Core Viewpoint - The company reported its 2025 mid-year results, showing a slight increase in revenue but a significant decline in net profit, indicating challenges in profitability despite stable revenue growth [1][2]. Financial Performance - For the first half of 2025, the company achieved revenue of 2.497 billion yuan, a year-on-year increase of 0.63%, while the net profit attributable to shareholders was 132 million yuan, a decrease of 24.50% [1]. - The company's net profit after deducting non-recurring items was 113 million yuan, down 30.96% year-on-year [1]. - In Q2 2025, total revenue reached 1.341 billion yuan, up 0.96% year-on-year and 16.01% quarter-on-quarter [2]. - The net profit for Q2 was 77 million yuan, a decrease of 6.02% year-on-year but an increase of 40.00% quarter-on-quarter [2]. - The company’s expense ratios for sales, management, R&D, and finance were 4.46%, 3.92%, 2.70%, and 0.62%, respectively, with sales expenses increasing by 17.27% year-on-year [2]. Business Segments - The electric motor and service segment generated revenue of 1.825 billion yuan, down 2.25% year-on-year, while the nuclear power products segment saw revenue of 627 million yuan, an increase of 13.26% [2]. - Gross margins for these segments were 20.34% and 25.49%, respectively, with year-on-year changes of +1.25 and -4.35 percentage points [2]. Industry and Policy Support - The company benefits from supportive policies aimed at promoting energy efficiency and upgrading industrial equipment, particularly in the electric motor sector [3]. - The company has made significant advancements in nuclear power technology, achieving over 70% market share domestically [4]. - The company was recognized as a "manufacturing single champion" and has received certifications for high-efficiency electric motors, enhancing its competitive edge [3]. Future Prospects - The company secured a contract for nuclear power equipment worth 609 million yuan, which is expected to positively impact future performance [4]. - The company is projected to see net profits of 370 million, 486 million, and 570 million yuan from 2025 to 2027, with corresponding EPS of 0.53, 0.70, and 0.82 yuan per share [4].

Investment Highlights - Company reported H1 2025 revenue of 2.497 billion yuan, a year-on-year increase of 0.63%, and a net profit attributable to shareholders of 132 million yuan, a year-on-year decrease of 24.50% [1] - In Q2 2025, total revenue reached 1.341 billion yuan, a year-on-year increase of 0.96% and a quarter-on-quarter increase of 16.01% [2] - The company has secured a nuclear power equipment order worth 609 million yuan, which is expected to positively impact future performance [4] Business Performance - For H1 2025, revenue from electric motors and services was 1.825 billion yuan, down 2.25% year-on-year, while revenue from nuclear power products was 627 million yuan, up 13.26% year-on-year [2] - Q2 2025 net profit attributable to shareholders was 77 million yuan, a year-on-year decrease of 6.02% but a quarter-on-quarter increase of 40.00% [2] - The company’s expenses in sales, management, R&D, and finance for H1 2025 were 4.46%, 3.92%, 2.70%, and 0.62% respectively, with sales expenses increasing by 17.27% year-on-year [2] Market Opportunities - National policies are supporting the upgrade of energy-efficient and advanced equipment, providing significant market opportunities for electric motors as a core industrial component [3] - The company has achieved breakthroughs in nuclear power technology and has a market share exceeding 70% in the domestic market for certain nuclear power applications [4] - The company is recognized for its high-efficiency and low-carbon products, enhancing its competitive edge in the market [3] Future Outlook - The company is expected to benefit from energy efficiency upgrades and equipment renewal policies, with projected net profits of 370 million, 486 million, and 570 million yuan for 2025, 2026, and 2027 respectively [4] - The company maintains a "buy" rating, indicating confidence in its growth potential in the industrial special motor sector [4]