SHUANGHUAN COMPANY(SZ:002472) Minsheng Securities·2025-08-28 09:43Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [6]. Core Views - The company has shown strong performance in its financial results for the first half of 2025, with a revenue of 42.29 billion yuan, a slight decrease of 2.2% year-on-year, but a significant increase in net profit by 21.9% to 5.77 billion yuan [1][2]. - The company's main business revenue grew by 11.5% year-on-year, driven by strong performance in passenger car gears, intelligent actuators, and reducers [2][3]. - The company is expanding its international presence, focusing on deepening its overseas market operations and engaging with global automotive manufacturers and Tier 1 suppliers [3]. Summary by Sections Financial Performance - In 2025H1, the company reported a revenue of 42.29 billion yuan, with a net profit of 5.77 billion yuan, reflecting a year-on-year increase of 21.9% [1]. - For 2025Q2, revenue was 21.64 billion yuan, down 3.7% year-on-year but up 4.8% quarter-on-quarter, with a net profit of 3.01 billion yuan, marking a 19.4% increase year-on-year [2]. - The gross margin for 2025Q2 was 27.3%, an increase of 4.4 percentage points year-on-year, attributed to a decrease in lower-margin steel trading and improved scale effects in passenger car gear business [2]. Business Growth and Strategy - The company is a leading supplier of precision drive system gears and is accelerating its globalization efforts while expanding into intelligent drive mechanisms and robotic joints [4]. - The intelligent actuator segment is growing rapidly, with the company becoming a core supplier for domestic smart cleaning machines and e-bike manufacturers [3]. - The company plans to leverage its technology platform to expand into plastic gears and develop precision transmission components for smart home and office applications [3]. Future Projections - Revenue projections for 2025-2027 are estimated at 104.7 billion yuan, 124.7 billion yuan, and 149.6 billion yuan, respectively, with net profits expected to reach 13.0 billion yuan, 15.2 billion yuan, and 18.9 billion yuan [4][5]. - The earnings per share (EPS) are projected to be 1.54 yuan, 1.79 yuan, and 2.23 yuan for the years 2025, 2026, and 2027, respectively [5].