Group 1: Employee Stock Ownership Plan - The company launched a 2025 employee stock ownership plan, utilizing 1,012,300 shares of previously repurchased A-shares, accounting for approximately 0.28% of total share capital [1] - The plan aims to raise a maximum of 56.03 million yuan, with a purchase price set at 55.35 yuan per share, which is 50.2% of the closing price on September 9 [1] - The plan includes a 12-month lock-up period, after which stock rights will vest in three phases: 30% after 12 months, 40% after 24 months, and 30% after 36 months [1] Group 2: Financial Performance and Growth Projections - The company expects revenue or net profit growth rates of no less than 15% or 20%, 25% or 30%, and 35% or 40% for the years 2025, 2026, and 2027, respectively, based on 2024 figures [1] - Total expenses for the employee stock ownership plan are estimated at 49.99 million yuan, with amortization of 5 million, 27.5 million, 13.33 million, and 4.17 million yuan for the years 2025 to 2028 [1] Group 3: Business Growth and Strategic Developments - The company is experiencing growth in mica revenue due to increasing orders from overseas clients, including major automotive manufacturers and battery leaders [2] - The acquisition of Diz Precision aims to enhance the company's capabilities in precision transmission and intelligent equipment, with a clear strategic layout in the robotics sector [2] - The company forecasts a net profit of 310 million, 420 million, and 580 million yuan for the years 2025 to 2027, representing year-on-year growth rates of 34%, 35%, and 39%, respectively [2]

Core Viewpoint - The company reported a strong performance in H1 2025, with revenue and net profit showing significant year-on-year growth, driven by increasing overseas customer engagement and a strategic focus on the robotics sector [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 572 million yuan, a year-on-year increase of 15%, and a net profit attributable to shareholders of 120 million yuan, up 22% year-on-year [1]. - For Q2 2025, revenue was 306 million yuan, reflecting an 8.4% year-on-year increase and a 15% quarter-on-quarter increase; net profit for the same period was 60 million yuan, up 18% year-on-year and 7.4% quarter-on-quarter [1]. - The gross margin for H1 2025 was 35.7%, an increase of 2.0 percentage points year-on-year, while the net profit margin was 21.6%, up 1.3 percentage points year-on-year [2]. Growth Drivers - The company's revenue from new energy products reached 460 million yuan in H1 2025, representing a 21% year-on-year growth, although Q2 growth was impacted by a slowdown in Tesla's sales [1]. - The company has established partnerships with leading global automakers such as Tesla, Volkswagen, BMW, and Volvo, as well as with major battery manufacturers like CATL, which is expected to enhance overseas revenue contributions [1]. Strategic Initiatives - The company is actively pursuing strategic acquisitions to strengthen its position in the robotics sector, including the acquisition of a 15% stake in Guangzhou Jinli Intelligent Transmission Technology Co., Ltd., which will facilitate entry into precision transmission and humanoid robotics [2]. - The company maintains a clear strategic layout in the robotics field, with ongoing efforts to expand both domestic and international markets [2]. Profit Forecast - The profit forecast for the company has been adjusted for 2025-2027, with expected net profits of 310 million yuan, 420 million yuan, and 580 million yuan, reflecting year-on-year growth rates of 34%, 35%, and 39% respectively [2].

Investment Rating - The report maintains a "Buy" rating for the company [3][6] Core Views - The company reported a revenue of 572 million yuan for H1 2025, representing a year-on-year increase of 15%, and a net profit attributable to shareholders of 120 million yuan, up 22% year-on-year [1] - The revenue growth rate in Q2 2025 showed a slowdown, primarily attributed to the deceleration in Tesla's sales, but overseas customer acquisition is expected to drive future revenue growth [1][2] - The company is strategically positioned in the robotics sector, with a clear layout and ongoing expansion into precision transmission and humanoid robotics through acquisitions [2] Financial Performance - For H1 2025, the gross margin was 35.7%, an increase of 2.0 percentage points year-on-year, while the net profit margin was 21.6%, up 1.3 percentage points year-on-year [2] - The company’s revenue forecast for 2025-2027 is adjusted to 308 million, 415 million, and 577 million yuan respectively, with year-on-year growth rates of 34%, 34%, and 38.9% [3][5] - The projected P/E ratios for 2025, 2026, and 2027 are 93x, 69x, and 50x respectively [3] Business Strategy - The company has made strategic acquisitions to enhance its capabilities in the robotics field, including a 15% stake in Guangzhou Jinli Intelligent Transmission Technology Co., which will facilitate entry into emerging sectors [2] - The company is expected to benefit from partnerships with leading global automotive manufacturers and battery suppliers, which will likely increase its overseas revenue share [1][2]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company is strategically investing in the robotics sector by acquiring a stake in Jinli Transmission, which has an overall valuation of RMB 2 billion, aiming to hold at least 15% of the target company [1] - The acquisition is expected to enhance the company's capabilities in intelligent transmission and humanoid robotics, thereby strengthening its competitive advantage and profitability [1] - The company has a strong foundation in its core business, particularly in mica products, which are well-established and cater to top global automotive clients [2] - The company is projected to maintain high growth in its mica business, supported by increasing contributions from major clients like Volkswagen and Tesla [2] Financial Performance and Projections - The company is expected to achieve a net profit of RMB 327 million, RMB 465 million, and RMB 637 million for the years 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 42%, 42%, and 37% [3] - Revenue is projected to grow from RMB 800 million in 2023 to RMB 2.897 billion in 2027, with a compound annual growth rate (CAGR) of approximately 34.9% [4] - The company's earnings per share (EPS) is expected to increase from RMB 0.47 in 2023 to RMB 1.75 in 2027 [4] - The price-to-earnings (P/E) ratio is projected to decrease from 95.2 in 2023 to 25.7 in 2027, indicating an improving valuation as earnings grow [4] Strategic Developments - The company is making significant strides in the robotics sector through the acquisition of Diz Precision, which specializes in micro ball screws and has a strong R&D capability [2] - The strategic layout in the robotics field is becoming clearer, with initial sales to robotics companies already generating revenue [2] - The company is expected to benefit from its established technology and customer resources, which create a competitive moat in the mica market [2]