NEWAY(SH:603699) Changjiang Securities·2025-08-29 09:12Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a revenue of 3.4 billion yuan, representing a year-on-year increase of 19.96%, and a net profit attributable to shareholders of 637 million yuan, up 30.44% year-on-year. In Q2 2025, revenue reached 1.848 billion yuan, a 25.03% increase year-on-year, with a net profit of 374 million yuan, up 28.37% year-on-year, aligning with previous forecasts [2][6] Summary by Sections Financial Performance - The company achieved a gross margin of 36.09% in Q2 2025, showing a quarter-on-quarter improvement, and a net profit margin of 20.23%, which is stable year-on-year. The net profit, excluding share-based payment impacts, reached 674 million yuan in H1 2025, with a sales net profit margin of 19.80%, up 1.2 percentage points year-on-year [12] Product and Capacity Expansion - The company has expanded its product offerings to include 11 major series of valves, with over 95,000 specifications to meet various demanding applications. This positions the company to provide a comprehensive range of industrial valve products [12] Market Development - The company has made significant advancements in high-end markets such as nuclear power and low-temperature applications, successfully developing high-pressure special valves and obtaining certifications for ultra-low temperature safety valves [12] Production Capacity - The company continues to enhance its production capacity, particularly in forging and casting, to meet downstream demand. Recent expansions include the addition of more intelligent production lines [12] Order and Cash Flow - The company reported a contract liability of 500 million yuan, a year-on-year increase of 122.7%, indicating a robust order backlog. It also announced a mid-year cash dividend of 446 million yuan, representing 70.02% of net profit, reflecting healthy cash flow [12] Future Profit Forecast - The company is projected to achieve net profits of 1.424 billion yuan, 1.738 billion yuan, and 1.912 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 18, 15, and 13 [12]