Investment Rating - The investment rating for the company is "Outperform the Market" [6][28]. Core Views - The company's revenue is showing stable growth, with a 14.6% increase in H1 2025, reaching 960 million, while net profit decreased by 28.0% to 100 million [1][3]. - The company is experiencing a recovery in its core business, with household shield pumps revenue growing by 5.8% to 360 million, and energy-saving pumps seeing over 20% growth in revenue [1][2]. - New business segments, particularly in liquid cooling, are expanding, with a 105% increase in revenue to 70 million in H1 2025, driven by partnerships with major clients [2][3]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 960 million, a 14.6% increase year-on-year, while net profit was 100 million, down 28.0% [1]. - Q2 2025 revenue was 580 million, reflecting a 3.5% increase, but net profit fell by 37.9% to 60 million due to high base effects from the previous year [1]. - The gross margin for H1 2025 decreased by 3.5 percentage points to 27.0% [3]. Business Segments - Household shield pumps revenue increased by 5.8% to 360 million, with domestic sales slightly declining but foreign sales recovering post-inventory destocking [1]. - Agricultural pump revenue rebounded with a 17.6% increase to 340 million, while industrial pumps grew over 20% to 180 million [2]. - Liquid cooling pumps revenue surged by 105% to 70 million, benefiting from increased demand in the electric vehicle and energy storage sectors [2]. Profitability and Forecast - The company adjusted its profit forecast, expecting net profits of 260 million, 320 million, and 380 million for 2025, 2026, and 2027 respectively, reflecting a year-on-year growth of 1%, 23%, and 19% [3][4]. - The price-to-earnings ratio (PE) is projected to be 33, 27, and 23 for the years 2025, 2026, and 2027 [4].

Investment Rating - The investment rating for the company is "Buy" with a 6-month outlook maintained [5]. Core Views - The company reported a revenue of 960 million yuan for H1 2025, a year-on-year increase of 14.6%, while the net profit attributable to the parent company was 100 million yuan, a decrease of 28.0% [1][2]. - The company plans to distribute a cash dividend of 5 yuan per 10 shares, with a payout ratio of 81.7% [1]. - The liquid cooling pump market is expected to grow significantly, driven by the expansion of computing power and the need for efficient cooling solutions in data centers [3]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 580 million yuan, a year-on-year increase of 3.5%, with a net profit of 60 million yuan, down 37.9% [1][2]. - The gross margin for Q2 2025 was 27.0%, a decrease of 1.2 percentage points year-on-year, attributed to a lower proportion of high-margin household shield pumps [2]. - The company’s net profit margin for Q2 2025 was 10.5%, down 7 percentage points year-on-year, primarily due to the absence of significant asset disposal gains compared to the previous year [2]. Business Segments - The agricultural pump segment generated approximately 340 million yuan in revenue, up 17.6% year-on-year [2]. - The household shield pump segment achieved revenue of about 360 million yuan, a growth of 5.8% year-on-year, while energy-saving pumps saw sales close to 150 million yuan, increasing over 20% [2]. - The industrial pump segment reported revenue of approximately 180 million yuan, with a growth of over 20% [2]. - The liquid cooling temperature control products generated about 70 million yuan in revenue, marking a significant growth of 105% year-on-year [2]. Market Outlook - The liquid cooling pump is positioned as a key component in the rapidly growing AI computing infrastructure, with potential for substantial market share capture due to superior technology [3]. - The company is collaborating with downstream customers to innovate and iterate on shielded liquid cooling solutions, enhancing its competitive edge [3]. Financial Projections - The projected net profit for the company is adjusted to 210 million yuan, 250 million yuan, and 300 million yuan for the years 2025, 2026, and 2027 respectively, with corresponding dynamic P/E ratios of 39.1x, 32.4x, and 27.3x [3].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6][18]. Core Views - The household segment has returned to growth, although profitability is under short-term pressure. In 2024, the company achieved operating revenue of 1.91 billion yuan, a year-on-year increase of 1.57%, while net profit attributable to the parent company was 260 million yuan, a decrease of 10.55% [1][3]. - New businesses and scenarios are experiencing rapid growth, with traditional business showing fluctuations. The agricultural pump business is expected to generate approximately 600 million yuan in revenue, a decline of about 3.8%, while the household segment's main products are projected to generate around 720 million yuan, down about 6.5% [2][4]. - The liquid cooling pump market is anticipated to grow significantly, driven by the expansion of AI computing power and the need for efficient cooling solutions in data centers and electric vehicles [4]. Summary by Sections Financial Performance - In 2024, the company reported a gross margin of 29.7%, down 1.5 percentage points year-on-year. The first quarter of 2025 saw a gross margin of 27.0%, a decrease of 8.9 percentage points year-on-year [3][5]. - The company plans to distribute a cash dividend of 2 yuan per 10 shares, totaling 32.95 million yuan, which represents 45% of the net profit attributable to the parent company for 2024 [1][5]. Revenue and Profit Forecast - The company forecasts net profits attributable to the parent company for 2025, 2026, and 2027 to be 268.37 million yuan, 325.16 million yuan, and 381.47 million yuan, respectively [5][6]. - The expected revenue growth rates for the upcoming years are 14.81% for 2025, 14.50% for 2026, and 13.76% for 2027 [5][6]. Market Position and Strategy - The company is positioned as a leader in the domestic shielding pump market, with a comprehensive product matrix including household, industrial, and liquid cooling pumps. It is expected to leverage its technological advantages and market expansion capabilities [4][6]. - The company has a dividend payout plan for 2025-2027, committing to distribute no less than 20% of the distributable profits in cash each year, contingent on meeting cash dividend conditions [1][5].