XGIMI(SH:688696) HTSC·2025-09-09 05:28Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 155.00 [5][7]. Core Views - The company has launched a new employee stock ownership plan aimed at enhancing the profit-sharing mechanism among employees and shareholders, improving corporate governance, and boosting employee morale and creativity [1][2]. - The company has shown resilience in maintaining market share through product iteration and diversification, with a focus on improving profitability through cost optimization and an increase in average selling prices [1][4]. - The company is expanding its product offerings from consumer to commercial applications, particularly in the automotive optical products sector, which broadens its growth trajectory [1]. - The company has set performance targets for the 2025 employee stock ownership plan, including sales volume, overseas revenue, and net profit margin, indicating a strategic focus on profitability and market expansion [2][3]. Summary by Sections Employee Stock Ownership Plan - The 2025 employee stock ownership plan includes performance assessments based on sales volume (minimum of 1.1 million units), overseas revenue (minimum of RMB 1.08 billion), and net profit margin (minimum of 3.5%) [2][12]. - Compared to the 2024 plan, the 2025 plan introduces a net profit margin target, reflecting a stronger emphasis on profitability [3]. Financial Performance - For the first half of 2025, the company reported revenue of RMB 1.626 billion, a year-on-year increase of 1.63%, and a net profit of RMB 88.66 million, showing significant growth compared to the previous year [4]. - The gross margin for the first half of 2025 was 33.28%, up by 4.2 percentage points year-on-year, indicating improvements in product mix and cost efficiencies [4]. Earnings Forecast - The report forecasts earnings per share (EPS) for 2025, 2026, and 2027 to be RMB 5.00, RMB 5.77, and RMB 6.39 respectively, reflecting a positive outlook for profitability [5][9]. - The company is expected to achieve a significant increase in net profit, with projections of RMB 349.81 million for 2025, representing a year-on-year growth of 191.16% [9][17].