RTGF(SH:605133) EBSCN·2025-09-01 06:13Investment Rating - The report maintains a "Buy" rating for the company [6][3] Core Views - The company's total revenue for 1H25 increased by 16.6% year-on-year to RMB 1.34 billion, with net profit attributable to shareholders rising by 13.3% to RMB 98 million [1] - The Mexican factory has turned profitable, achieving a net profit of RMB 19.95 million in 1H25 compared to a loss of RMB 11.38 million in 1H24, indicating improved operational efficiency [2] - The company is expected to benefit from new project ramp-ups and refined management, enhancing its cost structure and profitability [2] - The robotics segment is rapidly developing, with multiple initiatives underway, including partnerships for screw technology and acquisitions in the automotive electronics sector [3] Summary by Sections Financial Performance - 1H25 total revenue reached RMB 1.34 billion, accounting for 41% of the annual forecast, while net profit was RMB 98 million, representing 39% of the annual forecast [1] - 2Q25 revenue grew by 6.2% year-on-year and 2.4% quarter-on-quarter to RMB 680 million, with net profit increasing by 12.8% year-on-year and 2.6% quarter-on-quarter to RMB 49 million [1] Cost Structure - The gross margin for 1H25 decreased by 1.8 percentage points to 21.8%, while the combined expense ratio for sales, management, and R&D fell by 0.8 percentage points to 13.2% [2] - In 2Q25, the gross margin was 21.9%, showing a year-on-year decline of 3.5 percentage points but a quarter-on-quarter increase of 0.3 percentage points [2] Growth Initiatives - The company completed a RMB 878 million private placement in April 2025 to support the expansion of its smart manufacturing capabilities for new energy vehicle components [2] - The robotics business is diversifying, with plans to establish a joint venture for screw technology and an acquisition in the automotive electronics sector [3] Profit Forecast - The report maintains profit forecasts for 2025E, 2026E, and 2027E at RMB 252 million, RMB 343 million, and RMB 434 million respectively, reflecting confidence in the company's growth trajectory [3]