NAIPU MINING(SZ:300818) Yong Xing Zheng Quan·2025-09-09 03:53Investment Rating - The report maintains a "Buy" rating for the company, indicating that the stock price is expected to outperform the benchmark index by more than 20% over the next six months [5]. Core Views - The company's performance is currently under pressure, primarily due to the absence of EPC project revenue, increased fixed asset depreciation, foreign exchange losses, and rising R&D expenses. The gross margin and net margin for H1 2025 are reported at 38.49% and 4.09%, respectively [3]. - The new product, the second-generation forged liner, is expected to generate significant revenue starting from Q4 2025, as it demonstrates superior performance in terms of lifespan, energy consumption, and ore processing efficiency [3]. - The company has successfully expanded its overseas operations, with five bases established in countries such as Zambia, Mongolia, Chile, and Peru. This expansion, along with new product launches, is anticipated to address previous competitive disadvantages and enhance overall revenue potential [4]. Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 413 million yuan, a year-on-year decrease of 34.04%, and a net profit of 17 million yuan, down 79.86% year-on-year. The second quarter saw a revenue of 219 million yuan, a decrease of 42.04% year-on-year but an increase of 13.15% quarter-on-quarter [1]. - The revenue contributions from various segments in H1 2025 were as follows: rubber wear parts (294 million yuan, -2.58% YoY), metal wear parts (58 million yuan, -2.58% YoY), mineral processing equipment (43 million yuan, -8.99% YoY), and pipelines (15 million yuan, +5.32% YoY) [2]. Cost Structure - The company's expense ratio increased to 32.74% in H1 2025, up 15.33 percentage points year-on-year, driven by an expanded sales team and increased R&D investments. Sales expenses rose by 31.52% YoY, while R&D expenses surged by 64.14% YoY [2]. Market Outlook - The global market for mineral processing equipment is expected to continue expanding, with strong growth in downstream mining enterprises' production capacity. The company is well-positioned to benefit from this trend [5]. - Future revenue potential, considering both domestic and overseas capacities, is projected to reach 3 billion yuan [4].