Wuxi Best Precision Machinery (SZ:300580) 汽车琰究·2025-08-17 15:07Core Viewpoint - The company reported steady revenue growth and profit increase in the first half of 2025, indicating effective cost reduction and efficiency improvement strategies [2][3]. Revenue and Profit Performance - In H1 2025, the company achieved revenue of 716 million yuan, a year-on-year increase of 2.73%, and a net profit attributable to shareholders of 148 million yuan, up 3.30% year-on-year [2]. - For Q2 2025, revenue reached 367 million yuan, reflecting a year-on-year growth of 3.55% and a quarter-on-quarter increase of 4.93% [3]. - The net profit attributable to shareholders for Q2 2025 was 79 million yuan, showing a year-on-year increase of 6.15% and a quarter-on-quarter rise of 13.94% [3]. Cost Management and Efficiency - The gross profit margin for Q2 2025 was 35.21%, an increase of 1.03 percentage points year-on-year and 1.02 percentage points quarter-on-quarter [3]. - The company has been implementing refined internal management practices, leading to a downward trend in overall expense ratios, despite an increase in financial expense ratio due to foreign exchange gains and losses [3]. Capacity Expansion and New Projects - The company established a wholly-owned subsidiary, Anhui Best, in June 2022, focusing on lightweight components for new energy vehicles and other high-value precision parts, with production capacity gradually being released [4]. - A new facility, Beiyonghua New Technology Co., Ltd., is set to open in Thailand in Q4 2025, further expanding the company's international market presence [4]. Product Development and Market Expansion - The company is comprehensively developing linear motion components, including high-precision ball screw assemblies and linear guideways, with successful applications in well-known domestic machine tool manufacturers [5]. - The company has achieved breakthroughs in manufacturing standards and has received initial orders for its high-level products, indicating strong market demand [5]. Investment Outlook - The company is positioned to benefit from its deep engagement in precision processing and is expected to see revenue growth from 1.614 billion yuan in 2025 to 2.110 billion yuan in 2027, with net profits projected to increase correspondingly [6][8]. - Earnings per share (EPS) are forecasted to rise from 0.68 yuan in 2025 to 0.90 yuan in 2027, with a corresponding price-to-earnings (PE) ratio decreasing from 39 to 29 [6][8].