Core Viewpoint - The report highlights the strong financial performance of Zhao Wei Electromechanical (003021) in Q2 2025, with significant revenue and profit growth, and emphasizes the ongoing development of its robotic dexterous hand products and global expansion efforts [1][2][3]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 790 million yuan, a year-on-year increase of 21.9%, and a net profit attributable to shareholders of 110 million yuan, up 20.7% year-on-year [1]. - For Q2 2025, the company reported operating revenue of 420 million yuan, reflecting a year-on-year growth of 25.9% and a quarter-on-quarter increase of 14.0%. The net profit for the same period was 60 million yuan, representing a year-on-year increase of 52.3% and a quarter-on-quarter rise of 7.0% [1][2]. Product Performance - Revenue from the micro drive system reached 500 million yuan, contributing 63.3% to total revenue, with a gross margin of 27.6%, down 2.1 percentage points year-on-year. Precision parts generated 240 million yuan, accounting for 30.4% of revenue, with a gross margin of 43.8%, up 5.8 percentage points year-on-year. Revenue from precision molds and others surged to 50 million yuan, a year-on-year increase of 88.5%, contributing 6.3% to total revenue, with a gross margin of 18.6%, up 15.7 percentage points year-on-year [1][2]. Cost and Efficiency - In Q2 2025, the company's gross margin and net margin were 32.2% and 14%, respectively, reflecting increases of 2.5 percentage points and 2.4 percentage points year-on-year. The total expense ratio decreased by 4.0 percentage points year-on-year to 18.0% [2]. R&D and Product Development - The company is actively advancing the research and development of its robotic dexterous hand and core components. In July, it launched new dexterous hand products, DM17 and LM06, utilizing differentiated technology routes for various operational scenarios [2]. - The company has completed technical breakthroughs for a 4mm brushless hollow cup motor and is progressing with small-batch production of small-diameter products [2]. Global Expansion - The company is successfully advancing its globalization strategy, having initiated capacity construction in Thailand and filed for an H-share listing on the Hong Kong Stock Exchange [2]. It plans to invest up to 100 million USD in the new factory [2]. Investment Outlook - The company is positioned as a global leader in micro drive and drive system solutions, benefiting from trends in miniaturization, automation, and intelligence across various sectors including smart vehicles, consumer and medical technology, and advanced manufacturing [3]. - EPS forecasts for 2025, 2026, and 2027 are projected at 1.12, 1.43, and 1.81 yuan, respectively, with corresponding PE ratios of 108.8, 85.4, and 67.3 [3].