Autowell(SH:688516) Changjiang Securities·2025-09-14 14:43Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Views - The company reported a revenue of 3.379 billion yuan for the first half of 2025, a year-on-year decrease of 23.5%, with a net profit attributable to the parent company of 308 million yuan, down 60% year-on-year [2][4]. - In Q2 2025, the company achieved a revenue of 1.845 billion yuan, a year-on-year decline of 24.79%, but a quarter-on-quarter increase of 20.28%. The net profit for Q2 was 166 million yuan, down 61.86% year-on-year, but up 17.8% quarter-on-quarter [2][4]. - The company is accelerating its expansion into overseas markets, with foreign revenue increasing by 10% year-on-year, now accounting for 23% of total revenue [8]. Summary by Sections Financial Performance - For H1 2025, the company’s revenue was 3.379 billion yuan, with a gross margin of 28%, down 6 percentage points year-on-year. The revenue breakdown by product shows that photovoltaic equipment accounted for 79%, lithium battery equipment 5%, semiconductor 2%, and others 14% [8]. - The company’s gross margin for photovoltaic equipment was 25%, lithium battery equipment 21%, semiconductor 16%, and others 46% [8]. - The company reported asset impairment losses and credit impairment losses of 58 million yuan and 98 million yuan, respectively, impacting total profit by approximately 156 million yuan [8]. Orders and Market Strategy - As of mid-2025, the company had an order backlog of 10.569 billion yuan, a year-on-year decrease of 26.32%. New orders in H1 2025 declined mainly due to a drop in photovoltaic orders, while orders for energy storage/lithium battery and semiconductor equipment continued to grow [8]. - The company is focusing on platform development, with R&D expenses of approximately 200 million yuan in H1 2025, a year-on-year increase of about 4% [8]. - The company has made significant progress in its semiconductor business, with new orders exceeding 90 million yuan, indicating strong growth potential [8]. Future Outlook - The company expects a net profit of 780 million yuan for 2025, corresponding to a price-to-earnings ratio of 18 times [8].