RUNNER(SH:603408) Xin Lang Cai Jing·2025-10-10 10:25Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but managed to maintain a slight increase in gross margin due to cost improvements and technological innovations [1][2]. Financial Performance - In Q2 2025, the company achieved revenue of 1.2 billion, a decrease of 7% year-on-year, with a net profit of 120 million, down 16% [1]. - For H1 2025, total revenue was 2.4 billion, a decline of 2%, while net profit fell by 8% to 240 million. The net profit after excluding non-recurring items was 200 million, down 15% [2]. - The gross margin for H1 2025 was 26.82%, showing a slight increase of 0.41% year-on-year, supported by overseas shipment premiums and internal cost improvements [2]. International Market Strategy - In H1 2025, overseas revenue reached 1.81 billion, accounting for 75.9% of total revenue, with a focus on expanding into new markets such as Europe and the "Belt and Road" initiative [2]. - The company is enhancing its overseas production capabilities, particularly in Thailand, where the expansion is expected to cover over 60% of North American orders [3]. Product and Innovation Development - The company is investing in smart manufacturing upgrades and new product development to enhance product competitiveness and drive business growth [4]. - The company has seen significant growth in its smart home product segment, with a 45.7% increase in channel revenue from partnerships with major retailers [4]. Profit Forecast Adjustment - The company has adjusted its profit forecast for 2025-2027, expecting net profits of 500 million, 560 million, and 630 million respectively, with corresponding price-to-earnings ratios of 10X, 9X, and 8X [5].