DOUBLE ARROW(SZ:002381) Guohai Securities·2025-09-11 10:31Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10]. Core Views - The report highlights that the performance of the company has been impacted by the asset impairment losses, but it remains optimistic about the company's long-term development [4][10]. - The company has seen a year-on-year increase in sales scale in the first half of 2025, with operating revenue reaching 1.333 billion yuan, a 4.63% increase compared to the previous year [4]. - The net profit attributable to shareholders decreased by 59.99% year-on-year to 44 million yuan, primarily due to increased asset impairment losses [4][5]. Financial Performance Summary - In the first half of 2025, the company reported a net cash flow from operating activities of 27 million yuan, a decrease of 49.64% year-on-year, mainly due to increased cash payments for goods and services [4]. - The company’s subsidiary, Taisheng, reported a net loss of 26 million yuan in the first half of 2025, attributed to the initial production phase of its new project, leading to higher production costs [5]. - The gross profit margin for Q2 2025 was 15.68%, a decrease of 3.29 percentage points year-on-year [5]. Market Position and Growth Potential - The rubber conveyor belt industry is a significant part of the rubber industry, with broad applications and substantial market potential [6]. - The company has established itself as a leading enterprise in the domestic rubber conveyor belt market, being a key drafter of national and industry standards [8]. - With the gradual commissioning of new production capacity, including the "annual production of 15 million square meters of high-strength energy-saving and environmentally friendly conveyor belts" project, the company is expected to meet growing order demands and enhance market share [8][10]. Earnings Forecast - The company’s projected operating revenues for 2025, 2026, and 2027 are 3.2 billion, 3.88 billion, and 4.513 billion yuan, respectively, with corresponding net profits of 129 million, 246 million, and 305 million yuan [9][10]. - The report anticipates a significant recovery in net profit growth, with a forecasted increase of 90% in 2026 [10].