Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a forecasted stock performance that is expected to exceed the market index by 5% to 15% over the next six months [6]. Core Insights - In the first half of 2025, the company achieved operating revenue of 237 million, representing a year-on-year growth of 7.29%. The net profit attributable to shareholders was 53 million, up 13.87% year-on-year [1]. - The second quarter of 2025 saw a decline in performance, with operating revenue of 113 million, down 6.03% year-on-year and 8.87% quarter-on-quarter. The net profit for Q2 was 17 million, reflecting a significant decrease of 37.15% year-on-year and 52.78% quarter-on-quarter, primarily due to a reduction in international business orders [4]. - The company's gross margin for the first half of 2025 was 41.90%, an increase of 1.19 percentage points compared to the same period last year [4]. - All major product lines reported positive revenue growth in the first half of 2025, with specific increases in sales for various types of hoses [4]. - The company is actively expanding its new product market, particularly in the high-pressure sterilization equipment sector, with new orders from the juice and beverage industry [4]. Financial Forecast - The company is projected to achieve earnings per share of 1.00 yuan and 1.12 yuan for 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 24 times and 21 times [5]. - Revenue forecasts for the upcoming years are as follows: 556 million for 2025, 645 million for 2026, and 755 million for 2027 [5].

New Consumption - The company achieved total operating revenue of 1.769 billion yuan in H1 2025, a year-on-year increase of 30.83% [2][8] - The total profit reached 241 million yuan, up 7.17% year-on-year, while the net profit attributable to shareholders was 186 million yuan, reflecting a growth of 5.21% [2][10] - The main brand, Marubi, maintained its position as the "No. 1 domestic brand in eye care" and the PL brand won the "Most Influential Makeup and Fragrance Brand" award [2][9] Machinery/Building Materials - The company reported operating revenue of 161 million yuan in H1 2025, a significant increase of 51.66% year-on-year, with a net profit of 23 million yuan, up 199.23% [12][15] - The balance machine business showed steady growth, while automation equipment and software information systems contributed significantly to performance [13][15] - The company is recognized as a leader in domestic balance machines, with new orders expected to increase as the company expands into high-end equipment manufacturing markets [15] Transportation - The company achieved approximately 766 million yuan in revenue in H1 2025, a decrease of 8.57% year-on-year, while the net profit was approximately 532 million yuan, an increase of 20.51% [16][17] - The main business of highways remains stable, with a significant increase in net profit in Q2 2025 due to the recovery of previously provisioned losses [16][17] - The company plans to distribute a cash dividend of 0.15 yuan per share, indicating a commitment to shareholder returns [16][18] North Exchange - The company reported revenue of 237 million yuan in H1 2025, a year-on-year increase of 7%, with a net profit of 52.68 million yuan, up 14% [20][21] - The domestic revenue grew by 31%, while overseas revenue faced challenges [21] - The company is actively developing new products in nuclear power and data center sectors, which are expected to drive future growth [21][22] Hydraulic Industry - The company achieved revenue of 344 million yuan in H1 2025, a year-on-year increase of 13%, with a net profit of 67.32 million yuan, up 40% [31][32] - The growth was driven by strong demand for dump truck cylinders and oil-gas springs, with significant improvements in gross margins [32][33] - The company is expanding into new fields such as autonomous driving and industrial robotics, indicating a strategic shift towards innovative applications [34][35]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The company achieved a year-on-year revenue growth of 30% in domestic income for the first half of 2025, driven by its research and development efforts in the nuclear power, data center, and offshore engineering sectors, which are expected to promote domestic substitution [5][8] - The company reported a revenue of 237 million yuan in H1 2025, representing a 7% year-on-year increase, and a net profit attributable to shareholders of 52.68 million yuan, up 14% year-on-year [8] - The company is focusing on new fields such as nuclear power hoses and data center liquid cooling hoses, which are anticipated to provide new growth momentum [8] Financial Performance Summary - For 2023, the company is projected to have a revenue of 485 million yuan, with a year-on-year growth rate of 29.5%. The net profit attributable to shareholders is expected to be 134 million yuan, reflecting a 60.78% year-on-year increase [7] - The company forecasts revenues of 555 million yuan in 2025, with a net profit of 122 million yuan, indicating a 13.93% year-on-year growth [7] - The earnings per share (EPS) is projected to be 0.96 yuan in 2025, with a price-to-earnings (P/E) ratio of 28.37 [7] Business Segments and Growth Drivers - The company's fluid segment has seen steady growth, with total revenue from hose assemblies and supporting pipe fittings increasing by 8% year-on-year in H1 2025 [8] - The company has made significant progress in the R&D of high-pressure hoses and has been included in the first-level supplier system of China National Petroleum Corporation, which may unlock growth potential in high-pressure drilling hoses [8] - The company is actively exploring diversified business models in its high-pressure equipment segment, aiming to reduce customer usage thresholds and expand applications across various industries [8]

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company's main business of rubber hoses benefits from the recovery of the domestic machinery industry, although Q2 performance declined due to tariff impacts [2] - The company has successfully expanded its product offerings in nuclear power, liquid cooling, and marine hoses, which opens up new growth opportunities [4] - The company is focusing on high-pressure equipment and polymer materials, enhancing its service offerings in various sectors [4] Financial Performance Summary - In H1 2025, the company achieved revenue of 237 million yuan, a year-on-year increase of 7%, and a net profit of 53 million yuan, up 14% year-on-year [2] - The revenue from domestic and overseas markets was 125 million yuan and 112 million yuan, with a year-on-year growth of 31% and a decline of 11% respectively [2] - The gross profit margin increased by 1.19 percentage points to 41.9%, and the net profit margin rose by 1.24 percentage points to 22.13% [2] - The company’s main products, including hose assemblies and hydraulic hoses, showed stable growth in revenue and gross profit margins [3] Product and Market Expansion - Hose assemblies and related fittings accounted for nearly 50% of total revenue, with a gross margin of 52.59% [3] - The company is expanding into high-performance international brand replacements and is set to benefit from the demand for oil extraction and the replacement of old hoses [4] - The company has completed sample trials for various nuclear power hoses and is in the process of supplying samples for liquid cooling hoses [4] Earnings Forecast and Valuation - The forecasted net profits for 2025 to 2027 are 138 million yuan, 173 million yuan, and 210 million yuan respectively, with corresponding P/E ratios of 23, 18, and 15 [4]