UE(SH:603600) Huafu Securities·2025-08-26 05:27Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 20% in stock price compared to the market benchmark within the next six months [19]. Core Views - The company reported a revenue of 2.189 billion yuan for the first half of 2025, representing a year-on-year increase of 6.66%. The net profit attributable to shareholders was 133 million yuan, up 4.92% year-on-year [3]. - The company's global layout is showing significant results, with a deepening strategy focused on major clients. In H1 2025, export and domestic sales revenues were 1.642 billion yuan and 541 million yuan, respectively, reflecting growth of 3.7% and 15.4% year-on-year [4]. - The company is actively expanding its production capacity in Vietnam and Romania to support its global strategy and mitigate risks from trade tensions, particularly with the U.S. market [4]. - The company has implemented a robust profit distribution policy, planning to distribute a cash dividend of 52.87 million yuan, which accounts for 39.89% of the net profit attributable to shareholders in H1 2025 [5]. Financial Performance Summary - For H1 2025, the company's gross margin and net margin were 21.82% and 6.04%, respectively, showing a slight year-on-year decline. However, there was a quarter-on-quarter improvement in Q2 2025, with gross margin at 22.82% and net margin at 6.34% [5]. - The company has adjusted its revenue growth forecast for 2025-2027 to 14%, 13%, and 8%, respectively, with net profit growth rates of 15%, 26%, and 20% for the same period [5]. - The company’s total revenue is projected to reach 5.406 billion yuan in 2025, with a net profit of 341 million yuan [6]. Market Position and Strategy - The company is focusing on both domestic market expansion and the development of its own brand, leveraging a comprehensive strategy that includes product, marketing, channel, and supply chain collaboration [4]. - The report highlights the company's proactive approach in navigating trade tensions and its strategic investments in production facilities to enhance its competitive edge in the global market [4].