Investment Rating - The report assigns a rating of "Accumulate" to the company with a target price of 17.73 CNY [4][11]. Core Insights - The company is a pioneer in the perovskite photovoltaic equipment sector in China, having established a comprehensive solution from research and development to GW-level mass production, successfully delivering core equipment in bulk [2][11]. - The company has a first-mover advantage in the perovskite field, with a complete equipment solution covering the entire production process, including core processes such as glass cleaning, PVD coating, and packaging integration [11][17]. - Financial forecasts indicate that the company's earnings per share (EPS) for 2025, 2026, and 2027 are expected to be 0.47 CNY, 0.63 CNY, and 0.76 CNY respectively, with a projected price-to-earnings (PE) ratio of 28 times for 2026 [11][17]. Financial Summary - The total revenue for 2023 is projected at 7,214 million CNY, with a year-on-year growth of 48.2%. The revenue is expected to decrease to 7,174 million CNY in 2025, followed by a recovery to 8,077 million CNY in 2026 and 9,028 million CNY in 2027 [11][12]. - The net profit attributable to the parent company is forecasted to be 337 million CNY in 2023, increasing to 429 million CNY in 2024, but dropping to 292 million CNY in 2025 before rising again to 392 million CNY in 2026 and 476 million CNY in 2027 [11][12]. - The company’s net asset return (ROE) is expected to be 9.2% in 2023, increasing to 10.6% in 2024, but decreasing to 6.8% in 2025 before recovering to 8.5% in 2026 and 9.4% in 2027 [11][12]. Market Position - The company has a total market capitalization of 8,403 million CNY, with a share price range of 10.47 CNY to 14.39 CNY over the past 52 weeks [5][11]. - The company has a net debt ratio of -21.54%, indicating a strong financial position with more cash than debt [6][11].

Core Viewpoint - Oriental Precision's strong performance in the first half of 2025 is primarily driven by its waterborne power equipment segment, particularly the historical highs achieved by its subsidiary, Baisheng Power [1][2][3]. Group 1: Financial Performance - In the first half of 2025, Oriental Precision reported revenue of 2.159 billion yuan, a slight decrease of 0.1% year-on-year [1][3]. - The net profit attributable to shareholders reached 397 million yuan, marking a significant increase of 142.52% year-on-year [1][3]. - The net profit after deducting non-recurring items was 257 million yuan, reflecting a year-on-year growth of 12.12% [3]. Group 2: Business Segments - The company operates two main business segments: intelligent packaging equipment and waterborne power equipment, both contributing to its revenue growth [2][3]. - The intelligent packaging equipment segment achieved record revenue in 2024, with the corrugated paper packaging equipment maintaining the top market share in China and ranking among the top two globally [2]. - Baisheng Power, a subsidiary, reported revenue of 485 million yuan in the first half of 2025, a year-on-year increase of approximately 28%, and net profit of 58 million yuan, up 13% [2][3]. Group 3: Global Expansion and Innovation - Oriental Precision is accelerating global capacity upgrades and investing in new production capabilities to enhance its core competitiveness [1][4]. - The company has established a global asset layout with R&D and production bases in Asia, Europe, the United States, and Mexico, serving over 100 countries and regions [4]. - The company has increased its R&D investment, resulting in 491 authorized patents and 84 software copyrights by the end of 2024, reflecting a commitment to technological innovation [4]. Group 4: Strategic Investments - While strengthening its core business, Oriental Precision adheres to a "1+N" development strategy and a path of "industry-based + capital-driven" growth [5]. - The company is actively investing in areas such as embodied intelligence, robotics, and commercial aerospace, forming a comprehensive investment layout across the entire industry chain [5].