Core Viewpoint - The electric vehicle (EV) business has become the biggest highlight for Xiaomi in the latest quarter, with both Morgan Stanley and UBS emphasizing that EV deliveries will be a key driver for the stock price in the second half of the year [1][5][11]. Financial Performance - Xiaomi's Q2 2025 adjusted net profit reached 10.831 billion RMB, a year-on-year increase of 75.4%, marking the highest quarterly profit in history [3]. - Total revenue for Q2 reached 115.956 billion RMB, a year-on-year growth of 30% and a quarter-on-quarter growth of 4%, exceeding Morgan Stanley's expectations by 3% [15]. - The company's overall gross margin improved to 22.5%, up 1.8 percentage points year-on-year, but down 0.3 percentage points quarter-on-quarter [8]. Business Segment Analysis - The EV business showed a gross margin of 26.4%, significantly up by 3.3 percentage points quarter-on-quarter, indicating strong profit potential [8]. - AIoT business gross margin was 22.5%, up 2.8 percentage points year-on-year but down 2.7 percentage points quarter-on-quarter [9]. - The smartphone business faced challenges with a gross margin of 11.5%, down 0.7 percentage points year-on-year and 0.9 percentage points quarter-on-quarter, reflecting intense market competition [10]. Electric Vehicle Business Insights - UBS maintains a delivery forecast of 720,000 units for 2026, assuming full capacity operation of the second-phase factory [14]. - The average selling price of EVs increased by 6.4% quarter-on-quarter to 254,000 RMB, driven by high-end models SU7 Ultra and YU7 [11]. - The strong order intake for the YU7 model is expected to drive EV delivery volumes, which will be a key catalyst for stock price growth in the second half of the year [13]. Market Outlook - Morgan Stanley maintains an "Overweight" rating with a target price of 62 HKD, indicating an 18% upside potential from the current stock price [1][5]. - The company's diversified business strategy is proving effective, with the rapid development of the EV business opening new growth avenues [17].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company reported a significant increase in orders on hand, indicating a potential turning point in performance for the third quarter [4][5] - For the first half of 2025, the company achieved revenue of 599 million, a year-on-year decrease of 18.16%, and a net profit attributable to the parent company of 93 million, down 51.41% year-on-year [2][4] - The company has signed contracts with a corresponding revenue amount of 1.75 billion as of the end of the first half of 2025, representing a 478% increase compared to the beginning of the period [4] Financial Performance Summary - In Q2 2025, the company recorded revenue of 313 million, a year-on-year decrease of 18.01%, but a quarter-on-quarter increase of 9.49% [2][4] - The gross profit margin for the casting high-temperature alloy business was 39.4%, down 11.4 percentage points year-on-year, while the gross profit margin for the deformation high-temperature alloy business was 25.6%, down 4.9 percentage points year-on-year [4] - The company forecasts net profits attributable to the parent company for 2025-2027 to be 300 million, 450 million, and 650 million, respectively, with year-on-year growth rates of 14%, 47%, and 46% [4]

Core Viewpoint - Yuanyuan Group's 2025 interim report shows performance in line with expectations, with revenue of $4.06 billion, a year-on-year increase of 1.1%, and a net profit of $171 million, down 7.2% year-on-year [1] Group 1: Manufacturing Business - Manufacturing revenue reached $2.8 billion in H1 2025, up 6.2% year-on-year, with a capacity utilization rate of 93%, an increase of 3 percentage points [1] - The average selling price of products increased to $20.61 per pair, a rise of 3.2% year-on-year, driven by a better product mix [1] - Revenue from the U.S., Europe, and other regions grew by 12.7%, 12.9%, and 14.0% respectively, while revenue from mainland China declined by 24.0% [1] - Manufacturing gross margin decreased by 1.4 percentage points to 17.7%, primarily due to rising labor costs and uneven capacity utilization [1] Group 2: Retail Business - Retail revenue was 9.16 billion RMB, down 8.3% year-on-year, with net profit declining 44% to 188 million RMB, impacted by weak domestic consumption and store adjustments [2] - The number of direct stores decreased by 40 to 3,408, with offline sales down 14%, accounting for 67% of total sales [2] - Online sales through partnerships increased by 16%, with live streaming sales doubling, although average discount rates increased due to competitive promotions [2] - Retail gross margin fell by 0.7 percentage points to 33.5% [2] Group 3: Inventory and Cost Management - Manufacturing inventory turnover days remained stable at 51 days, while accounts receivable turnover days increased to 56 days [2] - Retail inventory turnover days increased by 16 days to 146 days, with accounts receivable turnover days rising to 19 days [2] - Manufacturing business maintained a reasonable expense control with selling and administrative expenses at 10.3% of revenue, down 0.3 percentage points [3] - Retail business expenses increased to 31.5% of revenue, up 0.9 percentage points, due to revenue decline [3] Group 4: Future Outlook - The company is the largest sports shoe manufacturer globally and the second-largest sports goods retailer in China, but faces challenges from rising labor costs and weak domestic consumption [4] - Profit forecasts for 2025-2027 have been revised down to $360 million, $410 million, and $440 million respectively, with a corresponding PE ratio of 8, 7, and 6 times [4] - The target market value suggests over 20% upside potential compared to current valuations, maintaining a buy rating [4]

华虹半导体今年第二季毛利率超指引上限，单价提升或在第三季之后反映。第二季收入5.66亿美元略超 指引中位数及该行预期，毛利率10.8%超预期和指引上限。管理层指出已在第二季做价格调整，总体涨 价在个位数左右，且会在第三、四季集中体现。指引第三季收入达6.2亿至6.4亿美元，毛利率10至 12%，均高于该行预期。 该行上调华虹半导体2025年底九厂产能预期至每月5万片12英寸产能，并保持之后每六个月增加2.5万 片/月的产能爬坡速率，在2026年第三季完成所有8.3万片规划产能爬坡并贡献收入。 交银国际发布研报称，上调华虹半导体(01347)2025年及2026年收入预测24.1亿及28.7亿美元，前值预测 22.9亿及27.7亿美元。上调2025年毛利率预测到10.8%，前值9.2%，该行升华虹半导体目标价至49港 元，评级"买入"。 ...

证券研究报告 | 2025年08月11日 华利集团（300979.SZ） 上半年收入增长 10%，盈利受老客订单波动及新厂产能爬坡影响承压 |  | 公司研究·公司快评 | |  | 纺织服饰·纺织制造 |  投资评级：优于大市（维持） | | --- | --- | --- | --- | --- | --- | | 证券分析师： | 丁诗洁 | 0755-81981391 | | dingshijie@guosen.com.cn | 执证编码：S0980520040004 | | 证券分析师： | 刘佳琪 | 010-88005446 | | liujiaqi@guosen.com.cn | 执证编码：S0980523070003 | 事项： 公司公告：2025 年 8 月 8 日，公司发布中期业绩快报及分红预案，2025 年上半年，公司销售运动鞋 1.15 亿双，同比增长 6.14%；实现营业收入人民币 126.61 亿元，同比增长 10.36%；实现归属于上市公司股东 的净利润人民币 16.64 亿元，同比减少 11.42%。公司拟派发现金红利 1 元/股，分红率达 70%。 国信纺服观点：1） ...

Core Viewpoint - The report from CMB International indicates a positive trend in the gross margin of Huahong Semiconductor (01347), predicting a rebound in gross margin to 11.5% in Q3 2025, following a recovery in product prices and strong demand for PMIC products [1][2] Group 1: Financial Performance - The company reported revenue of $566 million in Q2 2025, slightly exceeding the median guidance and expectations, with a gross margin of 10.8%, surpassing the upper limit of guidance [1] - The revenue forecast for 2025/26 has been raised to $2.41 billion and $2.87 billion, respectively, from previous estimates of $2.29 billion and $2.77 billion [1] - The gross margin forecast for 2025 has been increased to 10.8%, up from 9.2% [1] Group 2: Operational Insights - Management highlighted that the improvement in gross margin is primarily due to increased capacity utilization, initial cost control effects, and stabilization in product prices [1] - The company has adjusted prices in Q2 2025, with overall price increases in the single digits, expected to be more evident in Q3 and Q4 2025 [1] - The guidance for Q3 2025 revenue is set between $620 million and $640 million, with a gross margin of 10-12%, all exceeding previous expectations [1] Group 3: Market Demand and Capacity - The demand for PMIC products has surged, with a year-on-year growth of 59.5%, and the revenue share from analog/PMIC platforms has increased to 28.5%, up 7.4 percentage points year-on-year [2] - Management noted that the demand for related BCD platforms could be double the previous supply capacity [2] - The company expects to complete 80-90% of the capacity installation at the ninth factory by the end of 2025, with full completion by mid-2026 [2] Group 4: Production Capacity Projections - The company has completed a monthly capacity ramp-up of 25,000 wafers in the first half of 2025, with an updated forecast to reach 50,000 wafers per month by the end of 2025 [2] - The ramp-up rate is expected to be faster than previously predicted, with plans to achieve all 83,000 wafers of planned capacity by Q3 2026 [2] - The majority of PMIC products are 12-inch, which may help stabilize the average selling price (ASP) [2]

Group 1 - The core viewpoint of the report indicates that Huahong Semiconductor (01347) is expected to see a reversal in its gross margin trend in 2Q25, with a forecasted gross margin rebound to 11.5% in 3Q25 and stability in 4Q25 due to positive price changes in most platform products [1] - The company’s revenue forecast for 2025 and 2026 has been raised to $2.41 billion and $2.87 billion respectively, up from previous estimates of $2.29 billion and $2.77 billion, reflecting the impact of price increases, product mix changes, and high demand for PMIC [1] - The management highlighted that the gross margin exceeded guidance due to improved capacity utilization, cost control effects, and price stabilization, with 2Q25 revenue reported at $566 million, slightly above the median guidance [1] Group 2 - The management noted strong resilience in downstream demand and manageable tariff impacts, with PMIC product revenue experiencing a robust year-on-year growth of 59.5%, contributing to 28.5% of total revenue, an increase of 7.4 percentage points year-on-year [2] - The company’s capacity ramp-up is expected to be faster than previously predicted, with the ninth factory projected to reach 80-90% completion by the end of 2025, and full completion by mid-2026, with a monthly capacity ramp-up of 50,000 wafers by the end of 2025 [2] - The management indicated that the demand for PMIC products is likely to be double the previous supply capacity, and the company is adjusting prices, with overall price increases expected to be in the single digits, reflecting a reduction in pricing pressure across most platforms [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 20.10, up from the previous RMB 19.95 [4][6]. Core Insights - The company reported better-than-expected performance in its half-year results for 2025, with revenue of RMB 999 million (up 8.1% year-on-year) and net profit attributable to shareholders of RMB 117 million (up 14.2% year-on-year) [1]. - The company is expected to benefit from a favorable industry environment and a sufficient order backlog, leading to continuous growth in performance from 2025 to 2027 [1][2]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved revenue of RMB 999 million, with a year-on-year growth of 8.1%. The net profit attributable to shareholders was RMB 117 million, reflecting a year-on-year increase of 14.2% [1]. - The second quarter of 2025 saw revenue of RMB 561 million, representing a year-on-year increase of 18.4% and a quarter-on-quarter increase of 30.8% [1]. Revenue Breakdown - The revenue from environmental testing services was RMB 487 million (up 5.8% year-on-year) with a gross margin of 55.0% (down 0.8 percentage points) [2]. - Integrated circuit testing revenue reached RMB 155 million (up 21.0% year-on-year) with a gross margin of 36.5% (down 6.4 percentage points) [2]. - Testing equipment revenue was RMB 310 million (up 6.3% year-on-year) with a gross margin of 26.6% (down 4.7 percentage points) [2]. Cash Flow and Capital Expenditure - The company's net operating cash flow for the first half of 2025 was RMB 99 million, an increase of 29.3% year-on-year, attributed to improved collection mechanisms [3]. - Capital expenditure was RMB 217 million, a decrease of 7.5% year-on-year, mainly due to reduced equipment purchases [3]. Profit Forecast - The report maintains profit forecasts for 2025-2027, estimating net profits attributable to shareholders of RMB 289 million, RMB 357 million, and RMB 429 million respectively [4]. - The expected compound annual growth rate (CAGR) for net profit from 2023 to 2027 is projected at 23%, which is higher than the average of comparable service companies at 21% [4].

Group 1 - The latest development regarding the judicial auction of shares held by the controlling shareholder and actual controller of Spring兴精工, Sun Jiexiao, has been reported. The auction for 154 million shares and 15.535 million shares, which are currently under judicial freeze, took place from July 28 to July 29, 2025, but went unsold due to no bids being placed [1] - As of the announcement date, Sun Jiexiao and her concerted party, Yuan Jing, collectively hold 335 million shares, accounting for 29.66% of the company's total equity. Among these, 319 million shares are pledged, representing 95.36% of their holdings and 28.28% of the total equity. Additionally, 304 million shares are under judicial freeze, making up 90.73% of their holdings and 26.91% of the total equity [1] - The company stated that the failure of the judicial auction will not have a significant adverse impact on its production and operations. However, there is uncertainty regarding whether the relevant court will continue to execute other judicial procedures, which could lead to risks such as forced transfer or judicial auction of shares, potentially affecting the stability of the company's control [1] Group 2 - Spring兴精工 previously disclosed that as of June 28, Suzhou Industrial Park Kahn Lian Technology Co., Ltd. owes the company 316 million yuan in equity transfer payments, while Huizhou Zehong Technology Co., Ltd. owes 80.925 million yuan in business-related payments, totaling 397 million yuan. Sun Jiexiao, as the actual controller of Suzhou Industrial Park Kahn Lian Technology Co., Ltd., bears joint guarantee responsibility for these payments [2] - The company has issued a performance forecast indicating that it expects a negative net profit for the first half of 2025. This is attributed to the ongoing ramp-up of production capacity in its new energy vehicle components business, which has not yet reached an ideal state, thus impacting operational performance [2] - Additionally, Chongqing Xinrunxing Technology Co., Ltd. has filed a lawsuit against the subsidiary Huizhou Spring兴精工 due to a sales contract dispute, with the amount in question being 38 million yuan. As of now, the case has not yet been heard. Based on the principle of accounting prudence, Huizhou Spring兴精工 plans to recognize a provision for expected liabilities amounting to 21 million yuan [2]

Group 1: Metal Sector - China Hongqiao's net profit forecast for 2024 is CNY 223.72 billion, with a PE ratio of 8.14[12] - Hualing Steel's net profit is projected to increase from CNY 20.32 billion in 2024 to CNY 28.54 billion in 2025, with a PE ratio of 19.72[12] - Xiamen Tungsten's net profit is expected to rise from CNY 17.28 billion in 2024 to CNY 21.01 billion in 2025, with a PE ratio of 22.97[12] Group 2: Construction and Transportation - Sichuan Road and Bridge's net profit is forecasted to grow from CNY 72.10 billion in 2024 to CNY 82.86 billion in 2025, with a PE ratio of 10.35[12] - YTO Express's net profit is expected to decrease from CNY 40.12 billion in 2024 to CNY 35.39 billion in 2025, with a PE ratio of 13.03[12] - China Merchants Highway's net profit is projected to be CNY 55 billion in 2025, with a PE ratio of 14.56[12] Group 3: Chemical and Energy Sector - Yara International's net profit is expected to rise from CNY 9.50 billion in 2024 to CNY 17.94 billion in 2025, with a PE ratio of 30.56[12] - Funiu Power's net profit forecast for 2025 is CNY 28.95 billion, with a PE ratio of 9.18[12] - Huajin's net profit is projected to recover to CNY 0.92 billion in 2025 after a loss of CNY 27.95 billion in 2024[12] Group 4: Strategic Metals and New Materials - Xiamen Tungsten's strategic metal segments are expected to contribute 79% to profits in 2024, with a focus on tungsten and rare earths[21] - Zhongcai Technology's special glass fiber is projected to see significant demand growth due to AI hardware requirements, with expected profits of CNY 0.2 billion in 2024[30] - The company anticipates a profit contribution from special glass fiber of CNY 7.2 billion by 2026[30]