from EGO products [2] - The overall gross margin increased by 0.4 percentage points to 33.3% in 1H25, attributed to a higher proportion of high-margin EGO products, a decrease in raw material costs, and an increase in sales prices [2] Group 2: Profitability Metrics - The company's expense ratios remained stable, with a slight increase in the selling and financial expense ratios to 14.2% and 0.3%, respectively, while the R&D expense ratio decreased to 4.4% [3] - The net profit margin attributable to shareholders increased by 2.9 percentage points to 10.4% in 1H25, with a 23.4% year-on-year growth in net profit when excluding one-time gains from divesting the automotive stake [3] Group 3: Market Position and Product Development - EGO brand market share continues to grow, with over 100 new products launched in 1H25, including high-demand items like push mowers and snow throwers, solidifying its position in the North American lithium battery OPE market [4] - The company has established itself as the largest single battery OPE platform globally with its 56V battery platform, showing strong sales momentum [4] Group 4: Industry Outlook - The company is closely monitoring the impact of potential interest rate cuts in the U.S. on lithium battery OPE consumer demand, with a 92% probability of rate cuts indicated by CME futures [5] - The company is expected to outperform the industry due to increased electrification penetration in the OPE sector, leveraging its product advantages to enhance market share [5]
中金：维持泉峰控股(02285)跑赢行业评级 目标价27港元