Group 1: Financial Performance - In 1H25, the company's total revenue increased by 6.2% year-on-year to 3.45 billion yuan, accounting for approximately 45% of the previous forecast [1] - The net profit attributable to the parent company rose by 27.4% year-on-year to 570 million yuan, representing about 53% of the previous forecast [1] - In 2Q25, operating revenue grew by 11.0% year-on-year and 7.1% quarter-on-quarter to 1.78 billion yuan, while net profit attributable to the parent company surged by 44.9% year-on-year and 22.8% quarter-on-quarter to 320 million yuan [1] Group 2: Profitability Metrics - The company's gross margin in 1H25 improved by 0.6 percentage points to 29.3%, while the selling, general, and administrative (SG&A) expense ratio decreased by 0.1 percentage points to 11.8% [1] - In 2Q25, the gross margin increased by 2.1 percentage points year-on-year and 1.0 percentage point quarter-on-quarter to 29.7%, with the SG&A expense ratio declining by 0.5 percentage points year-on-year and increasing by 0.1 percentage points quarter-on-quarter to 11.9% [1] Group 3: Global Expansion and Robotics Business - The company is steadily advancing its global manufacturing network, with the second phase of the Mexico factory ramping up production for new energy vehicle structural components and three-electric system parts [2] - The Malaysia factory has commenced production of aluminum alloy raw materials and zinc alloy die-casting parts, with plans for aluminum casting production to support Southeast Asian markets and provide strategic support for after-sales in Europe and the U.S. [2] - The company announced plans to acquire 71% of Zhuoerbo (Ningbo) Precision Electromechanical Co., which is expected to enhance its automotive micro-motor technology and extend into the robotics field [2] Group 4: Future Outlook and Valuation - The company maintains a "buy" rating, with net profit forecasts for 2025, 2026, and 2027 increased by 13%, 1%, and 1% to 1.23 billion yuan, 1.42 billion yuan, and 1.63 billion yuan respectively [3] - The target price has been raised to 22.41 yuan, corresponding to an 18x PE for 2025E, reflecting the anticipated benefits from internal cost reductions and scale effects [3]

Core Viewpoint - The company's 4Q24 performance fell short of expectations, with total revenue and net profit growth lower than previously forecasted, primarily due to exchange losses, rising raw material costs, and accounting adjustments [3][4]. Financial Performance - In 2024, the company's total revenue increased by 13.2% year-on-year to 6.75 billion yuan, while net profit rose by 2.9% to 940 million yuan, both below earlier predictions [3]. - For 4Q24, operating revenue was 1.77 billion yuan, reflecting a year-on-year increase of 2.9% and a quarter-on-quarter increase of 2.7%. However, net profit dropped by 37.4% year-on-year and 32.3% quarter-on-quarter to 200 million yuan [3]. Profitability Metrics - The company's gross margin for 2024 decreased by 1.4 percentage points to 27.6%, while the selling, general, and administrative (SG&A) expense ratio fell by 0.2 percentage points to 11.4% [4]. - In 4Q24, the gross margin declined by 5.7 percentage points year-on-year and 6.0 percentage points quarter-on-quarter to 23.7%, with the SG&A expense ratio decreasing by 3.5 percentage points year-on-year and 5.1 percentage points quarter-on-quarter to 8.3% [4]. Strategic Developments - The company is making steady progress in global deployment, with completed factories in Anhui and plans for production in Mexico and Malaysia to mitigate tariff risks. The first phase of the Mexican factory began production in July 2023 and has turned profitable, with the second phase expected to launch in 2Q25 [5]. - The company is entering the robotics sector through internal development and external acquisitions, including a planned acquisition of 71% of Zhuoerbo (Ningbo) Precision Electromechanical Co., which will enhance its automotive micro-motor technology and expand into robotics [5]. - A wholly-owned subsidiary, Shundong Robot Technology (Ningbo) Co., has been established to develop exoskeleton robots and wearable devices, indicating a commitment to expanding its technological capabilities [5].