Core Insights - The company reported a revenue of 5.446 billion yuan for the first half of 2025, representing a year-on-year growth of 19.21%, and a net profit attributable to shareholders of 354 million yuan, up 78.65% year-on-year [1] - Operating cash flow net amount reached 147 million yuan, a significant increase of 224.15% compared to the same period last year, with the controller business segment's cash flow net amount growing over 640% [1] - The overall gross margin improved by 1.66 percentage points due to continuous optimization of product and customer structure [1] Business Segments - The core controller business generated 5.245 billion yuan, accounting for over 96% of total revenue, with a year-on-year growth of 16.64% [1] - Revenue from home appliance controllers was 3.563 billion yuan, up 22.14% year-on-year; electric tools and industrial automation controllers generated 535 million yuan, an increase of 8.32%; smart product controllers earned 618 million yuan, growing by 9.92%; and automotive electronic controllers reached 415 million yuan, up 5.20% [1] - The company is expanding its customer base and project implementation across multiple business directions, maintaining a growth trend [1] Strategic Initiatives - The home appliance controller business is supported by a robust technical system and supply chain, with steady order increases from major domestic and international clients [2] - The electric tools segment maintains stable order delivery rhythms while expanding industrial-grade product lines and overseas delivery capabilities [2] - The automotive electronics sector focuses on smart cockpit and energy management, enhancing collaboration with OEMs and Tier 1 suppliers [2] - The smart business segment is positioned as a strategic growth driver, leveraging new intelligent controllers and AI service platforms across various industries [2] - The company has established manufacturing bases in multiple locations, including Shenzhen, Qingdao, Hefei, Vietnam, Italy, Romania, and Mexico, to support a "multi-regional manufacturing + local delivery" model [2] Governance and Investor Relations - In response to regulatory guidance and investor concerns, the company launched a "Quality and Return Improvement" action plan focusing on core business, governance enhancement, return emphasis, and improved communication [3] - The company has completed cash dividends, distributing 92.13 million yuan, and published the 2024 ESG report to enhance transparency [3] - Internal governance structures have been optimized, with continuous improvements in corporate governance and risk management mechanisms [3]

Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation of stock performance that exceeds market performance by 10% to 20% within the next six months [12]. Core Insights - The company achieved a revenue of 9.659 billion yuan in 2024, representing a year-on-year increase of 28.66%, and a net profit attributable to shareholders of 364 million yuan, up 9.91% year-on-year [4][7]. - In the first quarter of 2025, the company reported a revenue of 2.585 billion yuan, a year-on-year increase of 30.44%, and a net profit of 169 million yuan, reflecting a significant year-on-year growth of 75.41% [4][7]. - The company plans to distribute a cash dividend of 1 yuan per 10 shares (tax included) for 2024 [4]. Summary by Sections Business Performance - The company has shown stable growth across various business segments, with a notable increase in market share. The revenue from the home appliance controller segment grew by 33.08% to 6.094 billion yuan in 2024 [7][8]. - The electric tools and industrial automation segment also performed well, with a revenue increase of 24.26% to 1.008 billion yuan, driven by new projects and customer orders [7][8]. - The automotive electronics segment saw a remarkable growth of 47.97%, reaching 816 million yuan, attributed to significant breakthroughs in product and customer development [8]. - The smart products segment, focusing on smart home and personal care, achieved a revenue increase of 26.29% to 1.22 billion yuan [8]. Financial Projections - The company’s revenue is projected to grow to 12.113 billion yuan in 2025, with a year-on-year growth rate of 25.4%, and net profit is expected to reach 717 million yuan, reflecting a substantial increase of 96.9% [6][10]. - The projected earnings per share (EPS) for 2025 is 0.78 yuan, with a price-to-earnings (P/E) ratio of 24.8 [10]. Financial Ratios - The company’s gross margin is expected to stabilize around 19.1% for 2025, while the net margin is projected to improve to 5.9% [10]. - Return on equity (ROE) is anticipated to rise to 13.7% in 2025, indicating improved profitability [10].