Zhongyuan Securities·2025-09-11 07:11Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected increase of over 15% relative to the CSI 300 index in the next six months [25]. Core Views - The company achieved a total operating revenue of 19.982 billion yuan in the first half of 2025, representing a year-on-year growth of 5.42%. The net profit attributable to shareholders reached 2.515 billion yuan, up 16.36% year-on-year [5][6]. - The coal machinery segment continues to perform strongly, with net profit reaching a new high, while the automotive parts segment has turned profitable [6][8]. - The company is positioned as a leader in hydraulic supports and is the largest global manufacturer of coal mining equipment, which enhances its market share in the ongoing intelligent transformation of coal mining [9]. Summary by Sections Financial Performance - In the first half of 2025, the coal machinery segment generated operating revenue of 10.149 billion yuan, a year-on-year increase of 3.51%, with a net profit of 2.241 billion yuan, up 8.36% [8]. - The automotive parts segment reported operating revenue of 9.833 billion yuan, a growth of 7.47%, and a net profit of 274 million yuan, reflecting a significant increase of 192.91% [8][10]. - The overall gross margin for the company was 23.56%, with a slight year-on-year decline of 0.52 percentage points, while the net margin improved to 12.86%, an increase of 0.55 percentage points [6]. Market Trends - The coal mining industry in China is experiencing a shift towards intelligent and green transformation, which is expected to increase demand for coal machinery [7][8]. - The automotive industry is also undergoing a transformation, with a focus on product and technology innovation, leading to a robust market demand for automotive parts [10]. Future Projections - The company has slightly raised its revenue forecasts for 2025 to 39.579 billion yuan, with net profit projections adjusted to 4.353 billion yuan, reflecting a stable growth outlook [11][12]. - The estimated price-to-earnings ratios for 2025-2027 are projected to be 9.35X, 8.56X, and 7.88X, indicating a relatively low valuation compared to peers [11].