Core Viewpoint - The report highlights the strong performance of Tonghui Electronics in the first half of 2025, with significant growth in net profit and a positive outlook for future product development and market competitiveness [1][4]. Financial Performance - In H1 2025, the company achieved a revenue of 100.58 million yuan, a year-on-year increase of 16.81% [1] - The net profit attributable to shareholders reached 29.31 million yuan, up 55.40% year-on-year [1] - The company's net profit growth outpaced revenue growth, with a net profit margin of 29.11%, an increase of 7.31 percentage points year-on-year [2] Product Development and R&D - The company maintained a high level of R&D investment, with R&D expenses amounting to 13.64 million yuan in H1 2025, a 15.18% increase year-on-year [3] - The company has a robust patent portfolio, including 68 software copyrights and 83 authorized patents, with 56 being invention patents [3] - New product launches, particularly in semiconductor testing and analysis, are expected to enhance the company's product matrix and market competitiveness [3] Investment Outlook - The company is projected to have EPS of 0.38, 0.46, and 0.56 yuan for 2025-2027, corresponding to P/E ratios of 67, 56, and 46 times [4] - The focus on electronic measurement instruments and expansion into semiconductor and renewable energy testing is expected to drive future growth [4]

Investment Rating - The report maintains a "Recommended" investment rating for Tonghui Electronics [1] Core Views - The company has shown a significant recovery in performance with a net profit growth of 125.39% year-on-year in Q1 2025, driven by the recovery in consumer electronics demand [3] - The company is focusing on high-intensity R&D investments, launching multiple new products, and has a rich patent reserve, which is expected to enhance its market competitiveness [3] - The forecasted net profits for 2025-2027 are projected to grow by 21.81%, 20.42%, and 21.96% respectively, indicating a strong growth trajectory [3] Financial Performance Summary - In 2024, the company achieved a revenue of 193.95 million yuan, a year-on-year increase of 14.54%, and a net profit of 50.34 million yuan, up 30.46% [4][6] - For Q1 2025, the company reported a revenue of 39.09 million yuan, reflecting a 23.84% increase year-on-year, and a net profit of 9.92 million yuan, marking a 125.39% growth [3] - The gross margin for Q1 2025 was 56.82%, and the net margin was 25.12%, indicating stable profitability levels [3] Product and Market Development - The company has launched several new products targeting the fields of new energy and third-generation semiconductor power device testing, which are expected to diversify its product matrix and enhance competitiveness [3] - The main products contributing to revenue growth include component parameter testing instruments and safety wire testing instruments, with significant sales growth in the South China region [3] Financial Projections - Revenue projections for 2025, 2026, and 2027 are 239 million yuan, 291 million yuan, and 352 million yuan respectively, with corresponding growth rates of 23.23%, 21.76%, and 20.96% [4][6] - The projected net profit for 2025, 2026, and 2027 is 61.33 million yuan, 73.84 million yuan, and 90.05 million yuan, with growth rates of 21.81%, 20.42%, and 21.96% respectively [4][6]