Shanghai Liangxin Electrical (SZ:002706) Guoxin Securities·2025-09-09 07:47Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company has achieved a steady growth in performance, with a net profit of 246 million yuan in the first half of 2025, representing a year-on-year increase of 4.1%. The revenue for the same period was 2.334 billion yuan, up 16.12% year-on-year [1][8] - The company is focusing on the "Two Smart, One New" strategy, shifting its business focus towards new energy and data centers. It has streamlined its organizational structure into four major segments: new energy, smart buildings, infrastructure, and digital energy [1][16] - The company's new energy business is solid, with strong ties to high-quality clients such as Sungrow, Huawei, CATL, and BYD. It has launched new products that enhance its position in the new energy sector and is actively expanding into overseas markets [2][16] - The company's AIDC (Artificial Intelligence Data Center) business is expected to become a new growth driver, leveraging over 20 years of experience in the data center field and maintaining deep collaborations with major players like Huawei and ZTE [2][18] Summary by Sections Financial Performance - In the second quarter of 2025, the company reported revenue of 1.245 billion yuan, a year-on-year increase of 16.64% and a quarter-on-quarter increase of 14.38%. The net profit for the quarter was 143 million yuan, down 2.61% year-on-year but up 38.9% quarter-on-quarter [1][8] - The sales net profit margin was 11.68%, showing a year-on-year decrease of 2.3 percentage points but an increase of 2.2 percentage points quarter-on-quarter [1][8] Profit Forecast and Financial Indicators - The profit forecast has been adjusted, with expected net profits for 2025-2027 projected at 461 million, 523 million, and 604 million yuan, respectively, reflecting year-on-year growth rates of 48%, 14%, and 15% [3][19] - Earnings per share (EPS) are expected to be 0.41, 0.47, and 0.54 yuan for 2025, 2026, and 2027, respectively, with dynamic price-to-earnings (PE) ratios of 28, 25, and 21 [3][19] Market Position and Strategy - The company has integrated its previous seven industries into four key segments, focusing on high-growth areas such as smart distribution and new energy, which are expected to drive future growth [1][16] - The company is also enhancing its product offerings in the data center sector, with a comprehensive range of solutions that have been successfully implemented in major projects [2][18]