HASCO(SH:600741) HTSC·2025-08-29 09:48Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 30.60 [1][5]. Core Insights - The company reported a revenue of RMB 84.68 billion for H1 2025, representing a year-on-year increase of 9.6%, and a net profit attributable to shareholders of RMB 2.88 billion, up 0.7% year-on-year. In Q2 alone, revenue reached RMB 44.30 billion, with a year-on-year growth of 10.0% and a quarter-on-quarter increase of 9.7% [1]. - The company is experiencing a shift towards high-value-added products and deepening collaborations with major clients like SAIC and Huawei, which is expected to accelerate its transformation towards smart technologies [1]. - The revenue from non-SAIC clients has increased to 65.5% of total revenue, up 3.3 percentage points from the previous year, indicating an improvement in customer diversification [2]. Summary by Sections Financial Performance - For H1 2025, the company achieved a gross margin of 11.4%, a decrease of 0.7% year-on-year, but Q2 saw an improvement with a gross margin of 11.9%, up 0.15 percentage points year-on-year and 1.05 percentage points quarter-on-quarter [3]. - The company is actively pursuing cost reduction and efficiency improvements, with sales, management, and R&D expense ratios showing a decrease in Q2 [3]. Strategic Acquisitions - The company announced the acquisition of a 49% stake in SAIC Qingtao for RMB 200 million, marking its entry into the solid-state battery sector, which is expected to synergize with its existing electric drive and thermal management businesses [4]. - Additionally, a subsidiary plans to acquire a 5.3% stake in Lianchuang Automotive Electronics for up to RMB 15.5 million, which will enhance its smart chassis product offerings [4]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders is RMB 7.11 billion for 2025, with a projected PE ratio of 13.6x for the same year, reflecting a target price increase due to a rise in comparable company valuation averages [5].