Core Viewpoint - Guangdong Lingxiao Pump Industry Co., Ltd. held an online performance briefing on September 19, 2025, addressing key investor questions regarding production, market expansion, and long-term strategies [1][3][6]. Group 1: Performance and Production - The company produced 3.1 million electric motors for water pumps in 2024 [6]. - In the first half of 2025, the company reported revenue of 840 million yuan and sold approximately 1.6 million water pumps [6]. Group 2: Market and Sales - The company is expanding its market presence, particularly in the stainless steel pump sector, with double-digit growth in regions such as Europe, the Middle East, and Southeast Asia [6]. - Overseas sales are primarily driven by plastic bathroom pumps, followed by stainless steel pumps [6]. Group 3: Financial Performance - Since its listing, the company has achieved a 95% increase in revenue and a 195% increase in net profit [6]. Group 4: Governance and Strategy - The company is enhancing its corporate governance structure in compliance with legal regulations and has not identified any significant internal control deficiencies in financial reporting [6]. - The long-term strategy focuses on electric pump R&D, maintaining advantages in plastic bathroom pumps, and developing new product categories such as pool pumps and seawater pumps [6].

Report Summary 1. Report Industry Investment Rating - No information provided in the document. 2. Core View of the Report - From the June data, real estate investment continued to decline significantly, sales recovery was weak with a slightly wider decline, and the decline in new construction and completion narrowed under the low - base effect. Attention should be paid to policy changes and the restoration of the market's internal driving force [1]. 3. Summary by Relevant Indicators Development Investment - The cumulative development investment completion amount from January to June 2025 was 466.58 billion yuan, with a cumulative year - on - year decrease of 11.2%. The growth rate in June was - 12.0%, in May it was - 10.7%, in 2024 it was - 12.9%, and the annual growth rate in 2024 was - 10.6% [1]. New Construction Area - The cumulative new construction area of houses from January to June 2025 was 30.364 million square meters, with a cumulative year - on - year decrease of 20.0%. The growth rate in June was - 9.4%, in May it was - 19.3%, in 2024 it was - 22.8%, and the annual growth rate in 2024 was - 23.0% [1]. Commercial Housing Sales Area - The cumulative commercial housing sales area from January to June 2025 was 45.851 million square meters, with a cumulative year - on - year decrease of 3.5%. The growth rate in June was - 5.5%, in May it was - 3.3%, in 2024 it was - 2.9%, and the annual growth rate in 2024 was - 12.9% [1]. Housing Construction Area - The cumulative housing construction area from January to June 2025 had a year - on - year decrease of 9.2%. The growth rate in 2024 was - 9.1%, and the annual growth rate in 2024 was - 12.7% [1]. Housing Completion Area - The cumulative housing completion area from January to June 2025 was 22.567 million square meters, with a cumulative year - on - year decrease of 14.8%. The growth rate in June was - 1.7%, in May it was - 19.5%, in 2024 it was - 17.3%, and the annual growth rate in 2024 was - 27.7% [1].

Core Viewpoint - The company is expected to face profit impacts in 2024 due to impairment and a decrease in project turnover, but a gradual stabilization of gross margins is anticipated as the industry recovers, maintaining a "Buy" rating [1] Financial Performance - In 2024, the company achieved total operating revenue of 311.67 billion yuan, a year-on-year decrease of 10.15%, primarily due to a decline in real estate project turnover; net profit attributable to shareholders was 5.001 billion yuan, down 58.56% year-on-year [2] - The company has adjusted its EPS forecasts for 2025-2026 to 0.45 yuan and 0.49 yuan respectively, and introduced a new EPS forecast of 0.54 yuan for 2027; a target price of 10.17 yuan is set based on a 0.6x PB valuation method [2] Sales and Market Position - The company maintained its industry-leading sales scale, achieving a signed area of 17.9661 million square meters in 2024, a decrease of 24.7% year-on-year, and a sales amount of 323.029 billion yuan, down 23.5% year-on-year; it has remained the top in sales amount for two consecutive years [3] - The company focused on 38 core cities, with sales accounting for 90% of total sales, an increase of 2 percentage points year-on-year; the market share in these cities reached 7.1%, up 0.3 percentage points from 2023 [3] Cash Flow and Asset Management - The company reported positive operating cash flow of 6.3 billion yuan in 2024, marking the seventh consecutive year of positive cash flow; at year-end, cash on hand was 134.2 billion yuan, with receivables from sold but not yet collected funds amounting to 83.2 billion yuan [3] - The company has successfully revitalized approximately 47.5 billion yuan of restricted funds through accelerated investment recovery in joint projects and land reserves [4]