Core Viewpoint - Company forecasts a net profit of $90 million to $100 million for H1 2025, representing a year-on-year increase of 46% to 62% [1] - Adjusted net profit, excluding non-recurring gains from the disposal of equity in Qianfeng Automotive, is expected to be $70 million to $80 million, reflecting a year-on-year growth of 14% to 30% [1] - The strong profit performance is attributed to the steady growth of the EGO brand, divestiture of non-core assets, and favorable currency fluctuations [1] Business Operations - Despite concerns over US-China trade tariffs, the company demonstrates operational resilience through proactive measures [1] - In 2024, North America is projected to generate $1.293 billion in revenue, accounting for 72.9% of total revenue, with OPE products previously subject to a 7.5% tariff [1] - New tariffs of 20% on fentanyl and 10% on reciprocal goods have been introduced, prompting the company to implement strategies such as preemptive overseas inventory stocking and adaptive pricing [1] Asset Divestiture - The company signed an agreement to sell its stake in Qianfeng Automotive for 570 million RMB, which is expected to yield an investment gain of $20 million [2] - The divestiture will eliminate the negative impact of joint venture losses, which were $18.3 million and $17.3 million in 2023 and 2024, respectively [2] Long-term Outlook - The company is recognized as a leading brand in electric tools and lithium battery outdoor power equipment (OPE), with the EGO brand showing strong growth momentum [2] - The market share in the US is expected to increase by 2 percentage points in 2024, with a deepening user perception [2] - The shift from traditional gasoline OPE to lithium battery OPE is anticipated to continue, driven by improved product performance and reduced total ownership costs [2] Profit Forecast and Valuation - The company maintains its profit forecast, expecting net profits of $148 million, $174 million, and $201 million for 2025-2027, with corresponding EPS of $0.29, $0.34, and $0.39 [2] - The target price is set at HKD 27.06, based on a 12x target PE for 2025, reflecting the ongoing ramp-up of overseas production capacity [2]