Hsino Tower (SH:601096) Changjiang Securities·2025-09-09 09:15Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported a significant improvement in gross margin and a notable increase in order growth [3][4]. - In the first half of 2025, the company achieved operating revenue of 4.91 billion yuan, a year-on-year decrease of 4.5%, while net profit attributable to shareholders reached 200 million yuan, up 96.3% year-on-year [3][4]. - The gross margin for the first half of 2025 was 11.91%, an increase of 3.69 percentage points year-on-year, indicating effective cost control and operational optimization [8]. - The company has successfully expanded its market presence, with cumulative bids amounting to 7.109 billion yuan, a year-on-year increase of 47.25% [8]. Summary by Sections Financial Performance - In Q2 2025, the company achieved operating revenue of 2.61 billion yuan, a slight increase of 0.1% year-on-year, and net profit attributable to shareholders of 110 million yuan, up 84.5% year-on-year [3][4]. - The company’s net profit for 2025 is projected to reach 360 million yuan, corresponding to a PE ratio of approximately 34 times [8]. Cost and Margin Analysis - The gross margin for Q2 2025 was 12.55%, reflecting a year-on-year increase of 3.14 percentage points and a quarter-on-quarter increase of 1.36 percentage points [8]. - The company’s four expense ratios reached 5.58% in the first half of 2025, with a slight increase in sales and management expense ratios [8]. Order and Market Expansion - The company has made significant strides in market development, with domestic bids totaling 5.884 billion yuan, a year-on-year increase of 68.19% [8]. - The company has also made breakthroughs in new business areas, including winning bids for new types of wind power structures [8].