Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company has a significant advantage in customer resources and strategically locates its production capacity close to downstream customers [7] - The company has established joint ventures with international partners, enhancing its market presence and technological capabilities [7] - The company has a well-structured layout with 16 production bases across various regions, ensuring timely response and supply to major manufacturers [7] - The forecasted net profit for 2025-2027 is expected to be 5.31 billion, 6.37 billion, and 7.71 billion respectively, with corresponding PE ratios of 10.8, 9.0, and 7.4 [7] Financial Performance Summary - For the first half of 2025, the company achieved revenue of 2.78 billion, a year-on-year increase of 17.18%, while the net profit attributable to shareholders was 216 million, a year-on-year decline of 15.63% [7] - The gross margin for the first half of 2025 was 15.40%, down by 2.76 percentage points year-on-year [7] - The company’s revenue projections for the next few years are as follows: 2023A at 4,599 million, 2024A at 5,667 million, 2025E at 6,526 million, 2026E at 7,663 million, and 2027E at 9,036 million [6][8] - The net profit projections are: 2023A at 546 million, 2024A at 425 million, 2025E at 531 million, 2026E at 637 million, and 2027E at 771 million [6][8] - The company’s EPS is projected to be 1.44 in 2023, 1.12 in 2024, 1.40 in 2025, 1.67 in 2026, and 2.03 in 2027 [6][8]

Financial Performance - In the first half of 2025, the company achieved operating revenue of 672 million, representing a year-on-year growth of 21.10% [1] - The net profit attributable to the parent company reached 107 million, with a year-on-year increase of 17.10% [1] - The gross margin for the first half of 2025 was 29.94%, a decrease of 1.2 percentage points compared to the previous year [1] Cost Management - The company demonstrated a reduction in expense ratios: sales expense ratio at 3.62% (down 0.08 percentage points), management expense ratio at 4.33% (down 0.12 percentage points), and R&D expense ratio at 3.81% (down 0.39 percentage points) [1] - The company has a strong cost control advantage, with a gross margin at a high level due to several factors, including a self-manufacturing rate of over 90% for tooling and molds [2] - The company employs strict performance assessment and incentive mechanisms linking employee compensation to production waste rates [2] Client Base and Market Position - The company has established itself as a leader in the domestic automotive sealing strip industry, serving notable clients such as FAW-Volkswagen, SAIC Volkswagen, and Geely [2] - The company optimizes procurement processes and reduces costs by integrating raw material varieties and improving formulations [2] Future Profit Projections - The company is expected to achieve net profits attributable to the parent company of 252 million, 308 million, and 366 million for the years 2025, 2026, and 2027, respectively [2] - Corresponding price-to-earnings ratios are projected to be 17.6, 14.3, and 12.1 times for the same years [2]