EBSCN·2025-09-05 03:45Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company experienced a significant decline in revenue and net profit in the first half of 2025, with revenue down 11.3% year-on-year to 6.93 billion yuan and net profit down 15.1% to 770 million yuan [1][2] - Despite the short-term operational pressure, the company's profit margins remained stable, with a gross margin of 16.0%, up 0.8 percentage points year-on-year, and a net profit margin of 12.0%, up 0.2 percentage points [2] - The company has been actively expanding its overseas market presence, achieving a 16.5% year-on-year increase in overseas revenue to 660 million yuan, which now accounts for 9.5% of total revenue [3] Summary by Sections Financial Performance - In H1 2025, the company reported a revenue of 6.93 billion yuan, a decrease of 11.3% year-on-year, and a net profit of 770 million yuan, down 15.1% [1] - The second quarter of 2025 saw a revenue of 2.37 billion yuan, reflecting a 24.7% year-on-year decline, with net profit at 240 million yuan, down 21.7% [1] - The agricultural machinery segment generated 6.28 billion yuan in revenue, down 11.5%, while the power machinery segment brought in 650 million yuan, down 8.9% [2] Market Expansion - The company sold 43,000 tractor units in H1 2025, with overseas sales reaching 5,445 units, a 29.4% increase year-on-year [3] - The overseas sales strategy has been effective, particularly in the African and Central Eastern European markets, where sales growth exceeded 50% [3] Profitability and Valuation - The report adjusts the net profit forecasts for 2025-2027 downwards by 16.1%, 11.4%, and 8.7% to 880 million, 1.01 billion, and 1.12 billion yuan respectively [4] - The current stock price corresponds to a PE ratio of 17, 14, and 13 for 2025-2027 [4] - The company is positioned to benefit from the trend towards larger agricultural machinery, supporting long-term revenue growth [4]