Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's performance in H1 2025 met expectations, with revenue of 4.23 billion yuan, a year-on-year decrease of 2.2%, and a net profit attributable to shareholders of 580 million yuan, a year-on-year increase of 22% [1][2] - The growth in the smart actuator and reducer segments is notable, with revenues of 430 million yuan and 350 million yuan respectively, reflecting year-on-year increases of 52% and 36% [2] - The company is actively expanding its global footprint, with stable deliveries to international clients and strategic capacity expansions in Hungary and Vietnam [3] Financial Performance - For 2025, the company is projected to achieve revenues of 10.67 billion yuan, with a year-on-year growth rate of 21.5% [4] - The net profit attributable to shareholders is expected to reach 1.26 billion yuan in 2025, representing a year-on-year growth of 23% [4] - The company's gross margin for Q2 2025 was reported at 27.3%, showing a quarter-on-quarter increase of 0.47 percentage points [2] Business Segments - The automotive gear segment for passenger vehicles, construction machinery, and commercial vehicles generated revenues of 2.7 billion yuan, 350 million yuan, and 320 million yuan respectively, with growth rates of 13%, 12%, and a decline of 30% [2] - The company has become a core supplier for leading brands in the smart cleaning machine and e-bike sectors, marking significant contributions to its business growth [3] Profitability and Valuation - The company is expected to maintain strong competitive advantages in its core business, with projected net profits of 1.26 billion yuan, 1.55 billion yuan, and 1.87 billion yuan for 2025, 2026, and 2027 respectively, corresponding to P/E ratios of 25, 21, and 17 times [3][4]

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company's performance in Q1 2025 met expectations, with revenue of 2.06 billion yuan, showing a year-on-year increase of 12.5% in core business revenue after excluding other businesses [1]. - The profitability indicators for Q1 2025 were strong, with a gross margin of 26.8% and a net margin of 14.0%, reflecting year-on-year increases of 4.2 percentage points and 2.9 percentage points, respectively [1]. - The company is benefiting from cost reduction and efficiency improvement initiatives, which are expected to continue driving performance [1][2]. Financial Performance Summary - Revenue is projected to grow from 8.074 billion yuan in 2023 to 15.039 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 17.8% [3]. - Net profit is expected to increase from 816 million yuan in 2023 to 1.868 billion yuan in 2027, with a CAGR of about 20.4% [3]. - The earnings per share (EPS) is forecasted to rise from 0.96 yuan in 2023 to 2.20 yuan in 2027 [3]. Business Development - The company is expanding its global footprint, particularly in the new energy transmission gear business, which is expected to enhance the value per vehicle significantly [2]. - Collaborations with leading domestic manufacturers in the smart home and automotive sectors are expected to drive growth in the smart actuator business [2]. - The company has established stable delivery of projects for international clients, which is anticipated to accelerate growth beyond the industry average [2].