Core Viewpoint - The company reported strong financial performance for 1H25, with revenue and net profit exceeding expectations, driven by market expansion and robust demand in both domestic and overseas markets [1][2]. Financial Performance - Total revenue for 1H25 reached 4.39 billion yuan, a year-on-year increase of 17.3%, with net profit attributable to shareholders at 440 million yuan, up 32.8% [1]. - Revenue from electric AMI grew by 29.8% to 1.88 billion yuan, while communication AMI revenue increased by 12.8% to 1.30 billion yuan, and distribution ADO revenue rose by 6.1% to 1.21 billion yuan [1]. Overseas Revenue and Orders - Overseas revenue for 1H25 increased by 19.1% to 1.24 billion yuan, accounting for 28.3% of total revenue [2]. - By region, revenue from the Americas rose by 26.0% to 680 million yuan, Asia saw a significant increase of 76.2% to 290 million yuan, while Europe surged by 834% to 40 million yuan [2]. - New overseas orders for 1H25 grew by 22.9% to 2.13 billion yuan, with backlog orders up 28% to 3.61 billion yuan as of June [2]. Profitability and Cost Control - The company's gross margin stood at 35.1%, a decrease of 0.4 percentage points year-on-year, while net profit margin improved by 1.2 percentage points to 10.0% [3]. - The company achieved a reduction in expense ratio to 21.2%, down 1.6 percentage points, with decreases in sales, management, and R&D expenses [3]. Growth Outlook - The company is optimistic about growth opportunities in overseas markets and data centers, with new factories in Hungary, Indonesia, and Malaysia expected to enhance order volumes [3]. - Collaborations with major players in the data center sector, including ByteDance, are anticipated to drive further growth [3]. Profit Forecast and Valuation - The company maintains net profit forecasts of 916 million yuan for 2025 and 1.136 billion yuan for 2026, with current stock price corresponding to P/E ratios of 9.5x and 7.6x for 2025 and 2026, respectively [3]. - The target price has been raised by 22% to 12 HKD, indicating a potential upside of 25% from the current stock price [3].

Core Viewpoint - CICC maintains the net profit forecast for Weisheng Holdings (03393) at 916 million and 1.136 billion yuan for 2025 and 2026, respectively, with the current stock price corresponding to 9.5x and 7.6x P/E for 2025 and 2026 estimates. The target price is raised by 22% to 12 HKD, indicating a 25% upside potential from the current stock price [1] Group 1: Financial Performance - In 1H25, the company achieved total revenue of 4.39 billion yuan, a year-on-year increase of 17.3%, with net profit attributable to shareholders reaching 440 million yuan, up 32.8% year-on-year, exceeding CICC's expectations [2] - Revenue from electric AMI grew by 29.8% to 1.88 billion yuan, while communication AMI revenue increased by 12.8% to 1.3 billion yuan, and distribution ADO revenue rose by 6.1% to 1.21 billion yuan [2] Group 2: Overseas Revenue and Orders - The company's overseas revenue in 1H25 increased by 19.1% to 1.24 billion yuan, accounting for 28.3% of total revenue. By region, revenue from the Americas grew by 26.0% to 680 million yuan, Asia by 76.2% to 290 million yuan, Europe by 834% to 40 million yuan, while Africa decreased by 30.5% to 230 million yuan [3] - New overseas orders signed in 1H25 rose by 22.9% to 2.13 billion yuan, with the backlog of orders as of June 30 increasing by 28% to 3.61 billion yuan [3] Group 3: Profitability and Cost Control - The company's gross margin in 1H25 was 35.1%, a decrease of 0.4 percentage points year-on-year. The electric AMI gross margin fell by 2.4 percentage points to 37.8%, while communication AMI gross margin increased by 0.8 percentage points to 39.2% [4] - The net profit margin for 1H25 was 10.0%, an increase of 1.2 percentage points year-on-year, with the expense ratio decreasing by 1.6 percentage points to 21.2% [4] Group 4: Growth Opportunities - The company’s new factory in Hungary has entered normal delivery operations, and new factories in Indonesia and Malaysia have officially commenced operations, which is expected to enhance order growth in Europe and Asia [5] - The company is actively expanding its product offerings overseas, achieving significant market breakthroughs in North America and South America, and has established deep collaborations in the data center sector with major partners [5]

Core Viewpoint - Company maintains net profit forecasts for 2025/2026 at 916 million and 1.136 billion HKD respectively, with current stock price corresponding to 9.5x and 7.6x P/E ratios for those years, and raises target price by 22% to 12 HKD, indicating a 25% upside potential from current price [1] Group 1: Financial Performance - For 1H25, company reported total revenue of 4.39 billion HKD, a year-on-year increase of 17.3%, with net profit attributable to shareholders at 440 million HKD, up 32.8% year-on-year, exceeding expectations [2] - Revenue breakdown shows electric AMI revenue increased by 29.8% to 1.88 billion HKD, communication AMI revenue rose by 12.8% to 1.30 billion HKD, and distribution ADO revenue grew by 6.1% to 1.21 billion HKD [2] Group 2: Overseas Revenue and Orders - Overseas revenue for 1H25 increased by 19.1% to 1.24 billion HKD, accounting for 28.3% of total revenue, with significant growth in the Americas (up 26.0% to 680 million HKD), Asia (up 76.2% to 290 million HKD), and Europe (up 834% to 40 million HKD) [3] - New overseas orders signed in 1H25 rose by 22.9% to 2.13 billion HKD, with backlog orders as of June 30 increasing by 28% to 3.61 billion HKD [3] Group 3: Cost Control and Profitability - Gross margin for 1H25 was 35.1%, a decrease of 0.4 percentage points year-on-year, with electric AMI gross margin down 2.4 percentage points to 37.8% due to declining domestic tender prices [4] - Net profit margin for 1H25 improved by 1.2 percentage points to 10.0%, supported by a reduction in expense ratios across sales, management, and R&D [4] Group 4: Growth Opportunities - Company’s new factories in Hungary, Indonesia, and Malaysia are now operational, which is expected to enhance order volumes in Europe and Asia [5] - Company is actively expanding its product offerings overseas, achieving significant market breakthroughs in North and South America, and is collaborating with major players in the data center sector to capture domestic and international demand [5]