CAIP(SH:603035) Guotou Securities·2025-08-27 13:47Investment Rating - The report maintains a "Buy-A" rating for the company with a 6-month target price of 18.07 CNY per share, compared to the current share price of 14.85 CNY [5][7]. Core Insights - The company achieved a revenue of 2.78 billion CNY in H1 2025, representing a year-on-year growth of 17.18%, while the net profit attributable to shareholders was 216 million CNY, a decrease of 15.63% year-on-year [1]. - In Q2 2025, the company reported a revenue of 1.44 billion CNY, which is a 9.83% increase year-on-year and a 7.84% increase quarter-on-quarter, driven by strong sales from core customer Chery and the continued growth of new energy vehicle clients [2]. - The company’s gross margin in Q2 2025 was 15.81%, down 3.31 percentage points year-on-year but up 0.84 percentage points quarter-on-quarter, with improvements attributed to economies of scale [2]. - Investment income from joint ventures and associates was 70 million CNY in Q2 2025, down 8.65% year-on-year but up 98.18% quarter-on-quarter, indicating a significant recovery [3]. - The report highlights multiple factors driving future growth, including the expansion of new energy vehicle clients, international market development, and breakthroughs in exterior parts business [4]. Financial Summary - The company is projected to achieve net profits of 530 million CNY, 640 million CNY, and 770 million CNY for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 10.7, 8.8, and 7.3 [5][12]. - The company’s revenue is expected to grow from 46.0 billion CNY in 2023 to 100.4 billion CNY by 2027, reflecting a compound annual growth rate of approximately 20% [12].