Core Viewpoint - Longying Precision's stock price has experienced a significant fluctuation, with a cumulative increase of 32.59% over three consecutive trading days, prompting the company to clarify its lack of ownership in the robot company Yushu Technology, despite ongoing market speculation about a potential relationship between the two firms [2][5]. Company Summary - Longying Precision has made substantial investments in the humanoid robot components sector, accelerating production capacity and R&D efforts since 2024. The company is developing various materials such as aluminum, magnesium, titanium alloys, and engineering plastics for humanoid robot parts [5]. - In the first half of 2025, Longying Precision's revenue from overseas humanoid robot components exceeded 35 million yuan, a significant increase from 10.11 million yuan in 2024, and the company has secured mass production orders from several domestic humanoid robot brands [5]. - The company has been responding to inquiries on its "Interactive Easy" platform regarding its relationship with Yushu Technology, clarifying that no equity relationship exists, despite repeated questions from investors [2]. Industry Summary - Yushu Technology is preparing to submit its IPO application between October and December 2025, with significant technological advancements, including the announcement of the open-source UnifoLM-WMA-0 architecture designed for general robotic learning [6]. - The humanoid robot industry is gaining traction, shifting focus from mere technological breakthroughs to commercial viability, with client progress and order scale becoming key indicators of competitiveness [6]. - In the first five months of 2025, the financing amount in the robotics sector reached 23.2 billion yuan, surpassing the total of 20.9 billion yuan for the entire year of 2024, indicating a growing interest in the industry [6].

Core Viewpoint - The company, Changying Precision, is experiencing significant growth in its new energy business, with a focus on high-precision and high-performance products, and is expanding its operations in various sectors including robotics and intelligent manufacturing [1][2]. Group 1: New Energy Business - The company has established production bases for its new energy business in Yibin, Zigong, Changzhou, and Ningde, and has been supplying structural components for power and energy storage batteries to CATL for several years [1]. - In the first half of 2025, the new energy business generated revenue of 2.939 billion yuan, representing a year-on-year growth of 37.09% [1]. - Revenue from the new energy business is projected to grow significantly from 11.29 billion yuan in 2021 to 52.14 billion yuan in 2024, with a compound annual growth rate exceeding 66% [2]. Group 2: Robotics and Intelligent Manufacturing - Starting in 2024, the company plans to accelerate the construction of production capacity related to humanoid robots and increase R&D investment [2]. - The company is developing various materials for humanoid robot components, including aluminum, magnesium, titanium alloys, and engineering plastics, utilizing multiple manufacturing processes [2]. - In the first half of 2025, revenue from overseas humanoid robot parts exceeded 35 million yuan, a significant increase from 10.11 million yuan in 2024 [2].

Investment Rating - The report maintains a "Buy" rating for the company [2][7] Core Views - The company achieved a revenue of 8.64 billion yuan in the first half of 2025, representing a year-on-year growth of 12.33%. However, the net profit attributable to shareholders decreased by 29.37% to 306 million yuan, while the net profit excluding non-recurring items increased by 32.18% to 288 million yuan [5][6] - The company is diversifying its product lines, with stable growth in revenue. The consumer electronics segment generated 5.30 billion yuan, while the new energy segment saw a 37.09% increase in revenue to 2.94 billion yuan. The overseas humanoid robot parts revenue exceeded 35 million yuan, compared to 10.11 million yuan for the entire year of 2024 [6] - The company is expanding its capabilities in humanoid robots and servers, which opens up growth opportunities. It has started ramping up production capacity for humanoid robots and has received mass production orders from several domestic and overseas brands. In the server segment, the company has developed high-speed backplane connectors for domestic leading clients and acquired a 51% stake in Shenzhen Weixian Technology Co., Ltd. to enhance its product offerings [6] Financial Summary - The company forecasts revenues of 19.26 billion yuan, 22.16 billion yuan, and 25.26 billion yuan for 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is projected to be 820 million yuan, 1.02 billion yuan, and 1.25 billion yuan for the same years [7][9] - The company’s financial metrics indicate a significant increase in net profit growth rate of 800.24% for 2025, followed by 5.67% and 24.67% for 2026 and 2027, respectively. The earnings per share (EPS) is expected to rise from 0.60 yuan in 2025 to 0.92 yuan in 2027 [9][10]

Group 1 - The core viewpoint of the article highlights that Changying Precision achieved a net profit of 306 million yuan in the first half of 2025, representing a year-on-year decrease of 29.37%, which aligns with expectations [1] - The company is experiencing steady growth in the consumer electronics and new energy sectors, with accelerated capacity construction in humanoid robots [1] - In the humanoid robot sector, due to early strategic positioning, the company generated over 35 million yuan in revenue from overseas humanoid robot components in the first half of 2025, compared to only 10.11 million yuan for the entire year of 2024 [1] Group 2 - The report indicates that the new energy industry will continue to maintain rapid growth and innovative transformation trends against the backdrop of global energy transition and green development [1] - In the field of embodied intelligent humanoid robots, catalyzed by generative artificial intelligence and large language models, commercial applications have begun, potentially becoming a disruptive product following computers, smartphones, and new energy vehicles, profoundly changing human production and lifestyle [1] - The company maintains a "buy" rating based on its performance and growth prospects [1]

Core Viewpoint - The company reported a mixed performance in H1 2025, with revenue growth driven by stable performance in consumer electronics and significant growth in the new energy sector, while net profit declined due to last year's one-time investment gains [1][2]. H1 Performance Summary - Revenue reached 8.64 billion, up 12.3% year-on-year - Net profit attributable to shareholders was 310 million, down 29.4% year-on-year - Non-recurring net profit was 290 million, up 32.2% year-on-year - Gross margin was 18.8%, up 0.8 percentage points year-on-year - Net margin was 4.0%, down 2 percentage points year-on-year - Excluding last year's investment gain of 180 million from Guangdong Tianji, net profit would have increased by approximately 24% year-on-year [1]. H1 Business Structure - Consumer Electronics: Revenue of 5.304 billion, up 1.5% year-on-year, with a gross margin of 20.3%, up 2.1 percentage points year-on-year. The company made significant breakthroughs in developing key components for AI PCs and wearable products [2]. - New Energy: Revenue of 2.938 billion, up 37.1% year-on-year, with a gross margin of 14.4%, down 2.5 percentage points year-on-year. The company’s production capacity in various locations contributed to rapid revenue growth and increased market share [2]. - Robotics: Overseas humanoid robot parts revenue exceeded 35 million, compared to 10.11 million for the entire previous year. The company also secured multiple mass production orders from domestic humanoid robot brands [2]. Outlook for 2025-2026 - Continued growth in consumer electronics and new energy sectors, coupled with optimized management capabilities, is expected to further enhance profitability. New projects in consumer electronics, such as AI Phone and AI glasses, are anticipated to drive additional revenue [3]. - The company is strategically positioned in the robotics sector, establishing partnerships with leading domestic and international humanoid robot companies, which may lead to becoming a key component supplier [3]. - Revenue projections for 2025-2027 are 19.47 billion, 22.40 billion, and 25.76 billion, with net profits of 790 million, 1.01 billion, and 1.30 billion, respectively. The current PE ratios are 45.5, 35.5, and 27.4 [3].

Investment Rating - The investment rating for the company is "Accumulate" [3]. Core Insights - The company reported a revenue of 8.64 billion yuan in H1, a year-on-year increase of 12.3%, while the net profit attributable to shareholders decreased by 29.4% to 310 million yuan. Excluding last year's one-time investment gain, the net profit would have increased by approximately 24% [6]. - The growth in revenue is attributed to stable performance in the consumer electronics sector, significant growth in the new energy sector, and contributions from the robotics business [6]. - The company has established partnerships with leading domestic and international robotics firms, positioning itself advantageously in the robotics sector [6]. Financial Data and Valuation - Total revenue is projected to reach 13.72 billion yuan in 2023, with a year-on-year decline of 10%, followed by a recovery with a growth of 23% in 2024 [2][14]. - Operating profit is expected to surge to 947 million yuan in 2024, reflecting a growth of 491% compared to 2023 [2][14]. - The net profit attributable to shareholders is forecasted to be 772 million yuan in 2024, an increase of 800% year-on-year [2][14]. - The company’s PE ratio is projected to decrease from 417.3 in 2023 to 27.4 by 2027, indicating an improving valuation over time [2][14]. Business Structure and Outlook - The consumer electronics segment generated 5.304 billion yuan in revenue, a 1.5% increase year-on-year, while the new energy segment saw a 37.1% increase to 2.938 billion yuan [6]. - The robotics segment has shown significant growth, with overseas humanoid robot component revenue exceeding 35 million yuan in H1, compared to 10.11 million yuan for the entire previous year [6]. - The company is expected to benefit from AI innovations in consumer electronics and continuous order releases in the new energy sector, which will enhance profitability [6]. Investment Recommendations - The long-term outlook for the company remains positive, with expectations of revenue growth driven by consumer electronics and new energy sectors, alongside strategic positioning in the robotics market [6]. - The forecast for revenue from 2025 to 2027 is 19.47 billion yuan, 22.40 billion yuan, and 25.76 billion yuan respectively, with net profits projected at 790 million yuan, 1.01 billion yuan, and 1.30 billion yuan [6].

Core Insights - The humanoid robot sector is gaining global attention, particularly with the upcoming launch of the first humanoid robot from the collaboration between Nvidia and Foxconn, which enhances the industry's attractiveness [1] - Changying Precision's 2025 semi-annual report highlights a surge in overseas orders for humanoid robots, indicating a strong market response [1][2] Group 1: Revenue Growth - Changying Precision reported overseas revenue from humanoid robot components exceeding 35 million yuan in the first half of 2025, a significant increase from 10.11 million yuan for the entire year of 2024, showcasing a multi-fold growth in just six months [2] - The company has accelerated the construction of humanoid robot-related production capacity and increased R&D investment since 2024, leading to substantial achievements in the sector [2] Group 2: Technological Capabilities - Changying Precision has developed capabilities to produce various material components for humanoid robots, including aluminum, magnesium, titanium alloys, and engineering plastics like PEEK and IGUS, as well as rubber, silicone, nylon, and fiber fabrics [2] - The company employs advanced manufacturing techniques such as CNC, 3D printing, die-casting, injection molding, gear hobbing, and hot pressing to provide critical components for humanoid robots [2] Group 3: Client Relationships and Market Potential - The primary overseas clients for Changying Precision's humanoid robot components are two leading North American companies, T Company and F Company, both of which have begun mass production of their humanoid robots [3] - T Company aims to produce 5000 units this year, with a long-term goal of 1 million units annually, indicating significant growth potential for Changying Precision as a parts supplier [3] - F Company's BotQ factory, which integrates supply chains and AI capabilities, has an annual production capacity of 12,000 units, with plans to expand to 100,000 units per year over the next four years, further benefiting Changying Precision [3] - The company has also secured mass production orders from multiple domestic humanoid robot brands, diversifying its client base and enhancing its influence in the global humanoid robot market [3]