JIN LEI(SZ:300443) SINOLINK SECURITIES·2025-08-29 02:03Investment Rating - The report maintains a "Buy" rating for the company, with expected profit growth leading to a PE ratio of 22, 16, and 13 for the years 2025 to 2027 respectively [4]. Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 1.28 billion RMB, a year-on-year growth of 80%, and net profit of 188 million RMB, a year-on-year growth of 153% [2]. - The wind power business has shown a recovery in profitability, with revenue from wind power shaft business reaching 870 million RMB, a year-on-year increase of 93.6%, and a gross margin improvement to 24.8% [2]. - The company has expanded its precision shaft business, achieving revenue of 182 million RMB, a year-on-year growth of 11.6%, with a gross margin of 34.2% [3]. - The company has demonstrated improved cost efficiency, with a significant reduction in expense ratios across sales, management, and R&D [3]. Summary by Sections Performance Review - In Q2, the company achieved revenue of 780 million RMB, a year-on-year increase of 70% and a quarter-on-quarter increase of 54%, with net profit of 132 million RMB, reflecting a year-on-year growth of 194% and a quarter-on-quarter growth of 135% [2]. Business Analysis - The wind power business is expected to continue its upward trend due to high domestic demand and improved pricing for casting products, with the company capable of producing key components for large wind turbines [2]. - The precision shaft segment has expanded its market presence across various industries, enhancing customer satisfaction and loyalty [3]. Financial Forecast - The projected net profits for the company from 2025 to 2027 are 410 million RMB, 570 million RMB, and 680 million RMB, respectively, indicating strong growth potential [4].