BVEA(SH:600379) Changjiang Securities·2025-09-09 09:15Investment Rating - The investment rating for the company is "Buy" and it is maintained [7]. Core Views - The company reported a significant decline in revenue and net profit for the first half of 2025, with total revenue of 639 million yuan, down 24.7% year-on-year, and a net profit attributable to shareholders of 40 million yuan, down 19.0% year-on-year [2][4]. - The company is shifting its focus from energy storage system integration to energy management systems (EMS) and software sales, leading to a 95% decline in energy storage business revenue [10]. - Core technology product sales, including high-voltage vacuum circuit breakers, saw a substantial increase of 68% year-on-year [10]. - The gross profit margin improved to 19.58% in the first half of 2025, up 2.9 percentage points year-on-year, primarily due to the reduction of low-margin energy storage integration business [10]. - The company completed the acquisition of 51.16% of Kessel Technology, resulting in increased sales volume and revenue for vacuum circuit breakers, with sales volume up 18% and revenue up 24% year-on-year [10]. Summary by Sections Financial Performance - For the first half of 2025, the company achieved a total revenue of 639 million yuan, a decrease of 24.7% year-on-year, and a net profit of 40 million yuan, down 19.0% year-on-year [2][4]. - In Q2 2025, revenue was 320 million yuan, down 28.5% year-on-year, with a net profit of 20 million yuan, down 38.0% year-on-year [2][4]. Revenue and Profitability - The company is transitioning its business model, leading to a drastic reduction in energy storage revenue while core technology products are experiencing growth [10]. - The gross profit margin for the first half of 2025 was 19.58%, reflecting an improvement due to the strategic shift away from low-margin businesses [10]. Strategic Developments - The acquisition of Kessel Technology is expected to enhance market share in the vacuum circuit breaker segment, with positive sales growth reported post-acquisition [10]. - The company is expanding its international market presence, successfully entering potential markets in Europe and South Asia [10].