STEC(SH:600820) Hua Yuan Zheng Quan·2025-09-02 11:00Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company's profit significantly improved in Q2 2025, with high dividends and emerging layouts contributing to long-term growth potential [5] - The company is expected to achieve net profits of 2.996 billion, 3.162 billion, and 3.364 billion RMB for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 5.46%, 5.52%, and 6.42% [5] - The current stock price corresponds to a PE ratio of 6.85, 6.49, and 6.10 for the years 2025, 2026, and 2027 respectively, indicating a valuation advantage [5] Financial Performance Summary - In H1 2025, the company achieved revenue of 22.021 billion RMB, a year-on-year decrease of 21.45%, with net profits of 727 million and 680 million RMB, reflecting a decline of 7.49% and a slight increase of 0.21% respectively [7] - The company proposed a cash dividend of 252 million RMB for H1 2025, with a dividend payout ratio of 37.71%, highlighting its investment value [7] - The company’s comprehensive gross margin for H1 2025 was 15.39%, a year-on-year increase of 0.45 percentage points [7] Business Segments and Market Expansion - The company’s operational business showed strong growth, with overseas revenue reaching 2.492 billion RMB, a year-on-year increase of 8.85% [7] - New signed orders in H1 2025 amounted to 46.207 billion RMB, a year-on-year increase of 0.18%, with notable growth in design and operational contracts [7] - The company is actively expanding its international presence, with significant order growth in regions outside Shanghai and overseas [7] Financial Ratios and Projections - The company’s asset-liability ratio stands at 76.04%, with a net asset value per share of 9.75 RMB [3] - The projected revenue for 2025 is 72.613 billion RMB, with a year-on-year growth rate of 5.52% [6] - The expected return on equity (ROE) for 2025 is 8.18% [6]