Core Viewpoint - Longsheng Technology is intensifying its investment in the field of embodied intelligent robots, planning to invest 350 million yuan to establish an innovation center in Wuxi, focusing on the research and industrialization of humanoid robots [1][2]. Investment and Project Details - Longsheng Technology and its subsidiary, Longsheng Weirui, signed a cooperation agreement with the Wuxi Binhu District government to invest approximately 350 million yuan in the innovation center project [2]. - The project will involve an investment of about 200 million yuan from Longsheng Technology for land and construction, while Longsheng Weirui will invest around 150 million yuan for the center's operation [2]. - The center will be built on a new industrial land area of 5,166.6 square meters, with support from local government policies and resources [2]. Business Performance - Longsheng Technology has seen continuous growth in revenue and net profit over the past three years, with a net profit of 106 million yuan in Q3 2025, marking the first time it has exceeded 100 million yuan [1][4]. - The company reported revenues of 1.827 billion yuan and 2.397 billion yuan for 2023 and 2024, respectively, with year-on-year growth rates of 59.11% and 31.21% [4]. - In the first three quarters of 2025, the company achieved revenues of 1.81 billion yuan, a year-on-year increase of 10.13%, and a net profit of 210 million yuan, up 36.89% [4]. Stock Market Performance - Since the beginning of 2025, Longsheng Technology's stock price has doubled, rising from 23.76 yuan per share to 47.63 yuan per share, reflecting a growth of 100.46% [4]. Business Segmentation - As of the first half of 2025, the revenue composition of Longsheng Technology shows that 39.58% comes from new energy vehicle components, 36.82% from EGR valves, and 23.48% from precision automotive parts, with other businesses contributing only 0.12% [5].

Core Viewpoint - The company reported a revenue of 1.224 billion yuan in the first half of 2025, representing a year-on-year increase of 15.44%, and a net profit attributable to shareholders of 105 million yuan, up 1.38% year-on-year [1] Revenue and Profit Analysis - In Q2 2025, the company achieved a revenue of 618 million yuan, which is a year-on-year increase of 25.03%, while the net profit attributable to shareholders was 46 million yuan, showing a year-on-year decrease of 9.04% [1] - The revenue from the company's new energy vehicle components, EGR and injection systems, and precision automotive parts for the first half of 2025 was 485 million, 451 million, and 287 million yuan respectively, with year-on-year growth rates of 6.05%, 27.44%, and 19.61% [2] Margin and Cost Structure - The net profit margin for Q2 2025 was 7.45%, down by 2.79 and 2.23 percentage points year-on-year and quarter-on-quarter respectively [3] - The gross margin in Q2 2025 decreased by 1.46 percentage points to 18.01% year-on-year, primarily due to increased depreciation and slower revenue growth [3] - The company maintained a good control over selling expenses, with a selling expense ratio of 0.42%, down 1.02 and 0.35 percentage points year-on-year and quarter-on-quarter respectively [3] Strategic Developments - The company is progressively clarifying its "1+3" strategic layout in humanoid robotics, with "1" referring to the self-developed "Lansen" robot and "3" to three core components: harmonic reducers, dexterous hands, and tactile sensors [4] - The company successfully developed a lightweight harmonic reducer that reduces weight by 30%-40% compared to traditional products, with an expected production capacity of approximately 70,000 units by Q1 2026 [4] Future Outlook - The company anticipates a recovery in performance in the second half of 2025, driven by volume and price increases in its main business, alongside a well-established layout in the humanoid robotics sector [5] - The profit forecast for 2025-2027 has been adjusted to 327 million, 414 million, and 482 million yuan respectively, with the current stock price corresponding to PE ratios of 30.0, 23.8, and 20.4 times [5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company's revenue for the first half of 2025 reached 1.224 billion yuan, a year-on-year increase of 15.44%, with a net profit attributable to shareholders of 105 million yuan, up 1.38% year-on-year. In Q2 2025, revenue was 618 million yuan, a year-on-year increase of 25.03%, while net profit attributable to shareholders was 46 million yuan, down 9.04% year-on-year [3][9] - The company is expected to see a recovery in performance in the second half of 2025, driven by a combination of volume and price increases in its main business, alongside a well-defined strategic layout in the humanoid robotics sector [9] Financial Performance Summary - In H1 2025, the company's revenue from various segments included 485 million yuan from new energy vehicle components, 451 million yuan from EGR and injection systems, and 287 million yuan from precision automotive parts, with year-on-year growth rates of 6.05%, 27.44%, and 19.61% respectively [5] - The company's gross profit margin in Q2 2025 was 18.01%, down 1.46 percentage points year-on-year, primarily due to increased depreciation and slower revenue growth [5][9] - The company has a projected revenue of 3.35 billion yuan for 2025, with a net profit of 327 million yuan, reflecting a growth rate of 39.7% and 45.8% respectively [7][9] Strategic Developments - The company is advancing its humanoid robotics strategy, which includes the self-developed "Lansen" robot and key components such as lightweight harmonic reducers and dexterous hands. The production capacity for harmonic reducers is expected to reach approximately 70,000 units by Q1 2026 [6][9] - The strategic investment in Dida Intelligent has enabled the company to develop the world's first high-performance tactile sensor, enhancing its competitive edge in the humanoid robotics market [6][9]

Financial Performance - In the first half of 2025, the company reported revenue of 1.224 billion yuan, a year-over-year increase of 15.4%, and a net profit attributable to shareholders of 105 million yuan, up 1.4% year-over-year [1] - In Q2 2025, the net profit attributable to shareholders was 46 million yuan, reflecting a year-over-year and quarter-over-quarter decrease of 9.0% and 21.5% respectively [1] Revenue Breakdown - The sales gross margin and net profit margin for H1 2025 were 18.1% and 8.9% respectively [2] - EGR revenue reached 451 million yuan, a year-over-year increase of 27.44%, with a gross margin of 21.33%, down 3.14 percentage points year-over-year [2] - New energy business revenue was 484 million yuan, up 6.05% year-over-year, with a gross margin of 9.63%, down 2.27 percentage points year-over-year [2] - Precision automotive parts revenue was 287 million yuan, a year-over-year increase of 19.61%, with a gross margin of 22.88%, down 1.43 percentage points year-over-year [2] Aerospace and Robotics Developments - In H1 2025, the company saw a doubling in business volume for satellite modules and drone projects, and expanded into precision missile component support [3] - The company successfully overcame key technical challenges in harmonic reducers, improving product performance and reducing weight by 30%-40% compared to traditional products [4] - The "Lansen 2nd generation" robot has advanced from executing fixed commands to intelligent decision-making and optimization, enhancing operational precision and collaborative capabilities [4] Strategic Partnerships and Innovations - The company has invested in Dido Technology, which has developed the world's first millimeter-level high-performance tactile sensor, enhancing robotic capabilities in precision tasks [5][6] - The collaboration aims to improve automation in production and industrial inspection, addressing the common industry challenge of advanced technology implementation [6] Profit Forecast - The company is projected to achieve revenues of 3.27 billion yuan, 4.23 billion yuan, and 5.34 billion yuan from 2025 to 2027, with year-over-year growth rates of 36.5%, 29.3%, and 26.2% respectively [7] - The net profit attributable to shareholders is expected to reach 321 million yuan, 419 million yuan, and 513 million yuan during the same period, with growth rates of 42.9%, 30.7%, and 22.4% respectively [7]