NJEC(SH:600699) Minsheng Securities·2025-08-29 06:38Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price of 21.14 yuan on August 28, 2025 [4][6]. Core Insights - The company reported a revenue of 30.347 billion yuan for the first half of 2025, representing a year-on-year increase of 12.07%. The net profit attributable to shareholders was 708 million yuan, up 11.13% year-on-year [1][2]. - The second quarter of 2025 saw a revenue of 15.771 billion yuan, a 14.27% increase year-on-year and an 8.20% increase quarter-on-quarter. The net profit for this quarter was 367 million yuan, reflecting an 11.18% year-on-year increase [1][2]. - The company is positioning itself as a Tier 1 supplier in the automotive and robotics sectors, aiming to create a second growth curve through integrated hardware and software solutions for key components in robotics [3]. Financial Performance Summary - Revenue for 2025 is projected to be 62.249 billion yuan, with net profit expected to reach 1.489 billion yuan, translating to an EPS of 1.07 yuan. The company anticipates continued growth with revenues of 64.995 billion yuan and 68.566 billion yuan in 2026 and 2027, respectively [4][5]. - The gross profit margin for Q2 2025 was 18.39%, an increase of 2.89 percentage points year-on-year, attributed to cost reduction and efficiency improvement measures [2][3]. - The company has seen a steady increase in its net profit margin, which reached 2.33% in Q2 2025, despite a slight year-on-year decrease [2]. Strategic Developments - The establishment of a wholly-owned subsidiary focused on robotics indicates the company's commitment to expanding its capabilities in the robotics industry, enhancing its product offerings in this sector [3]. - The company is actively improving its overseas operations by optimizing procurement and adjusting production capacity to lower-cost regions, which is expected to further enhance its gross profit margins [3].