TRUCHUM(SZ:002171) Guohai Securities·2025-09-07 12:33Investment Rating - The investment rating for the company is upgraded to "Buy" [1][9]. Core Views - The company has experienced significant growth in its copper-based materials production and sales, with a notable increase in revenue and net profit in the first half of 2025 [2][3][4]. - The company is focusing on high-growth sectors such as new energy, 5G communication, and AI, establishing competitive advantages through differentiated products [7][9]. - The financial forecasts indicate a steady increase in revenue and net profit over the next few years, with projected revenues of 634.20 billion, 724.96 billion, and 822.08 billion for 2025, 2026, and 2027 respectively [9][11]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 288.03 billion, a year-on-year increase of 16.05%, and a net profit of 2.51 billion, up 48.83% year-on-year [2][4]. - The sales gross margin was 3.24%, a decrease of 0.16 percentage points year-on-year, while the net profit margin increased by 0.18 percentage points to 0.98% [2][4]. Product Segmentation - Revenue from copper-based materials reached 278.78 billion in the first half of 2025, growing by 17.11% year-on-year, with a gross margin of 2.46% [3][12]. - The sales volume of copper strip products was 179,900 tons, an increase of 8.36% year-on-year, while copper conductor products saw a 14.53% increase in sales volume to 229,400 tons [3][12]. Future Projections - The company expects to see continued growth in revenue and net profit, with net profit projected to reach 6.17 billion, 7.61 billion, and 9.82 billion for 2025, 2026, and 2027 respectively [9][11]. - The projected PE ratios for the next three years are 25, 20, and 16 respectively, indicating a favorable valuation outlook [9][11].