Investment Rating - The report maintains a "Recommended" rating for the company [5] Core Views - The company achieved a revenue of 2.441 billion yuan in H1 2025, representing a year-on-year increase of 18.44%, and a net profit attributable to shareholders of 233 million yuan, up 47.38% year-on-year [1] - The company is benefiting from the high demand in the 3C industry, with its 3C drilling and milling center generating 896 million yuan in revenue, a year-on-year increase of 34.07% [3] - The company is expanding its product offerings to cater to humanoid robots and low-altitude applications, enhancing its core component R&D investments [2] Financial Performance - In H1 2025, the company's gross margin was 25.03%, an increase of 2.08 percentage points year-on-year, and the net margin was 9.75%, up 1.74 percentage points year-on-year [1] - The company’s contract liabilities grew significantly by 65.17% year-on-year, indicating a strong order backlog [2] - The forecasted revenues for 2025-2027 are 5.459 billion, 6.669 billion, and 7.202 billion yuan, respectively, with net profits projected at 414 million, 558 million, and 627 million yuan [4] Market Position and Outlook - The company has established partnerships with key players in the robotics and drone sectors, enhancing its market position [2] - The company is expected to benefit from the recovery in the 3C sector, with anticipated revenue growth driven by new product demands and industry innovations [3]

Group 1: Financial Performance - In 2024, the company achieved an operating revenue of 288 million CNY, a year-on-year increase of 16.18% [4] - The sales revenue from 3C precision components was 162.22 million CNY, growing by 4.93% and accounting for 56.29% of total revenue [4] - The automotive precision components sales revenue reached 90.86 million CNY, with a significant growth of 39.70%, representing 31.53% of total revenue [4][12] - In Q1 2025, the company reported a revenue of 82.74 million CNY, marking a 29.96% year-on-year increase, achieving positive growth for the seventh consecutive quarter [4] Group 2: Profitability Challenges - The company reported net losses in 2023 and 2024 due to business transformation, capacity construction, and personnel expansion [5] - Increased fixed costs from the establishment of a smart factory and rising depreciation contributed to a decline in overall gross profit [6] - Employee count rose from 606 in 2023 to 763 in 2024, leading to higher salary expenses impacting profit metrics [6] Group 3: Strategic Focus and Future Outlook - The company plans to focus on core customer relationships and enhance industry influence in 2025, targeting new markets and service model upgrades [7] - In the automotive sector, the company is developing high-voltage power transmission components and diversifying its product offerings [8][9] - The company anticipates that the domestic new energy vehicle sales will reach 16.5 million units by 2025, with a penetration rate of 55% [10] Group 4: Market Position and Product Development - The global PC shipment in 2024 is projected to be 255 million units, with the company's 3C product sales growth outpacing the market average [4] - The company is actively expanding its presence in the energy storage sector, collaborating with clients like Envision Energy [9] - The automotive precision components have become a significant growth driver, with sales expected to continue increasing as production capacity is released [12]