YDC(SH:605555) GOLDEN SUN SECURITIES·2025-08-31 10:33Investment Rating - The investment rating for the company is "Accumulate" [4][7]. Core Views - The company reported a revenue of 2.07 billion yuan in H1 2025, representing a year-on-year increase of 11.0%, but the net profit attributable to shareholders decreased by 46.5% to 110 million yuan [1]. - The small home appliances and automotive parts segments showed strong performance, with the automotive parts business achieving a revenue increase of 89.9% year-on-year in H1 2025 [2]. - The gross margin and net margin have declined due to U.S. tariff policies and price pressures in the home appliance industry, with gross margins at 14.0% and 12.3% for H1 and Q2 2025, respectively [3]. Financial Performance - In H1 2025, the home appliance segment generated 1.74 billion yuan in revenue, a 6.0% increase year-on-year, while the small appliance sales increased by 19.8% to 810 million yuan [2]. - The company expects gradual recovery in profitability due to strong overseas demand and the release of new production capacity in Vietnam [3]. - The profit forecast for 2025-2027 has been adjusted, with net profits projected at 410 million, 520 million, and 646 million yuan, reflecting growth rates of 0.8%, 25.6%, and 24.2%, respectively [4].