Core Viewpoint - Best's net profit attributable to shareholders for H1 2025 reached 148 million yuan, reflecting a year-on-year increase of 3.30%, with Q2 net profit at 79 million yuan, up 6.15% year-on-year and 13.94% quarter-on-quarter, indicating performance in line with expectations [1] Group 1 - The company is expanding its international market presence by establishing "Beiyonghua New Technology Co., Ltd." in Thailand, in response to the national "Belt and Road" initiative, with operations expected to commence in Q4 2025 [1] - Best is focusing on linear motion components, producing high-precision ball/roller screw assemblies, miniature screws, and high-precision linear guideways, which are already being utilized in well-known domestic machine tool manufacturers [1] - The company has achieved breakthroughs in the manufacturing level of C0 grade ball screw assemblies and has received initial orders from customers, showcasing its capabilities in precision machining [1] Group 2 - Best is leveraging its years of experience in tooling and fixture production to enter new sectors such as new energy components and industrial mother machines, aiming to create secondary and tertiary growth curves [1] - The company maintains a "recommended" rating, reflecting confidence in its ongoing strategic initiatives and market positioning [1]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected stock price increase of over 15% relative to the benchmark index within the next 12 months [7][12]. Core Insights - The company reported a revenue of 716 million yuan for H1 2025, reflecting a year-on-year growth of 2.73%. The net profit attributable to shareholders was 148 million yuan, up 3.30% year-on-year [1]. - The company is focusing on cost reduction and efficiency improvement, with Q2 2025 revenue reaching 367 million yuan, a year-on-year increase of 3.55% and a quarter-on-quarter increase of 4.93% [2]. - The gross profit margin for Q2 2025 was 35.21%, showing an increase of 1.03 percentage points year-on-year [2]. - The company is expanding its production capacity with the establishment of a wholly-owned subsidiary in Anhui and a new facility in Thailand expected to commence operations in Q4 2025 [3]. - The company is diversifying its product offerings in linear motion components, achieving significant breakthroughs in high-precision products and securing orders from well-known domestic machine tool manufacturers [4]. Financial Summary - Revenue projections for 2025-2027 are 1.614 billion yuan, 1.878 billion yuan, and 2.110 billion yuan, respectively, with corresponding net profits of 340 million yuan, 395 million yuan, and 451 million yuan [4][6]. - The earnings per share (EPS) are forecasted to be 0.68 yuan, 0.79 yuan, and 0.90 yuan for 2025, 2026, and 2027, respectively [4][6]. - The price-to-earnings (PE) ratios are projected to be 40, 34, and 30 for the years 2025, 2026, and 2027, respectively [4][6].