KLM(SH:600686) Soochow Securities·2025-09-01 12:15Investment Rating - The report maintains a "Buy" rating for Jinlong Automobile (600686) [1] Core Views - The company's performance in Q2 2025 met expectations, with a revenue of 5.405 billion yuan, a year-on-year decrease of 6.5% but a quarter-on-quarter increase of 9.8% [7] - The net profit attributable to shareholders for Q2 2025 was 69 million yuan, representing a year-on-year increase of 42.5% and a quarter-on-quarter increase of 48.6% [7] - The company achieved a gross margin of 11.8% in Q2 2025, an increase of 2.7 percentage points year-on-year and 0.5 percentage points quarter-on-quarter, driven by internal cost optimization [7] - The integration of three subsidiaries and a management reshuffle are expected to usher in a new development phase for the company [7] - The report forecasts revenue growth for 2025-2027 at 25 billion, 26.8 billion, and 28.5 billion yuan, respectively, with net profit attributable to shareholders projected at 4.4 billion, 6.4 billion, and 8.3 billion yuan [7] Summary by Sections Financial Performance - Q2 2025 revenue was 5.405 billion yuan, down 6.5% year-on-year but up 9.8% quarter-on-quarter [7] - Q2 2025 net profit attributable to shareholders was 69 million yuan, up 42.5% year-on-year and 48.6% quarter-on-quarter [7] - The gross margin for Q2 2025 was 11.8%, reflecting a year-on-year increase of 2.7 percentage points [7] Sales and Market Dynamics - The company sold 11,500 units in Q2 2025, with a year-on-year increase of 11.19% in Q1 but a decrease of 12.20% in Q2 [7] - Export sales in H1 2025 reached 14,000 units, a year-on-year increase of 52.4% [7] Management and Strategic Developments - The completion of the integration of three subsidiaries is expected to enhance operational efficiency [7] - A new management team is anticipated to focus on internal efficiency improvements [7] Earnings Forecast - Revenue projections for 2025-2027 are 25 billion, 26.8 billion, and 28.5 billion yuan, with corresponding net profits of 4.4 billion, 6.4 billion, and 8.3 billion yuan [7]