Core Viewpoint - Tenglong Co., Ltd. is a leading enterprise in the automotive thermal management sector, focusing on the research, production, and sales of automotive heat exchange system pipeline products, with a strong technical capability in this area [1] Financial Performance - For Q3 2025, Tenglong's revenue was 2.865 billion yuan, ranking 24th among 103 companies in the industry, significantly lower than the top company Weichai Power at 170.571 billion yuan and second-ranked Top Group at 20.928 billion yuan [2] - The main business revenue breakdown includes 1.228 billion yuan from automotive thermal management system components (64.89%), 363 million yuan from EGR systems and sensors (19.20%), and 301 million yuan from automotive rubber and plastic components (15.91%) [2] - The net profit for the same period was 164 million yuan, ranking 32nd in the industry, again far behind Weichai Power's 10.852 billion yuan and Top Group's 1.969 billion yuan [2] Financial Ratios - As of Q3 2025, Tenglong's debt-to-asset ratio was 48.17%, higher than the previous year's 45.66% and above the industry average of 39.06% [3] - The gross profit margin for Q3 2025 was 19.05%, down from 21.83% in the previous year and below the industry average of 21.53% [3] Executive Compensation - The chairman, Jiang Xuezheng, received a salary of 600,000 yuan in 2024, a decrease of 100,000 yuan from 2023 [4] - The general manager, Li Min, earned 660,000 yuan in 2024, down 28,200 yuan from the previous year [4] Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 90.63% to 69,000, while the average number of circulating A-shares held per shareholder decreased by 47.54% to 7,110.35 [5] - The top circulating shareholder is Guangfa Innovation Upgrade Mixed Fund, holding 3.621 million shares as a new shareholder [5] Business Development - Tenglong's revenue from new energy vehicle thermal management products reached 681 million yuan in the first half of 2025, accounting for 55.42% of the thermal management system components revenue, with 138 new project approvals, including 112 for new energy projects [5] - The company is expanding its overseas market presence, with overseas sales revenue of 462 million yuan in the first half of 2025, representing 24.41% of total revenue [5] - Tenglong is also exploring non-automotive thermal management applications, with small-scale production of liquid cooling products [5] Strategic Initiatives - The company is accelerating its transition to new energy, with the revenue share of new energy vehicle thermal management products expected to reach 63.8% in 2024 [6] - The Polish factory's integrated module production line is ramping up, and the domestic integrated module project is set to begin mass production in May 2025 [6] - Tenglong aims to achieve overseas sales revenue of 740 million yuan in 2024, with the Polish factory nearing breakeven [6]

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company reported a stable revenue growth of 9.05% year-on-year, achieving a revenue of 1.893 billion yuan in the first half of 2025 [2][3] - The gross profit margin decreased by 2.97 percentage points to 18.67%, indicating short-term pressure on profitability [4] - The company is accelerating its expansion into overseas markets, with overseas sales accounting for 24.41% of total revenue [5] - The company is actively exploring non-automotive thermal management applications, with small-scale production of liquid cooling products [7][8] - The company has adjusted its profit forecast for 2025-2027, expecting revenues of 4.534 billion, 5.363 billion, and 6.334 billion yuan, with corresponding net profits of 252 million, 301 million, and 360 million yuan [9] Summary by Sections Revenue and Profitability - In the first half of 2025, the company achieved a revenue of 1.893 billion yuan, with a year-on-year growth of 9.05%. The net profit attributable to the parent company was 91 million yuan, down 21% year-on-year [2][3] Gross Margin and Expenses - The gross profit margin for the first half of 2025 was 18.67%, a decrease of 2.97 percentage points compared to the previous year. The R&D expense ratio increased to 5.28%, reflecting the company's commitment to innovation [4] Market Expansion - The company achieved overseas sales of 462 million yuan, representing 24.41% of total revenue. The establishment of a factory in Poland is enhancing its presence in Europe [5] Product Development - The company is planning to build a 6,000 tons/year rubber mixing center and a 10 million meters/year air conditioning rubber hose project, expanding its product offerings [6] Non-Automotive Applications - The company is exploring thermal management applications in non-automotive fields, with small-scale production of liquid cooling products for data centers and energy storage cabinets [7][8] Financial Forecast - The company has revised its revenue and profit forecasts for 2025-2027, with expected revenues of 4.534 billion, 5.363 billion, and 6.334 billion yuan, and net profits of 252 million, 301 million, and 360 million yuan respectively [9]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [5] Core Views - The company has shown continuous improvement in profitability despite challenges in its equipment business, which has been a drag on growth [1][2] - The cooling component revenue reached 5.41 billion yuan in H1 2025, up 8.8% year-on-year, while the equipment business revenue fell to 480 million yuan, down 31.4% [2] - The company is positioned as a leader in the refrigeration component sector, with ongoing structural upgrades in its home appliance business and expansion into the high-growth new energy vehicle thermal management sector [3] Financial Performance Summary - In H1 2025, the company achieved operating revenue of 6.73 billion yuan, a year-on-year increase of 6.1%, and a net profit attributable to the parent company of 540 million yuan, up 12.9% [1] - The gross margin for H1 2025 was 17.3%, slightly down by 0.7 percentage points year-on-year, but improved to 18.3% in Q2 2025 [2] - The company expects net profits for 2025, 2026, and 2027 to be 1.12 billion yuan, 1.31 billion yuan, and 1.54 billion yuan respectively, with corresponding dynamic P/E ratios of 12.6x, 10.8x, and 9.2x [3] Market Position and Growth Prospects - The company is leveraging opportunities in the secondary supply chain and is gradually establishing a new growth curve [3] - The domestic central air conditioning market saw a decline of 15.9% in H1 2025, impacting the equipment business, which has a longer cycle and fluctuating revenue recognition [2] - The company has optimized its expense ratios, with sales, management, R&D, and financial expense ratios showing improvements in Q2 2025 [2]