XGIMI(SH:688696) Huachuang Securities·2025-09-12 07:13Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 142.7 CNY, compared to the current price of 125.68 CNY [5][6]. Core Insights - The company has returned to a growth trajectory, achieving a revenue of 1.63 billion CNY in H1 2025, representing a year-over-year increase of 1.6%. The net profit attributable to the parent company reached 90 million CNY, a significant year-over-year increase of 2062.3% [2][9]. - In Q2 2025, the company reported a revenue of 820 million CNY, with a year-over-year growth of 5.4%, indicating a clear improvement trend [2][9]. - The core business of complete machines and accessories generated 1.49 billion CNY in revenue during H1 2025, showing a slight decline of 0.4% year-over-year, primarily due to poor performance in overseas markets, which saw a year-over-year decrease of 10.9%. However, domestic market performance remained stable with a year-over-year increase of 1.3% [9]. - The company benefited from the incubation growth of non-core businesses, which saw a year-over-year increase of 314.9% [9]. - The overall gross margin improved significantly, reaching 33.3% in H1 2025, an increase of 4.2 percentage points year-over-year. The gross margin for Q2 2025 was 32.6%, up 2.4 percentage points year-over-year [9]. - The net profit margin for H1 2025 was 5.5%, an increase of 5.2 percentage points year-over-year, with Q2 2025 showing a net profit margin of 3.2%, marking a turnaround from the previous year [9]. Financial Summary - The company is projected to achieve total revenue of 3.777 billion CNY in 2025, with a year-over-year growth rate of 10.9%. The net profit attributable to the parent company is expected to reach 237 million CNY, reflecting a year-over-year growth of 97.5% [4][10]. - Earnings per share (EPS) are forecasted to be 3.39 CNY in 2025, with a price-to-earnings (P/E) ratio of 37 [4][10]. - The company’s total assets are projected to grow from 5.319 billion CNY in 2024 to 6.527 billion CNY by 2027 [10].