Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 142.7 CNY, compared to the current price of 125.68 CNY [5][6]. Core Insights - The company has returned to a growth trajectory, achieving a revenue of 1.63 billion CNY in H1 2025, representing a year-over-year increase of 1.6%. The net profit attributable to the parent company reached 90 million CNY, a significant year-over-year increase of 2062.3% [2][9]. - In Q2 2025, the company reported a revenue of 820 million CNY, with a year-over-year growth of 5.4%, indicating a clear improvement trend [2][9]. - The core business of complete machines and accessories generated 1.49 billion CNY in revenue during H1 2025, showing a slight decline of 0.4% year-over-year, primarily due to poor performance in overseas markets, which saw a year-over-year decrease of 10.9%. However, domestic market performance remained stable with a year-over-year increase of 1.3% [9]. - The company benefited from the incubation growth of non-core businesses, which saw a year-over-year increase of 314.9% [9]. - The overall gross margin improved significantly, reaching 33.3% in H1 2025, an increase of 4.2 percentage points year-over-year. The gross margin for Q2 2025 was 32.6%, up 2.4 percentage points year-over-year [9]. - The net profit margin for H1 2025 was 5.5%, an increase of 5.2 percentage points year-over-year, with Q2 2025 showing a net profit margin of 3.2%, marking a turnaround from the previous year [9]. Financial Summary - The company is projected to achieve total revenue of 3.777 billion CNY in 2025, with a year-over-year growth rate of 10.9%. The net profit attributable to the parent company is expected to reach 237 million CNY, reflecting a year-over-year growth of 97.5% [4][10]. - Earnings per share (EPS) are forecasted to be 3.39 CNY in 2025, with a price-to-earnings (P/E) ratio of 37 [4][10]. - The company’s total assets are projected to grow from 5.319 billion CNY in 2024 to 6.527 billion CNY by 2027 [10].

Investment Rating - The investment rating for the company is maintained at "Buy-A" with a target price of 160.97 CNY for the next six months [5]. Core Insights - The company reported a revenue of 1.63 billion CNY for the first half of 2025, reflecting a year-on-year increase of 1.6%, and a net profit attributable to shareholders of 90 million CNY, showing a significant year-on-year increase of 2062.3% [1][2]. - In Q2 2025, the company achieved a revenue of 820 million CNY, up 5.4% year-on-year, and a net profit of 30 million CNY, compared to a loss of 10 million CNY in the same period last year [1][2]. - The company is expected to see continued revenue improvement due to the gradual recovery of domestic consumption and the ramp-up of new products [1]. Revenue Growth - The company launched several new products in the first half of 2025, including the portable projector Play 6 and the flagship home series RS 20, which helped solidify its market share in entry-level products and enhance its mid-to-high-end laser projection product matrix [1]. - Domestic revenue increased by 1.3% year-on-year in the first half of 2025, while overseas revenue decreased by 10.9% year-on-year [1]. Profitability Improvement - In Q2 2025, the company's net profit margin improved by 4.5 percentage points year-on-year, attributed to optimized product matrix and cost control measures [2]. - The gross profit margin increased by 2.4 percentage points year-on-year, and the sales expense ratio decreased by 3.8 percentage points [2]. Financial Projections - The company is projected to achieve earnings per share (EPS) of 2.98 CNY, 3.28 CNY, and 3.51 CNY for the years 2025, 2026, and 2027 respectively [2][4]. - The estimated price-to-earnings (PE) ratio for 2025 is 54 times [2].

Investment Rating - The report maintains a "Recommend" rating for Sichuan Jiuzhou (000801) [1] Core Views - The company achieved significant growth in Q2, with a focus on the low-altitude sector, aiming to establish a viable commercial ecosystem [1] - The company has signed strategic agreements with multiple enterprises to actively participate in low-altitude management and infrastructure development [6] - The report highlights the potential for third-party low-altitude inspection and testing services, indicating a strategic opportunity for the company [6] Financial Performance Summary - Total revenue for 2024A is projected at 4,178 million, with a year-on-year growth rate of 9.0%, increasing to 6,209 million by 2027E with a growth rate of 16.6% [2] - The net profit attributable to the parent company is expected to be 194 million in 2024A, with a decline of 3.0%, and is projected to grow to 333 million by 2027E, with a growth rate of 21.2% [2] - Earnings per share (EPS) is forecasted to increase from 0.19 in 2024A to 0.33 in 2027E [2] Business Segment Performance - In H1 2025, the smart terminal products generated revenue of 11.82 billion, a growth of 3.72%, while air traffic management products achieved 4.61 billion, growing by 10.07% [6] - The company’s subsidiary, Sichuan Jiuzhou Air Traffic Management Technology, reported a net profit of 0.46 billion in H1 2025 [6] Strategic Initiatives - The company is focusing on low-altitude economic development, with plans to enhance its testing capabilities and establish model projects in low-altitude infrastructure [6] - Collaborations with logistics companies like SF Express aim to create a new ecosystem for low-altitude logistics [6]

Investment Rating - The report assigns a "Buy-A" rating to Hisense Visual Technology, indicating a positive outlook for the company's stock performance in the next 6-12 months [5]. Core Insights - Hisense Visual Technology reported a total revenue of 27.231 billion yuan for H1 2025, representing a year-over-year increase of 6.95%, and a net profit attributable to shareholders of 1.056 billion yuan, up 26.63% year-over-year [2]. - The company has seen significant growth in its market share for Miniled and high-end products, with retail volume and revenue shares reaching 33.95% and 34.98% respectively for Miniled products, and 43.15% and 34.88% for high-end televisions [3]. - The global market for Hisense televisions in the 98-inch and above category has grown by 85.29%, with Miniled product shipments increasing by 108.24% year-over-year [3]. Financial Performance - For H1 2025, the company's gross margin was 16.37%, an increase of 0.56 percentage points year-over-year, while the net profit margin was 3.88%, up 0.6 percentage points [4]. - The projected revenues for 2025-2027 are 63.145 billion yuan, 67.783 billion yuan, and 73.4 billion yuan, with year-over-year growth rates of 7.9%, 7.3%, and 8.3% respectively [5]. - The expected net profits for the same period are 2.592 billion yuan, 2.843 billion yuan, and 3.141 billion yuan, with growth rates of 15.4%, 9.7%, and 10.5% [5]. Valuation Metrics - The report estimates the earnings per share (EPS) for 2025-2027 to be 1.99 yuan, 2.18 yuan, and 2.41 yuan, corresponding to price-to-earnings (P/E) ratios of 10.9, 10, and 9 respectively [5]. - The company's valuation is considered low, with a projected price-to-book (P/B) ratio decreasing from 1.5 in 2023 to 1.1 in 2027 [9].

Investment Rating - The investment rating for Hisense Visual is maintained at "Buy-A" with a target price of 27.98 CNY for the next six months [6][3]. Core Views - Hisense Visual reported a revenue of 27.23 billion CNY for H1 2025, representing a year-over-year increase of 7.0%, and a net profit of 1.06 billion CNY, up 26.6% YoY. In Q2 alone, revenue reached 13.86 billion CNY, with a YoY growth of 8.6%, and net profit of 500 million CNY, reflecting a 36.7% increase YoY [1][2]. - The company benefits from the domestic "old-for-new" policy, which stimulates demand in the television industry. Hisense, as a leading player, has seen a 24% YoY increase in domestic television retail sales in Q2 2025 [2]. - The company's gross profit margin improved by 1.4 percentage points YoY in Q2, driven by the sales of mid-to-high-end products like Mini LED TVs and supply chain optimization [2]. Financial Performance Summary - For 2025, the expected earnings per share (EPS) are projected to be 2.15 CNY, with net profits forecasted at 2.81 billion CNY, reflecting a growth rate of 25.0% [3][4]. - The company’s revenue is expected to grow from 53.62 billion CNY in 2023 to 73.06 billion CNY by 2027, indicating a steady growth trajectory [4][13]. - The net profit margin is projected to improve from 3.9% in 2023 to 4.7% in 2027, showcasing enhanced profitability [9][13].

Quantitative Models and Construction Methods 1. Model Name: Quantitative Market Trend Judgment Framework - **Model Construction Idea**: The framework identifies the dominant market style by comparing asset characteristics based on their intrinsic attributes and industry life cycle stages. It evaluates assets using the priority sequence of growth (g) > return on equity (ROE) > dividend yield (D) to determine the most advantageous sectors[5][6][7] - **Model Construction Process**: - Classifies assets into five style stages: external growth, quality growth, quality dividend, value dividend, and distressed value[5] - Prioritizes mainstream assets (actual growth, expected growth, profitability) over secondary assets, with secondary asset priority determined by crowding levels[7] - Uses metrics such as Δg (actual growth momentum), Δgf (expected growth momentum), PB-ROE (valuation), and DP (dividend yield) to evaluate and rank assets[6][7] - **Model Evaluation**: The framework has demonstrated strong explanatory power for A-share market style rotations since 2009, achieving an annualized return of 26.85%[14] --- Quantitative Factors and Construction Methods 1. Factor Name: Actual Growth (g) - **Factor Construction Idea**: Measures the momentum of actual growth by evaluating the change in net profit growth rates (Δg)[18] - **Factor Construction Process**: - Calculates the spread between the top and bottom quintiles of industries based on net profit growth rates[18] - Δg > 0 indicates strengthening growth momentum, while Δg < 0 signals weakening momentum[18] 2. Factor Name: Expected Growth (gf) - **Factor Construction Idea**: Captures analysts' optimism by assessing changes in expected net profit growth rates (Δgf)[21] - **Factor Construction Process**: - Similar to Δg, calculates the spread between the top and bottom quintiles of industries based on expected net profit growth rates[21] - Δgf > 0 indicates increasing optimism, while Δgf < 0 suggests declining optimism[21] 3. Factor Name: Profitability (ROE) - **Factor Construction Idea**: Evaluates asset quality by combining ROE with valuation metrics (PB-ROE)[22] - **Factor Construction Process**: - Ranks industries based on ROE and PB-ROE residuals[30] - Identifies high ROE industries with low valuations for allocation[30] 4. Factor Name: Quality Dividend (DP+ROE) - **Factor Construction Idea**: Combines dividend yield (DP) and ROE to identify high-quality dividend-paying industries[33] - **Factor Construction Process**: - Scores industries based on DP and ROE, selecting the highest-scoring sectors for allocation[33] 5. Factor Name: Value Dividend (DP+BP) - **Factor Construction Idea**: Combines dividend yield (DP) and book-to-price ratio (BP) to identify undervalued dividend-paying industries[36] - **Factor Construction Process**: - Scores industries based on DP and BP, selecting the highest-scoring sectors for allocation[36] 6. Factor Name: Distressed Value (PB+SIZE) - **Factor Construction Idea**: Identifies distressed industries with low price-to-book ratios (PB) and small market capitalization (SIZE)[38] - **Factor Construction Process**: - Scores industries based on PB and SIZE, selecting the lowest-scoring sectors for allocation[38] --- Backtesting Results of Models and Factors 1. Quantitative Market Trend Judgment Framework - **Annualized Return**: 26.85% since 2009[14] - **Excess Returns**: Positive in most years, with notable outperformance in 2020 (44%), 2021 (38%), and 2022 (62%)[15] 2. Actual Growth Factor - **Recent Performance**: Δg turned negative, indicating weakening growth momentum and reduced opportunities for actual growth strategies[18] 3. Expected Growth Factor - **Recent Performance**: Δgf turned negative, signaling a halt in analysts' optimism and limited opportunities for expected growth strategies[21] 4. Profitability Factor - **Recent Performance**: ROE advantage continues to decline, but reduced crowding levels suggest potential opportunities in a weakening growth environment[22][24] 5. Quality Dividend Factor - **Recent Performance**: Outperformed in 2016, 2017, and 2023; recent recommendations include sectors like "Other Home Appliances" and "Service Robots"[33] 6. Value Dividend Factor - **Recent Performance**: Outperformed in 2009, 2017, and 2021-2023; recent recommendations include sectors like "Pet Food" and "Security"[36] 7. Distressed Value Factor - **Recent Performance**: Outperformed in 2015-2016 and 2021-2023; recent recommendations include sectors like "Other Electronic Components" and "Printing and Dyeing"[38]