China XD(SH:601179) Minsheng Securities·2025-08-26 02:13Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its performance and market position [4][6]. Core Insights - The company achieved a revenue of 11.33 billion yuan in H1 2025, representing a year-on-year increase of 8.91%, with a net profit of 598 million yuan, up 30.08% year-on-year [1]. - The company's gross margin improved to 21.61% in H1 2025, an increase of 0.86 percentage points compared to 2024, while the net profit margin rose to 6.55%, up 1.05 percentage points [2]. - The core business structure is continuously optimizing, with significant achievements in both domestic and international markets, including major contracts won in various sectors [3]. Financial Performance Summary - In H1 2025, the company's core businesses, switches and transformers, generated revenues of 4.93 billion yuan and 4.25 billion yuan, respectively, showing year-on-year growth of 10.45% and 4.04% [4]. - The company expects revenues of 25.92 billion yuan, 29.26 billion yuan, and 32.25 billion yuan for 2025, 2026, and 2027, respectively, with corresponding growth rates of 16.3%, 12.9%, and 10.2% [5]. - The projected net profit for the same years is 1.56 billion yuan, 1.94 billion yuan, and 2.29 billion yuan, with growth rates of 48.0%, 24.4%, and 18.0% [5].