Investment Rating - Industry rating: Recommended [6] Core Insights - The report highlights that the company, Juxing Technology, is expected to achieve a net profit attributable to shareholders of 1.253-1.373 billion yuan in H1 2025, with a year-on-year growth rate of 5%-15% [10][11] - The company has secured a significant electric tool order from a major international retailer, with an expected annual procurement amount of no less than 30 million USD, marking its first overseas production order since the launch of its electric tool product line in 2021 [2][13] - The report emphasizes the resilience of Juxing Technology's operations despite tariff impacts, with Q2 profits expected to increase due to higher gross margins driven by cross-border e-commerce sales and new product launches, particularly in electric tools [12][15] Summary by Sections 1. Weekly Focus: Juxing Technology Q2 Performance Exceeds Expectations - Juxing Technology's Q2 performance is projected to show a net profit of 792-912 million yuan, with a year-on-year growth rate of 1.6%-16.9% [11] - The company faced production capacity impacts for approximately 40 days due to tariff policies, affecting order delivery and revenue [11][12] - The establishment of production bases in Vietnam is expected to provide a tariff advantage, with agreements in place to reduce tariffs from 25% to 20% for exports to the US [12][13] 2. Key Company Announcements - The company, Ecovacs, anticipates a net profit of 960-990 million yuan for H1 2025, representing a year-on-year increase of 57.64%-62.57% [16] - The net profit for Ecovacs in Q2 2025 is expected to be 485-515 million yuan, reflecting a year-on-year increase of 55.9%-65.6% [17] 3. Data Tracking - Raw material prices show fluctuations, with LME copper prices down by 3.3% and LME aluminum prices up by 0.2% as of July 11, 2025 [18] - Shipping rates have decreased, with the CCFI composite index down by 2.18% compared to the previous week [23] - Real estate data indicates a decline in sales area, completion area, and new construction area by 2.9%, 17.3%, and 22.8% respectively for the first five months of 2025 [25]

Investment Rating - The report maintains an "Accumulate" rating for the company [8] Core Views - The company achieved a revenue of 4.506 billion RMB in Q1 2025, representing a year-over-year increase of 8.02% and a quarter-over-quarter increase of 20.07%. The net profit attributable to the parent company was 436 million RMB, up 15.18% year-over-year but down 2.85% quarter-over-quarter, indicating that the company's performance is generally in line with expectations [1] - The company is expected to maintain a steady growth trajectory in 2025 due to product structure optimization and deepening domestic and international layouts [1] - The gross margin for Q1 2025 was 20.51%, which is relatively stable compared to the previous year, while the expense ratio slightly increased to 10.97% [2] - The company is expanding its global supply capabilities with a new manufacturing base in Thailand, expected to be operational by the end of 2025, which will enhance local manufacturing and service capabilities [3] - The company has launched a diversified overseas business, including a leasing company in Europe, aimed at promoting low-carbon development and providing flexible options for customers [4] Financial Forecast and Valuation - The company is projected to achieve net profits of 2.248 billion RMB, 2.516 billion RMB, and 2.807 billion RMB for the years 2025, 2026, and 2027, respectively, with a compound annual growth rate (CAGR) of 11.74% [5] - The target price for the company is set at 24.08 RMB, based on a price-to-earnings (PE) ratio of 14 times for 2025, reflecting a premium due to the company's proactive expansion of overseas sales channels and the upcoming production capacity in Thailand [5][9]