JCET(SH:600584) HTSC·2025-08-22 07:53Investment Rating - The report maintains a "Buy" rating for the company with a target price of 42.77 RMB [4][6]. Core Views - The company reported a revenue of 9.27 billion RMB in Q2 2025, representing a year-on-year growth of 7.24% but a quarter-on-quarter decline of 0.70%. The gross margin was 14.31%, showing a slight increase from the previous quarter [1][2]. - The decline in net profit attributable to the parent company was 44.75% year-on-year, although it increased by 31.50% quarter-on-quarter, primarily due to increased R&D investments and rising financial expenses [1][2]. - The company is expected to benefit from the traditional peak season in consumer electronics in the second half of 2025, with new capacities from subsidiaries and advanced packaging business contributing to future performance growth [1][4]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 9.27 billion RMB, with a gross margin of 14.31%, which is an increase of 1.68 percentage points from Q1 2025 [1][2]. - The net profit attributable to the parent company was 267 million RMB, down 44.75% year-on-year but up 31.50% quarter-on-quarter [1][2]. Capacity Expansion and Product Optimization - The company is actively expanding its production capacity and optimizing its product structure, with a notable increase in the revenue share from computing electronics and automotive electronics [2][3]. - The revenue share from computing electronics rose from 16.2% in 2024 to 22.4% in the first half of 2025, while automotive electronics increased from 7.9% to 9.3% in the same period [2]. Market Outlook - The global semiconductor market is expected to grow by 15% in 2025, reaching 728 billion USD, which will likely drive growth in the packaging and testing industry [3]. - The company is making significant progress in capacity construction and technology development, with advancements in key technologies such as glass substrates and 2.5D/3D packaging [3]. Valuation and Earnings Forecast - The report has adjusted the net profit forecasts for 2025, 2026, and 2027 down by 20.3%, 18.8%, and 21.1% respectively, with corresponding EPS estimates of 0.91, 1.08, and 1.28 RMB [4][9]. - The target price has been revised down to 42.77 RMB from 46.74 RMB, reflecting a premium PE of 47.0x for 2025, which is higher than the industry average [4][6].