Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company achieved a revenue of 2.52 billion yuan in H1 2025, representing a year-on-year increase of 20.1%, with a net profit attributable to shareholders of 290 million yuan, up 15.7% year-on-year [1] - In Q2 2025, the company reported a revenue of 1.24 billion yuan, with a year-on-year increase of 19.1% but a quarter-on-quarter decrease of 3.7%. The net profit attributable to shareholders was 130 million yuan, down 25.1% year-on-year and 19.8% quarter-on-quarter [1] - Excluding one-time compensation from H1 2024, the company's Q2 2025 net profit attributable to shareholders, excluding non-recurring items, was 110 million yuan, reflecting a year-on-year increase of 33.1% but a quarter-on-quarter decrease of 13.8% [1] - The company's gross margin in Q2 2025 was 19.8%, a decrease of 1.8 percentage points quarter-on-quarter, primarily due to the increased proportion of electric drive business [1] Business Segments Summary - In H1 2025, the revenue from interior and exterior trim and electromechanical components was 1.34 billion yuan, up 11.0% year-on-year; wheel hub bearings revenue was 620 million yuan, up 2.3% year-on-year; and the new energy electric drive business revenue was 440 million yuan, up 93.8% year-on-year [1] - The company has established three high-end wheel hub bearing production lines in its Thailand factory, achieving localized production and obtaining necessary certifications [2] - The company is accelerating the rollout of its screw rod business, with several products in the sampling and verification stages for major domestic new energy vehicle manufacturers [2] Financial Forecast and Valuation - The company is expected to achieve net profits attributable to shareholders of 520 million yuan, 650 million yuan, and 760 million yuan for the years 2025, 2026, and 2027, respectively, corresponding to price-to-earnings ratios of 52, 42, and 36 times [3] - The projected revenue for 2025 is 5.755 billion yuan, with a year-on-year growth rate of 17.2% [4]

Core Insights - The company reported a revenue of 4.91 billion yuan for 2024, marking an 18.64% year-on-year increase, and a net profit of 497 million yuan, reflecting a significant growth of 514.49% [1] - The company plans to issue a stock dividend of 4 shares for every 10 shares held and distribute a cash dividend of 2 yuan per share (tax included) [1] Group 1: Business Overview - The company specializes in the research, manufacturing, and sales of automotive components, including interior and exterior parts, precision components, intelligent control system parts, and new energy power systems [1] - The company’s subsidiary, Hubei New Torch, leads the wheel hub bearing sector, achieving an annual production capacity of over 18 million sets and expanding its market presence among major new energy vehicle manufacturers [1] Group 2: Product Development - The company has successfully developed reverse planetary roller screw products for humanoid robots, with a planned annual production capacity of 12,000 sets by the end of 2024 [2] - The company has established a complete processing capability and production line for micro ball screws, targeting applications in humanoid robot dexterous hands [2][3] Group 3: Future Strategies - The company aims to advance the industrial application of core technologies such as ball screws and develop AI quality prediction models while expanding into the low-altitude economy sector [4] - The company plans to accelerate the development of supporting products for new energy vehicles and deepen its global presence, particularly in Southeast Asia and North America [4]