Investment Rating - The report maintains an "Accumulate" rating for the company [7] Core Views - The company achieved a revenue growth of 30.77% year-on-year in H1 2025, driven by active market expansion, with total revenue reaching 374 million yuan [1][2] - The net profit attributable to the parent company decreased by 41.87% year-on-year, primarily due to intensified price competition in the domestic automotive market and increased fixed costs from ongoing fundraising projects [1][3] Revenue and Profit Analysis - In H1 2025, the company's revenue from automotive gears, electric tool gears, reducers, and other equipment was 199 million, 68 million, 87 million, and 19 million yuan respectively, with year-on-year growth rates of 22.35%, 6.26%, 101.69%, and 22.35% [2] - The gross margin and net margin for H1 2025 were 18.96% and 5.50%, down by 3.23 and 3.83 percentage points compared to the full year of 2024 [3] R&D and Technological Advancements - The company has developed core technologies for ultra-hard, ultra-fine high-speed cutting hard alloy gear hobs, achieving an industry-leading minimum modulus of 0.05mm, which meets the high-precision gear processing needs of industries such as robotics [4] - The development of core equipment for planetary roller screw processing is on track, with plans for further optimization to achieve mass production and cost reduction [4] Future Growth Prospects - The company is investing in a project in Vietnam to produce 1 million sets of precision transmission structure products annually, with part of the production equipment already installed and in trial production [5][12] - Revenue forecasts for 2025, 2026, and 2027 are projected at 765 million, 854 million, and 956 million yuan, with year-on-year growth rates of 14.9%, 11.7%, and 11.9% respectively [13]

Group 1 - The company achieved an operating income of 374 million yuan in the first half of 2025, representing a year-on-year growth of 30.77%, primarily due to active market expansion [2] - The net profit attributable to shareholders was 20.57 million yuan, while the net profit after deducting non-recurring gains and losses was 18.50 million yuan [2] - The decline in net profit was attributed to intensified price competition in the domestic automotive market, increased fixed costs due to asset depreciation and rising personnel expenses, and reduced interest income and investment returns due to decreased fundraising balance and increased borrowing [2] Group 2 - The company has made significant progress in product innovation, equipment research and development, and key customer development in the first half of 2025 [7] - The company holds over a hundred patents covering product processes and equipment, establishing a strong technical foundation in its main business products [7] - Breakthroughs were achieved in micro small modulus gear cutting tools, with the minimum modulus of hard alloy cutting tools reaching 0.05mm, meeting high-precision gear processing needs in industries such as robotics [7]