HQTI(SH:688281) Minsheng Securities·2025-08-22 08:21Investment Rating - The report maintains a "Recommended" rating for the company, considering its industry-leading position and forward-looking strategic layout in component manufacturing [4][6]. Core Insights - The company reported a revenue of 520 million yuan for the first half of 2025, representing a year-over-year increase of 6.4%, while the net profit attributable to shareholders decreased by 32.5% to 150 million yuan [1]. - The second quarter of 2025 showed significant quarter-over-quarter growth, with revenue reaching 270 million yuan, a 15.7% year-over-year increase and a 13.9% quarter-over-quarter increase [1]. - The company's gross margin declined by 8.7 percentage points to 47.6% in the first half of 2025, primarily due to product upgrades and increased costs during the ramp-up phase of subsidiary production [1][3]. Summary by Sections Financial Performance - In 1H25, the company achieved a net profit of 130 million yuan, down 37.0% year-over-year, with a net profit margin of 26.1%, down 16.0 percentage points [1]. - The operating cash flow improved significantly, reaching 100 million yuan, a year-over-year increase of 55.2% [3]. Business Diversification - The company is expanding its product range, with over 50% of revenue in 1H25 coming from research and development products [2]. - Subsidiaries showed varied performance, with 华秦航发 achieving a revenue of 71.63 million yuan, up 201.5% year-over-year, while 华秦光声 reported a revenue of 7.79 million yuan, up 664.5% year-over-year [2]. Research and Development - The company increased its R&D expense ratio to 13.6%, up 6.8 percentage points year-over-year, indicating a commitment to strengthening its technological barriers [3]. - The company is focusing on the application of ceramic matrix composites in aerospace, with ongoing validation of components delivered to customers [2]. Future Projections - The company forecasts net profits of 415 million yuan, 601 million yuan, and 823 million yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 46x, 32x, and 23x [4][5].