Investment Rating - The report maintains an "Outperform the Market" rating for Fuda Co., Ltd. [4][6][20] Core Views - Fuda Co., Ltd. has shown stable growth in its main business areas, including crankshafts and gears, while also expanding its robotics segment, particularly in planetary gear reducers and screw drives [4][20] - The company achieved a revenue of 940 million yuan in the first half of 2025, representing a year-on-year increase of 30.3%, and a net profit of 146 million yuan, up 98.8% year-on-year [9][18] - The report highlights the successful development and mass production of new products in the hybrid crankshaft and electric drive gear sectors, indicating strong demand from major clients [2][20] Financial Performance Summary - In Q2 2025, Fuda Co., Ltd. reported a revenue of 466 million yuan, a year-on-year increase of 16.8%, and a net profit of 81 million yuan, up 93.3% year-on-year [9][18] - The gross margin for Q2 2025 was 28.5%, an increase of 4.9 percentage points year-on-year, reflecting improved profitability driven by scale effects and cost control measures [13][18] - The company forecasts net profits of 300 million, 390 million, and 490 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 0.47, 0.60, and 0.76 yuan [4][5][20] Business Development Summary - Fuda Co., Ltd. has accelerated its product development in the hybrid crankshaft sector, completing nine new product developments for clients such as Li Auto and BYD [2][20] - The robotics division is advancing with multiple product models in the planetary gear reducer business, with one product entering small batch delivery and two in sample testing [3][18] - The company has successfully established a high-precision production line for planetary screw drives, significantly enhancing its production capacity [3][18]

Investment Rating - The report initiates coverage with a "Buy" rating for the company, indicating a potential stock price increase of 5% to 15% over the next six months [3][5]. Core Insights - The company, Fuda Co., Ltd. (603166), is a leading manufacturer of automotive crankshafts and is expanding into humanoid robotics, which is expected to create a second growth curve [2][3]. - In the first half of 2025, the company achieved revenue of 937 million yuan, a year-on-year increase of 30.26%, and a net profit attributable to shareholders of 146 million yuan, up 98.77% year-on-year [1][2]. - The growth in revenue is primarily driven by an increase in high-value products such as new energy hybrid crankshafts and electric drive gears, leading to significant improvements in gross and net profit margins [1][2]. Financial Performance - For Q2 2025, the company reported revenue of 466 million yuan, a year-on-year increase of 16.83%, with a net profit of 81 million yuan, up 93.28% year-on-year [1]. - The gross margin for Q2 was 28.49%, an increase of 1.37 percentage points year-on-year, while the net margin was 17.41%, up 6.89 percentage points year-on-year [1]. - The company is expected to achieve net profits of 301 million yuan, 415 million yuan, and 551 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 40, 29, and 22 times [3][4]. Business Strategy - The company has a unique integrated capability in both blank forging and crankshaft processing, providing a significant cost advantage and leading profitability compared to peers [2]. - Collaborations with institutions like Tsinghua University enhance the company's R&D capabilities, and it has established strong relationships with major automotive manufacturers [2]. - The company is also investing in the humanoid robotics sector, having developed a planetary reducer for robots and planning to establish a joint venture to expand its robotics components business [2].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a significant increase in its half-year performance, with a revenue of 937 million yuan for H1 2025, representing a year-on-year growth of 30.3%, and a net profit of 146 million yuan, up 98.8% year-on-year [4][5] - The growth in revenue is primarily driven by the strong demand for hybrid crankshafts in the passenger vehicle sector, despite a slight decline in quarter-on-quarter performance due to inventory adjustments by major clients [6] - The company is expanding its production capacity in the robotics sector, with new projects expected to contribute positively in the second half of the year [6] Financial Data and Profit Forecast - The company forecasts total revenue of 2,545 million yuan for 2025, with a year-on-year growth rate of 54.5% [5] - The projected net profit for 2025 is 331 million yuan, reflecting a growth rate of 78.9% [5] - The earnings per share (EPS) is expected to be 0.51 yuan for 2025, with a projected price-to-earnings (PE) ratio of 34x [5] Business Development - The company has successfully achieved full production capacity for its high-precision screw production line, which is expected to enhance product quality and reduce costs [6] - The robotics business is being positioned as a strategic growth area, with ongoing efforts to develop and deliver planetary gear reducers and linear actuators [6] - The company aims to strengthen its market position in hybrid crankshafts while diversifying its client base to mitigate revenue volatility from individual customers [6]

Core Viewpoint - Fuda Co., Ltd. has demonstrated stable growth in its operating performance, with significant increases in revenue and net profit in the first half of 2025 [2][3]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 937 million yuan, a year-on-year increase of 30.26% [2]. - The net profit for the same period was 146 million yuan, reflecting a year-on-year growth of 98.77% [2]. - The net profit margin improved from 10.23% in the first half of 2024 to 15.61% in 2025 [2]. - The gross profit margin increased from 24.04% to 27.8% during the same period [2]. - The return on equity reached 5.95%, up by 2.66 percentage points year-on-year [2]. - The net cash flow from operating activities was 282 million yuan, marking an 81.28% increase [2]. - The cash on hand at the end of the period was 238 million yuan, a 47.57% increase [2]. Business Drivers - The growth in revenue is attributed to increased demand for passenger car crankshafts, particularly in the hybrid power sector [2]. - The company has focused on quality improvement and cost reduction, leading to enhanced efficiency [2]. - The transfer of a 25% stake in a joint venture has optimized resource allocation and increased investment income [2]. Industry Position - Fuda Co., Ltd. primarily engages in the research, production, and sales of crankshafts, precision forgings, and other components for various machinery [3]. - The company has transitioned towards the new energy vehicle sector, with a focus on hybrid crankshafts and electric drive gears [3]. - Fuda is a key supplier of hybrid crankshafts to major automotive manufacturers such as BYD, Geely, and Great Wall [3]. Market Performance - As of August 11, the company's stock price was 17.7 yuan per share, with a year-to-date increase of over 146.86% [4].

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company is expected to achieve a net profit attributable to shareholders of 145 to 155 million yuan for the first half of 2025, representing a year-on-year increase of 97.1% to 110.7% [5] - The company has officially reached production capacity of 30,000 sets of screw rods, which is a significant milestone for its robotics business [7] - The company has adjusted its profit forecast for 2025 to 331 million yuan, up from a previous estimate of 311 million yuan, reflecting strong growth in its traditional business and potential in robotics [7] Financial Data and Earnings Forecast - Total revenue is projected to grow from 1,648 million yuan in 2024 to 2,545 million yuan in 2025, with a year-on-year growth rate of 54.5% [6] - The net profit attributable to shareholders is expected to increase from 185 million yuan in 2024 to 331 million yuan in 2025, with a year-on-year growth rate of 78.9% [6] - The company's earnings per share is forecasted to rise from 0.29 yuan in 2024 to 0.51 yuan in 2025 [6]

Core Viewpoint - Fuda Co., Ltd. plans to establish a wholly-owned subsidiary, Guilin Fuda Drive Technology Co., Ltd., to take over the business of its existing subsidiary, New Energy Electric Drive, which will be subsequently deregistered [1][2] Group 1: Company Restructuring - The establishment of Guilin Fuda and the deregistration of New Energy Electric Drive will help the company optimize resource allocation and improve operational efficiency [2] - The new subsidiary will have independent legal status, facilitating related production and operational activities [2] - The transfer of employees from the New Energy Electric Drive to the new subsidiary will be conducted in accordance with national laws and regulations [2] Group 2: Financial Impact - The assets being contributed to the new subsidiary are valued at 475 million yuan (including tax) as per the asset evaluation report [1] - The contribution will consist of 470 million yuan allocated to the registered capital of the new subsidiary, with the remaining amount going to capital reserves [1] - The restructuring will not lead to significant changes in the company's consolidated financial statements or affect its business development and profitability [2][4] Group 3: Business Development - Fuda Co., Ltd. has been transitioning towards the new energy vehicle industry, focusing on new energy hybrid crankshafts and electric drive gears [2] - The company has secured multiple project allocations from major clients such as BYD, gaining entry into three strategic customer systems in 2024 [3] - Recent investments include a project for ultra-precision gears for electric drive systems and robotic transmission components in Pinghu Economic and Technological Development Zone [3]