HIUV(SH:688680) Minsheng Securities·2025-09-01 03:16Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company's revenue for H1 2025 was 633 million yuan, a year-on-year decrease of 57.47%, with a net profit attributable to shareholders of -133 million yuan, indicating a narrowing loss [1]. - The profitability of the encapsulation film business is under short-term pressure due to fluctuations in the photovoltaic industry and intense price competition, leading to historically low gross margins [2]. - The automotive materials business is expected to become a new growth driver, with significant progress in the development of self-researched PDCLC instant light-adjustable liquid crystal films, which have been successfully industrialized [3]. Summary by Sections Financial Performance - In Q2 2025, the company achieved revenue of 318 million yuan, a year-on-year decrease of 48.07%, but a quarter-on-quarter increase of 0.66% [1]. - The net profit for Q2 2025 was -76 million yuan, continuing the loss trend [1]. Business Segments - The encapsulation film business faces challenges due to the photovoltaic industry's cyclical adjustments and market competition, prompting the company to adopt a conservative strategy while focusing on innovation [2]. - The automotive business has made substantial advancements, with the successful launch of the PDCLC film in vehicles, and the company is actively expanding production capacity [3]. Revenue and Profit Forecast - Revenue projections for 2025-2027 are estimated at 1.605 billion, 2.840 billion, and 3.993 billion yuan, respectively, with net profits expected to improve from -197 million yuan in 2025 to 227 million yuan in 2027 [4][5]. - The company anticipates a significant increase in revenue driven by the automotive business, with corresponding PE ratios of 76X for 2026 and 18X for 2027 [4].