NJEC(SH:600699) Guoxin Securities·2025-09-02 05:07Investment Rating - The investment rating for the company is "Outperform the Market" [5][66]. Core Insights - The company achieved a net profit of 370 million yuan in Q2 2025, representing a year-on-year increase of 11% [1][8]. - In H1 2025, the company reported revenue of 30.347 billion yuan, a year-on-year growth of 12.07% [8]. - The automotive safety system revenue for H1 2025 was 18.977 billion yuan, with a gross margin of 15.93%, up 1.99 percentage points year-on-year [9]. - The automotive electronics system revenue for H1 2025 was 8.356 billion yuan, with a gross margin of 21.54%, up 2.17 percentage points year-on-year [9]. - The company has a strong order backlog, with a total new order lifecycle amounting to 39.3 billion yuan, with over 66% related to new energy vehicles [2][39]. - The company is actively expanding its automotive electronics business, including breakthroughs in intelligent driving and smart cockpit solutions [2][43]. Financial Performance - For Q2 2025, the company's gross margin was 18.4%, an increase of 2.7 percentage points year-on-year [19]. - The net profit margin for Q2 2025 was 3.2%, showing a slight year-on-year decrease of 0.1 percentage points [19]. - The company’s four expense ratios for H1 2025 were 13.64%, up 2.5 percentage points year-on-year [23]. - The projected revenue for 2025-2027 is 64.243 billion, 68.098 billion, and 71.843 billion yuan, respectively [66]. Business Segments - The automotive safety business is a core driver of revenue, with significant contributions from both traditional and new energy vehicle segments [2][39]. - The company is positioning itself as a "Tier 1" supplier in both automotive and robotics sectors, focusing on the integration of intelligent robotics into its product offerings [3][60]. - The company has established a wholly-owned subsidiary for humanoid robotics, indicating a strategic expansion into the robotics industry [3][61]. Market Position - The company is recognized as a leading provider of intelligent automotive technology solutions, focusing on automotive electronics and safety systems [28]. - The company is leveraging its global presence to support both domestic and international automotive manufacturers in their transition to smart electric vehicles [58][59].