Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company reported strong performance in the first half of 2025, with revenue reaching 1.283 billion yuan, a year-on-year increase of 79.85%, and a net profit attributable to shareholders of 188 million yuan, up 153.34% year-on-year. The company's gross margin was 23.47%, an increase of 2.5 percentage points, and the net margin was 14.63%, up 4.25 percentage points [5][13] - The significant growth in performance is attributed to the turnaround in the casting business, which has notably improved profitability [5][14] Summary by Sections Financial Performance - In the first half of 2025, the company achieved revenue of 1.283 billion yuan, a 79.85% increase year-on-year, and a net profit of 188 million yuan, a 153.34% increase year-on-year. The second quarter alone saw revenue of 778 million yuan, a 69.98% increase year-on-year, and a net profit of 132 million yuan, a 193.95% increase year-on-year [5][13] - The company's wind power shaft products generated revenue of 870 million yuan in the first half of 2025, a 93.6% increase year-on-year, with a gross margin of approximately 25% [14] Business Segments - The casting business has turned profitable, with the subsidiary Jinlei Heavy Industry achieving a net profit of 19 million yuan in the first half of 2025, benefiting from increased market demand and improved pricing [14] - Other precision shafts also saw steady growth, with revenue reaching 182 million yuan, an 11.6% increase year-on-year, and a gross margin of 34% [15] Future Projections - Revenue projections for 2025-2027 are estimated at 2.722 billion yuan, 3.552 billion yuan, and 4.522 billion yuan, with year-on-year growth rates of 38.4%, 30.5%, and 27.3% respectively. Net profit projections for the same period are 522 million yuan, 642 million yuan, and 809 million yuan, with growth rates of 201.8%, 23.1%, and 25.9% respectively [15][16]

Investment Rating - The report maintains a "Buy" rating for Jinlei Co., Ltd. (300443) [6] Core Insights - The company's Q2 performance exceeded market expectations, with a significant increase in revenue and profit [6] - The wind power business is experiencing a high growth cycle, contributing to rapid development in the free forging segment [6] - The casting business has seen a substantial recovery, turning profitable due to increased demand and improved pricing [6] - Profit forecasts for 2025-2027 have been raised, reflecting enhanced profitability in wind power casting products [6] Financial Data and Earnings Forecast - Total revenue for H1 2025 reached 1.283 billion yuan, a year-on-year increase of 79.9% [6] - Net profit attributable to the parent company for H1 2025 was 188 million yuan, up 153.3% year-on-year [6] - The gross margin for H1 2025 was 23.5%, an increase of 2.5 percentage points year-on-year [6] - The company expects total revenue of 2.792 billion yuan for 2025, with a projected net profit of 498 million yuan [5][6] - Earnings per share (EPS) are forecasted to be 1.56 yuan for 2025, increasing to 2.53 yuan by 2027 [5][6]

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].