Core Viewpoint - The company reported strong financial performance for 1H25, with revenue and net profit significantly exceeding market expectations, driven by improvements in the casting business and increased sales in wind power products [1][2]. Financial Performance - For 1H25, the company achieved revenue of 1.283 billion yuan, a year-on-year increase of 79.85%, and a net profit of 179 million yuan, up 176.89% year-on-year [1]. - In 2Q25, revenue reached 778 million yuan, reflecting a year-on-year growth of 69.97% and a quarter-on-quarter increase of 54.16%. The net profit for this quarter was 126 million yuan, marking a year-on-year increase of 205.07% and a quarter-on-quarter rise of 136.49% [1]. - The casting business turned profitable in 1H25, with significant contributions from wind power shaft products, which generated 870 million yuan in revenue, a substantial increase of 93.6% year-on-year, and a gross margin of 24.79% [1]. Business Segments - The company’s forging shaft business also saw considerable revenue growth, aligning with industry trends. In 2Q25, wind casting shaft shipments reached approximately 27,000 tons, the highest quarterly shipment since the business's inception, contributing to a net profit of 19 million yuan for the subsidiary Shandong Jinlei Heavy Industry [1]. - Other precision shaft businesses generated 182 million yuan in revenue in 1H25, reflecting an 11.6% year-on-year increase, with a gross margin of 34.2% [1]. - The assembly business, which was previously established, reported revenue of 137 million yuan in 1H25, with a gross margin of 8.4% [1]. Development Trends - The wind power casting business is expected to benefit from the global increase in offshore wind energy, with anticipated production growth in 2025. The business achieved profitability in 2Q25, and further growth is expected due to domestic and international market demand [2]. - Other precision shaft businesses are projected to maintain rapid growth as the company continues to expand its downstream market presence [2]. Profit Forecast and Valuation - The company has raised its 2025 profit forecast by 5.5% to 430 million yuan due to better-than-expected profitability in the wind power casting segment. The 2026 profit forecast remains unchanged [3]. - The current stock price corresponds to a price-to-earnings ratio of 20.8 for 2025 and 16.6 for 2026. The target price has been increased by 16.0% to 29.53 yuan, indicating a potential upside of 5.8% from the current stock price [3].

Core Viewpoint - Demais' controlling shareholder has changed from He Jianping to Pan Yi through a share transfer agreement with Suzhou Huixin Chuangzhi Investment Co., Ltd for a transaction price of 669 million yuan, raising market speculation about connections to Huichuan Technology [2][3] Group 1: Shareholder Changes - The share transfer involves all shareholders of Dalian Demais Investment Co., which will transfer 100% of its equity to Huixin Chuangzhi, making it the indirect controlling shareholder of Demais [3] - After the transaction, Demais Investment will still hold 16.73% of Demais' shares [3] Group 2: Background of Pan Yi - Pan Yi, the new controlling shareholder, has a deep connection with Huichuan Technology, having been a co-founder and former deputy general manager [5] - Although Pan Yi is not among the top ten shareholders of Huichuan Technology, he remains a shareholder of its largest shareholder, Shenzhen Huichuan Investment Co., Ltd, holding 2.5438% [5] - His investment firm, Waniu Capital, is closely related to Huichuan Technology's founder, Zhu Xingming, and focuses on value investment in the intelligent manufacturing sector [5] Group 3: Company Performance and Market Position - Demais is a leading company in the precision shaft and precision cutting parts market, primarily serving the automotive sector, and went public in 2021 [8] - The company's gross margin has declined to 20.77% in 2024, the lowest in nearly a decade, and further dropped to 19.52% in Q1 of this year [8] - Despite achieving a historical revenue high of 690 million yuan, the net profit attributable to shareholders only grew by 1.18% to 53.98 million yuan [8] - Demais has been attempting to diversify into the new energy vehicle parts market but has yet to identify a second growth curve [8] Group 4: Strategic Initiatives - In response to industry trends, Demais announced its entry into the humanoid robot parts business as a potential second growth curve [9]