JIULI Hi-tech(SZ:002318) EBSCN·2025-08-26 13:12Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company achieved a revenue of 6.105 billion yuan in H1 2025, representing a year-on-year increase of 26.39%, and a net profit attributable to shareholders of 828 million yuan, up 28.48% year-on-year [1] - The growth in gross profit is primarily driven by seamless steel pipes and composite steel pipes, with total gross profit reaching 1.66 billion yuan, a year-on-year increase of 37.99% [1] - The company is actively expanding into emerging markets and increasing R&D investment, which reached 212 million yuan in H1 2025, a 14.20% increase year-on-year [2] - The net profit from the company's European operations was 176 million yuan in H1 2025, an increase of 138 million yuan year-on-year [2] - The company has reduced its stake in Yongxing Materials to 5% as of August 25, 2025 [3] Financial Summary - Revenue projections for 2025-2027 are 16.24 billion yuan, 18.76 billion yuan, and 21.60 billion yuan respectively, with a maintained "Buy" rating [3] - The company’s revenue for 2025 is estimated at 11.943 billion yuan, with a growth rate of 9.39% [4] - The net profit for 2025 is projected to be 1.624 billion yuan, reflecting an 8.94% growth rate [4] - The company’s EPS for 2025 is expected to be 1.66 yuan [4] - The projected ROE for 2025 is 18.94% [4] Profitability and Valuation Metrics - The gross margin is expected to improve to 28.2% in 2025 [15] - The P/E ratio is projected to decrease from 15 in 2023 to 10 in 2027 [16] - The dividend per share is expected to be 0.83 yuan in 2025 [16]