CHINT ELECTRICS(SH:601877) Changjiang Securities·2025-09-09 08:16Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 29.62 billion yuan for the first half of 2025, representing a year-on-year increase of 2.2%. The net profit attributable to shareholders was 2.55 billion yuan, up 32.9% year-on-year [3][4]. - In Q2 2025, the company achieved a revenue of 15.06 billion yuan, reflecting a year-on-year growth of 15.2%, with a net profit of 1.39 billion yuan, which is a 65.3% increase year-on-year [3][4]. - The gross profit margin for the first half of 2025 reached 28.08%, an increase of 2.86 percentage points year-on-year, driven by cost reduction and efficiency improvements [8]. - The company’s cash flow from operating activities for the first half of 2025 was 7.128 billion yuan, a year-on-year increase of 55.3% [8]. Summary by Sections Financial Performance - The company’s revenue for the first half of 2025 was 29.62 billion yuan, with a net profit of 2.55 billion yuan, and a non-recurring net profit of 2.53 billion yuan, both showing significant year-on-year growth [3][4]. - In Q2 2025, the revenue was 15.06 billion yuan, with net profits increasing to 1.39 billion yuan [3][4]. Revenue Breakdown - The smart electrical industry generated 12.104 billion yuan in revenue in the first half of 2025, a growth of 3.74% year-on-year. The green energy sector achieved approximately 17.5 billion yuan in revenue, with the household photovoltaic business contributing 14.798 billion yuan [8]. Profitability - The gross profit margin for the first half of 2025 was 28.08%, with Q2 showing a margin of 30.56%, indicating improvements in product structure and profitability in low-voltage electrical products [8]. Cost Management - The total expense ratio for the first half of 2025 was 13.30%, with effective control over various expense categories, contributing to profit growth [8]. Market Position - The company maintains a leading market share in the household photovoltaic sector and is actively expanding into new fields such as AIDC [8]. Future Outlook - The company is expected to achieve a net profit of approximately 4.9 billion yuan in 2025, corresponding to a PE ratio of about 12 times [8].