Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 25.8 CNY [2][8]. Core Views - The company's revenue for the first half of 2025 was 2.8 billion CNY, a year-on-year decrease of 9%, with a net profit attributable to shareholders of 0.13 billion CNY, down 84% year-on-year [2][8]. - The company's performance is under pressure due to external factors, particularly in overseas markets, but there are expectations for marginal improvements in the future [2][8]. - The domestic market shows signs of recovery, with the company's main operations achieving a net profit of 0.80 billion CNY, reflecting a 10% year-on-year increase [2][8]. Financial Summary - Total revenue projections for 2024A, 2025E, 2026E, and 2027E are 6,247 million CNY, 6,275 million CNY, 7,038 million CNY, and 7,467 million CNY respectively, with growth rates of 22.5%, 0.4%, 12.2%, and 6.1% [4][9]. - Net profit attributable to shareholders is projected to be 115 million CNY in 2024A, 87 million CNY in 2025E, 231 million CNY in 2026E, and 256 million CNY in 2027E, with corresponding growth rates of 128.2%, -24.6%, 166.9%, and 10.8% [4][9]. - The company's earnings per share (EPS) is expected to be 0.37 CNY in 2024A, 0.28 CNY in 2025E, 0.74 CNY in 2026E, and 0.82 CNY in 2027E [4][9]. Market Performance - The company's stock price has shown fluctuations, with a 12-month high of 29.61 CNY and a low of 20.01 CNY [5][9]. - The company is positioned as a benchmark in the integrated die-casting industry, with expectations for performance recovery in the latter half of the year and into the next [2][8].

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, primarily due to losses from its French subsidiary, Bailian Group, while its main operations showed stability and growth in certain segments [2][3]. Revenue Summary - In H1 2025, the company's total revenue was 2.8 billion yuan, a year-on-year decrease of 8.88%. The revenue for Q2 2025 was 1.53 billion yuan, down 4.0% year-on-year but up 20.6% quarter-on-quarter [2][3]. - The main operations (excluding Bailian Group) achieved revenue of 1.599 billion yuan in H1 2025, remaining stable compared to the previous year. Revenue from body structure components increased by 13.43% to 756 million yuan, driven by the release of large integrated body component orders [3]. Profit Summary - The net profit attributable to the parent company in H1 2025 was 13 million yuan, a significant decline of 83.98% year-on-year, mainly due to losses from Bailian Group. The main operations reported a net profit of 80 million yuan, an increase of 9.95% year-on-year, supported by cost reduction and efficiency improvement measures [3]. - In Q2 2025, the net profit attributable to the parent company was 10 million yuan, with the main operations contributing 50 million yuan, reflecting the benefits of scale effects and cost management [3]. Expense Summary - The company's expense ratios for sales, management, R&D, and financial costs in H1 2025 were 4.9%, 3.8%, 5.1%, and -1.0%, respectively, showing a year-on-year improvement in expense structure, which supports profitability [4]. Strategic Developments - The company is deepening its high-end customer and product strategy, with significant breakthroughs in core business areas. The Anhui factory's capacity for large integrated body components was released in June, and the company is accelerating its global capacity layout [5]. - The fifth-generation smart factory in Anhui has commenced production, integrating super die-casting units and AI visual inspection technology, enhancing the manufacturing capabilities for integrated castings [5]. Customer and Market Outlook - The company is a core supplier for Huawei's Seres, with significant vehicle deliveries expected from new models. The ramp-up of core customer models and new project launches starting in 2025 is anticipated to drive capacity utilization and improve performance [6]. - The company is positioned as a pioneer in integrated die-casting, actively engaging with leading new energy vehicle manufacturers, with a strong order backlog expected to support gradual performance improvement [7]. Financial Projections - The company has adjusted its earnings forecast, expecting revenues of 6.42 billion yuan, 7.80 billion yuan, and 9.54 billion yuan for 2025, 2026, and 2027, respectively. Net profits are projected to be 127 million yuan, 288 million yuan, and 435 million yuan for the same years [10].