Yunlu Materials(SH:688190) Changjiang Securities·2025-09-08 04:44Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported a revenue of 990 million yuan for the first half of 2025, representing a year-on-year increase of 8.3%. The net profit attributable to the parent company was 170 million yuan, up 1.5% year-on-year, while the net profit excluding non-recurring items was also 170 million yuan, reflecting a 5.3% increase year-on-year. In Q2 2025, the revenue reached 560 million yuan, showing a significant year-on-year growth of 20.7%, although the net profit attributable to the parent company decreased by 0.8% to 90 million yuan [3][8]. Summary by Sections Financial Performance - For H1 2025, the company's gross profit margin was 29.33%, a decrease of 0.92 percentage points year-on-year. In Q2 2025, the gross profit margin was 28.85%, down 1.40 percentage points year-on-year and 1.12 percentage points quarter-on-quarter [8]. - The company's total fixed assets reached 540 million yuan by the end of Q2 2025, an increase of 50 million yuan from Q1 2025 and 170 million yuan from Q2 2024 [8]. - The company reported a negative operating cash flow of 35 million yuan for H1 2025, with Q2 2025 showing a positive cash flow of 82 million yuan, although this was a 45.2% decrease year-on-year [8]. Operational Insights - The company is experiencing continuous capacity expansion, with an increasing penetration rate of amorphous transformers in the distribution sector. It has also achieved mass production of 300mm wide amorphous strip materials, which supports applications in high-power distribution transformers and electric vehicle drive motors [8]. - The company expects a net profit attributable to the parent company of 420 million yuan for 2025, corresponding to a price-to-earnings ratio of approximately 31 times [8].