Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company's performance is under pressure due to increased share-based payment expenses, with a revenue of 400 million yuan for the first three quarters of 2025, reflecting a year-on-year increase of 5.0%. However, the net profit attributable to shareholders decreased by 11.5% year-on-year to 64 million yuan [2] - The gross profit margin has declined due to a higher proportion of lower-margin business lines, with a gross margin of 38.71% for the first three quarters of 2025, down 3.97 percentage points year-on-year [3] - The company is making steady progress in market expansion, particularly in the aerospace sector, and has received significant recognition for its products, including new orders for advanced five-axis machining centers [4] Financial Performance Summary - Total revenue for 2023 is projected at 4.52 billion yuan, with a year-on-year growth of 43.37%. The net profit attributable to shareholders is expected to be 1.02 billion yuan, reflecting a year-on-year increase of 69.01% [1] - The company anticipates a decline in net profit for 2025 to 1.21 billion yuan, down from a previous estimate of 1.38 billion yuan, with a corresponding dynamic P/E ratio of 70 [10] - The sales net profit margin for the first three quarters of 2025 was 15.9%, a decrease of 3 percentage points year-on-year, indicating a need for improved cost management [3]

Group 1: Revenue and Profit Performance - The company achieved a revenue of 295 million yuan in H1 2025, representing a year-on-year increase of 15.24% [1] - The net profit attributable to shareholders was 49 million yuan, up 1.27% year-on-year, while the net profit excluding non-recurring items was 36 million yuan, down 7.43% year-on-year [1] - In Q2 2025, the company reported a revenue of 164 million yuan, a year-on-year increase of 5.97%, but the net profit attributable to shareholders decreased by 16.25% [1] Group 2: Gross Margin and Expense Management - The gross margin for H1 2025 was 38.67%, down 4.73 percentage points year-on-year, with Q2 2025 gross margin at 37.72%, down 5.62 percentage points year-on-year [2] - The decline in gross margin was attributed to changes in accounting policies and an increase in the proportion of lower-margin automated production line revenue [2] - The company maintained a good control over operating expenses, with a period expense ratio of 20.4%, a decrease of 0.7 percentage points year-on-year [2] Group 3: Workforce and Cash Flow Improvement - As of the end of H1 2025, the proportion of technical personnel in the company increased to 31%, up 6.90% year-on-year, indicating increased market demand [3] - The net cash flow from operating activities improved to 165 million yuan, a significant recovery from a negative cash flow of 20 million yuan, primarily due to increased cash receipts from sales and government R&D funding [3] Group 4: Market Expansion and Product Recognition - The company is steadily expanding its market presence, particularly in the aerospace sector, establishing partnerships with multiple new users and contributing to domestic machine tool breakthroughs [4] - The company has made significant strides in the civil sector, achieving breakthroughs in low-altitude economy and new energy vehicles, with notable order growth for its DeChuang series products [4] - The company’s products, including the new six-axis five-linkage blade processing center, have gained high recognition from both new and existing customers, reflecting the company's strong technical capabilities [4] Group 5: Profit Forecast and Investment Rating - The company has adjusted its net profit forecasts for 2025-2027 to 138 million yuan (previously 170 million yuan), 187 million yuan (previously 215 million yuan), and 243 million yuan (previously 276 million yuan) [4] - The current stock price corresponds to dynamic P/E ratios of 61, 45, and 34 times for the respective years, maintaining an "overweight" rating due to the company's leading position in the five-axis machine tool sector [4]

Group 1: Kede CNC - Kede CNC is focusing on humanoid robot technology, particularly in motion control technology adaptation and core component manufacturing applications [1] - The company has developed proprietary five-axis machining centers and linear motors to enhance precision and acceleration in manufacturing robot parts [1] - The demand for large aircraft in China is projected to require 8,278 new passenger aircraft from 2024 to 2043, significantly boosting the aviation manufacturing supply chain [1] - Kede CNC's products are applicable in manufacturing core components for large aircraft, including engines and structural parts, and the company has established partnerships with major aviation manufacturers [1] Group 2: Jingbeifang - Jingbeifang is focusing on stablecoin technology and its advantages in cross-border payments, emphasizing improved timeliness and reduced costs [2] - The company plans to enhance communication and collaboration with clients to explore the application of stablecoin technology in various business scenarios [2] - Jingbeifang aims to strengthen partnerships with both financial and non-financial institutions to expand business opportunities while adhering to regulatory requirements [2]