Ruitai Technology(SZ:002066) HTSC·2025-08-29 11:01Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 14.80 [7][8]. Core Views - The company reported a revenue of RMB 1.964 billion for H1 2025, a year-on-year decrease of 12.43%, and a net profit attributable to shareholders of RMB 22.60 million, down 39.69% year-on-year. The second quarter revenue was RMB 983 million, reflecting a year-on-year decline of 11.12% [1][2]. - The overall gross margin for H1 2025 was 14.46%, a decrease of 1.95 percentage points year-on-year, with specific margins for glass, cement, and steel refractory materials at 15.48%, 20.89%, and 11.43%, respectively [2]. - The company has implemented effective cost control measures, achieving a reduction in costs of RMB 25.27 million and an increase in revenue of RMB 28.96 million [4]. Summary by Sections Financial Performance - H1 2025 revenue was RMB 1.964 billion, down 12.43% year-on-year, with a net profit of RMB 22.60 million, down 39.69% year-on-year. Q2 revenue was RMB 983 million, with a net profit of RMB 611.42 million, down 59.38% year-on-year [1][2]. - The company’s gross margin for H1 2025 was 14.46%, down 1.95 percentage points year-on-year, with Q2 gross margin at 13.68% [2]. Cost Management - The company managed to reduce costs by RMB 25.27 million and increase revenue by RMB 28.96 million through various cost control measures [4]. - The operating expense ratio for H1 2025 was 11.16%, a decrease of 1.03 percentage points year-on-year [3]. Future Outlook - The company anticipates improvement in sales as the "anti-involution" measures progress, potentially enhancing the operating quality of downstream industries such as glass, cement, and steel [1][2]. - Profit forecasts for 2025-2027 are set at RMB 92.32 million, RMB 103.98 million, and RMB 113.61 million, respectively, with corresponding EPS of RMB 0.39, RMB 0.44, and RMB 0.48 [5][11].