XUSHENG(SH:603305) ZHONGTAI SECURITIES·2025-08-28 08:59Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a positive outlook for the stock over the next 6 to 12 months [2]. Core Views - The report highlights that the company is experiencing a phase of recovery in performance, driven by a resurgence in demand and the contribution from emerging businesses, particularly in the energy storage sector [4][5]. - The company achieved a revenue of 2 billion yuan in the first half of 2025, reflecting a year-on-year decline of 24.2%, but showed signs of recovery with a 3.9% increase in Q2 revenue [4]. - The gross margin improved in Q2, reaching 22.75%, attributed to business structure optimization and increased revenue from overseas clients [4][7]. Summary by Sections Financial Performance - The company reported a revenue of 4,834 million yuan for 2023, with a projected decline to 4,409 million yuan in 2024, followed by a recovery to 5,140 million yuan in 2025 [2]. - The net profit attributable to the parent company is forecasted to decrease from 714 million yuan in 2023 to 416 million yuan in 2024, before rebounding to 505 million yuan in 2025 [2]. - The earnings per share (EPS) is expected to rise from 0.44 yuan in 2024 to 0.53 yuan in 2025 [2]. Business Development - The company is expanding its new business segments, including energy storage, robotics, and magnesium alloy applications, which are expected to drive future growth [5][6]. - In the energy storage sector, the company has secured partnerships with several global system integrators, enhancing its market position [6]. - The robotics division focuses on core components and has established deep collaborations with leading robotics firms, securing multiple project approvals [6]. Global Strategy - The company is advancing its globalization strategy with the operational launch of its Mexico factory and the commencement of construction for its Thailand facility [7]. - The Mexico facility is expected to enhance production capacity and local operational efficiency, while the Thailand base will cater to the growing Southeast Asian market for new energy vehicles and high-end manufacturing [7].