HOLSIN(SH:603909) Changjiang Securities·2025-08-20 09:45Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company achieved operating revenue of 3.393 billion yuan in the first half of 2025, representing a year-on-year increase of 7.67%. The net profit attributable to shareholders was 45 million yuan, up 32.33% year-on-year, while the net profit after deducting non-recurring gains and losses was 41 million yuan, reflecting a growth of 32.46% year-on-year [2][6] Summary by Sections Company Performance - In the first half of 2025, the company reported a significant improvement in profitability, with a comprehensive gross margin of 4.99%, a slight decrease of 0.10 percentage points year-on-year. The second quarter saw a gross margin of 5.07%, down 0.36 percentage points year-on-year. The company effectively controlled its operating expenses, with a total expense ratio of 2.33%, down 0.28 percentage points year-on-year [12] Cash Flow and Debt Management - The company's operating cash flow turned positive in the first half of 2025, with a net inflow of 52 million yuan, and a cash collection ratio of 89.80%, an increase of 4.71 percentage points year-on-year. In the second quarter alone, the net inflow was 288 million yuan, significantly higher than the previous year [12] Land Acquisition and Business Expansion - The company maintained an active land acquisition strategy, with a total land acquisition amount of 36.4 billion yuan in the first seven months of 2025, a year-on-year increase of 9.7%. The area acquired was 1.74 million square meters, up 6.2% year-on-year. The company is expanding its business into key economic regions such as the Greater Bay Area and Yangtze River Delta [12] Contract Signing and Revenue Growth - The company signed new contracts worth 5.05 billion yuan in the first half of 2025, a year-on-year increase of 48%. The engineering construction business saw a remarkable growth in new contracts, amounting to 4.593 billion yuan, up 56% year-on-year, driven by the expansion of land reserves by the controlling shareholder [12] Strategic Management and Future Outlook - The company is focusing on enhancing its market value management, which may accelerate the transformation and upgrading of its main business. The management has indicated plans for capital operations to seek complementary enterprises or assets for mergers and acquisitions, aiming to boost new technologies and products [12]