Naruida(SH:688522) HTSC·2025-08-26 04:01Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company has shown strong performance in H1 2025, with revenue reaching 155 million RMB, a year-on-year increase of 112.84%, and a net profit of 56.95 million RMB, up 866.97% year-on-year [1][2] - The demand from downstream sectors continues to grow, with significant increases in new contracts for phased array radar systems, indicating a positive outlook for the second half of the year [2] - The company is actively expanding its product matrix and enhancing technological capabilities, which is expected to create multiple growth points [3] - The acquisition of Sigma Microelectronics is aimed at strengthening the company's radar chip design capabilities, enhancing product development and operational efficiency [4] Summary by Sections Financial Performance - In Q2 2025, the company achieved revenue of 96.70 million RMB, a year-on-year increase of 134.22% and a quarter-on-quarter increase of 66.19% [1] - The core radar detection system generated revenue of 154 million RMB, with a gross margin of 72.45%, despite a year-on-year decline of 6.44 percentage points [2] - The company’s contract liabilities reached 148 million RMB, reflecting a year-on-year growth of 130.11%, indicating sustained demand [2] Product Development - The company is developing advanced radar systems, including full-polarization digital active phased array radars, which will broaden its product offerings [3] - As of June 30, the company has deployed nearly 300 active phased array radar systems across over 20 provinces and regions in China, enhancing its market presence [3] Mergers and Acquisitions - The acquisition of Sigma Microelectronics is expected to enhance the company's product and technology development, contributing to revenue growth and operational synergies [4] Profit Forecast and Valuation - The company’s projected net profits for 2025-2027 are 216 million RMB, 345 million RMB, and 504 million RMB, respectively, with corresponding EPS of 0.71, 1.14, and 1.66 RMB [5][10] - The target price is set at 71.86 RMB, based on a PE ratio of 101 for 2025 [5][6]