Core Viewpoint - Dongfang Precision (002611) has reported that its subsidiary, Baisheng Power, is a leading player in the domestic outboard motor industry, with products widely used in various sectors such as water recreation, fishing, emergency rescue, and maritime patrol [1] Group 1: Company Performance - Baisheng Power has achieved an average annual compound growth rate of over 20% in both revenue and net profit over the past five years, indicating a rapid growth phase [1] - The company has significant revenue growth potential in the future [1] Group 2: Product Development - Baisheng Power's newly launched 300-horsepower gasoline outboard motor has received positive market feedback, laying a solid foundation for future capacity release and sales growth [1]

Core Viewpoint - Dongfang Precision (002611) has successfully launched its new manufacturing base in Suzhou, which is expected to enhance production capacity and sales growth for high-horsepower outboard engines [1] Group 1: Manufacturing and Production - The new factory is primarily focused on the production of high-horsepower outboard engine models and features advanced intelligent production workshops, outboard engine assembly lines, and robotic spraying technology [1] - The ramp-up of production capacity is progressing smoothly and aligns with the company's expectations [1] Group 2: Product Development and Market Response - The newly launched 300-horsepower gasoline outboard engine has received positive market feedback, establishing a solid foundation for future capacity release and sales growth [1] Group 3: Subsidiary Operations - The subsidiary Fosber's new corrugated cardboard production line is set to officially commence operations in May 2025, with current capacity release showing positive results [1]

Core Viewpoint - Chinese companies are increasingly selling off assets in Europe as a strategic response to rising political risks, exemplified by the recent sale of Fosber Group by Dongfang Precision to an American firm for €774 million, despite the company being highly profitable and a significant revenue contributor [5][12][34]. Group 1: Company Actions - Dongfang Precision sold its Italian subsidiary Fosber Group, a leader in corrugated cardboard production, to the American Brookfield Group for €774 million (approximately 6.3 billion RMB) [12][27]. - The sale occurred at a time when Fosber was generating nearly 70% of Dongfang Precision's revenue and experiencing significant profit growth [10][23]. - The decision to sell was influenced by the political climate in Europe, particularly following the "Anshi Incident" in the Netherlands, which raised concerns about potential government interventions in foreign-owned companies [16][21]. Group 2: Market Context - The sale reflects a broader trend of Chinese companies reassessing their investments in Europe due to increasing political risks and regulatory scrutiny [39][41]. - The transaction allowed Dongfang Precision to realize a significant return on investment, with the asset appreciating over seven times since its acquisition for €74 million a decade ago [29]. - The move is seen as a strategic shift for Dongfang Precision, redirecting funds into critical domestic sectors such as high-end power and robotics, aiming to reduce reliance on European manufacturing [32][34]. Group 3: Industry Implications - The political climate in Europe is causing a retreat of Chinese investments, with companies like Ningbo Huaxiang facing harsher consequences and opting for "tail-cutting" strategies [36][39]. - The exit of Chinese firms could lead to significant disruptions in European supply chains, particularly in the automotive sector, where companies like Volkswagen and BMW rely on Chinese suppliers [41][43]. - The European market may struggle to maintain its manufacturing capabilities without the technological and financial support from Chinese investments, raising concerns about the long-term viability of its industrial base [43][45].

Core Viewpoint - The company plans to sell 100% equity of Fosber Group, Fosber Asia, and Tiruña Asia to Foresight US and Foresight Italy for a total base price of €774 million, marking a strategic shift to divest from corrugated cardboard business and increase investment in emerging industries [2][3] Group 1: Transaction Details - The transaction involves the sale of three companies, with Fosber Group valued at €637 million, Fosber Asia at €125 million, and Tiruña Asia at €12.036 million, plus additional interest and deductions for losses [2] - The deal includes a contingent consideration of up to €25 million based on the gross profit and gross margin of the target group from August 2025 to December 2026 [2] - The transaction is subject to approval from the company's board, shareholders, and various international regulatory bodies [2] Group 2: Financial Impact - The target companies are expected to generate an unaudited revenue of ¥3.211 billion in 2024, accounting for 67.2% of the company's revenue during the same period [3] - Proceeds from the sale will enhance the company's financial strength and support investments in new productive capacities [3] Group 3: Strategic Focus - Post-transaction, the company will focus on increasing investment in its subsidiary, Baisheng Power, which has achieved mass production of 300-horsepower gasoline outboard motors, breaking the monopoly of American and Japanese manufacturers [3] - The company aims to concentrate on strategic emerging industries in manufacturing, including industrial internet and digital printing equipment upgrades [3] - This divestment is part of the company's ongoing strategy since 2020 to promote technological transformation and optimize resource allocation [3]

Core Viewpoint - Dongfang Precision (002611) plans to sell 100% equity of Fosber Group, Fosber Asia, and Tiru a Asia to Foresight US and Foresight Italy for a total base price of €774 million, marking a strategic restructuring to divest from the corrugated cardboard business and increase investment in emerging industries [1][2] Group 1: Transaction Details - The selling entity includes Dongfang Precision and its wholly-owned subsidiary Dongfang Precision (Netherlands) [1] - The transaction price is structured using a locked box mechanism, with base prices set at €637 million for Fosber Group, €125 million for Fosber Asia, and €12.036 million for Tiru a Asia, plus interest and deductions for losses [1] - An additional contingent payment of up to €25 million may be awarded based on the target group's gross profit from August 2025 to December 2026 and the gross profit margin for the fiscal year 2026 [1] Group 2: Strategic Implications - The transaction is expected to constitute a major asset restructuring, with the target companies projected to generate an unaudited revenue of ¥3.211 billion, accounting for 67.2% of Dongfang Precision's revenue during the same period [2] - Post-transaction, Dongfang Precision will divest its corrugated cardboard production line and focus resources on its core business, particularly increasing investment in its subsidiary, Baisheng Power, which has achieved mass production of 300-horsepower gasoline outboard motors [2] - The company aims to enhance its strategic focus on emerging industries, including industrial internet and digital printing equipment, as part of its technology transformation strategy initiated in 2020 [2]

Group 1 - The core point of the article is that Dongfang Precision (002611) announced on September 1 that its subsidiary, Baisheng Power, successfully achieved mass production and delivery of a 300-horsepower gasoline outboard motor by March 2025, making it the first company in China to mass-produce this type of engine [1]

Core Viewpoint - The company, Dongfang Precision, highlights its subsidiary, Baisheng Power, as a leading player in the outboard motor industry, emphasizing its recent achievements and growth trajectory in the marine economy sector [1] Company Overview - Baisheng Power has maintained the highest market share in China's outboard motor sector from 2020 to 2022, marking its position as a top enterprise [1] - The company successfully launched the production of a 300-horsepower gasoline outboard motor in March 2025, becoming the first in China to do so, thus filling a significant gap in the high-horsepower gasoline outboard motor manufacturing field [1] - In the first half of 2025, Baisheng Power introduced its first intelligent top-flow machine product, which is expected to create a new growth curve for the company [1] Financial Performance - In the first half of 2025, Baisheng Power achieved revenue of 485 million yuan, representing a year-on-year increase of approximately 28%, and net profit of 58 million yuan, up 13% year-on-year, both setting historical highs for the first half of the year [1] - Since 2021, Baisheng Power has entered a rapid growth phase, with revenue and net profit in the first half of 2025 more than doubling compared to the same period in 2021 [1] Industry Position - Baisheng Power's emissions testing center has become the first in the outboard motor industry to receive CNAS certification, establishing a professional testing platform in the high-horsepower gasoline outboard motor segment and reinforcing its industry-leading status [1]

Core Viewpoint - Oriental Precision's strong performance in the first half of 2025 is primarily driven by its waterborne power equipment segment, particularly the historical highs achieved by its subsidiary, Baisheng Power [1][2][3]. Group 1: Financial Performance - In the first half of 2025, Oriental Precision reported revenue of 2.159 billion yuan, a slight decrease of 0.1% year-on-year [1][3]. - The net profit attributable to shareholders reached 397 million yuan, marking a significant increase of 142.52% year-on-year [1][3]. - The net profit after deducting non-recurring items was 257 million yuan, reflecting a year-on-year growth of 12.12% [3]. Group 2: Business Segments - The company operates two main business segments: intelligent packaging equipment and waterborne power equipment, both contributing to its revenue growth [2][3]. - The intelligent packaging equipment segment achieved record revenue in 2024, with the corrugated paper packaging equipment maintaining the top market share in China and ranking among the top two globally [2]. - Baisheng Power, a subsidiary, reported revenue of 485 million yuan in the first half of 2025, a year-on-year increase of approximately 28%, and net profit of 58 million yuan, up 13% [2][3]. Group 3: Global Expansion and Innovation - Oriental Precision is accelerating global capacity upgrades and investing in new production capabilities to enhance its core competitiveness [1][4]. - The company has established a global asset layout with R&D and production bases in Asia, Europe, the United States, and Mexico, serving over 100 countries and regions [4]. - The company has increased its R&D investment, resulting in 491 authorized patents and 84 software copyrights by the end of 2024, reflecting a commitment to technological innovation [4]. Group 4: Strategic Investments - While strengthening its core business, Oriental Precision adheres to a "1+N" development strategy and a path of "industry-based + capital-driven" growth [5]. - The company is actively investing in areas such as embodied intelligence, robotics, and commercial aerospace, forming a comprehensive investment layout across the entire industry chain [5].

Core Insights - The company, established in 1996, is a pioneer in the development and production of intelligent corrugated paper packaging equipment and has diversified into two main business segments: intelligent packaging equipment and marine power equipment since its IPO in 2011 [1] - In the first half of 2025, the company reported a total revenue of 2.159 billion yuan, a slight decrease of 0.1% year-on-year, while net profit attributable to shareholders reached 397 million yuan, marking a significant increase of 142.5% [1] - The company has a global market share of approximately 15% in the corrugated paper packaging sector, ranking first among domestic peers and second globally [1] - The company has made strategic investments in the "Artificial Intelligence + Robotics" sector, acquiring a 2.83% stake in Leju Robotics and establishing partnerships with multiple robotics firms [2] Financial Performance - For the first half of 2025, the company achieved a net profit of 397 million yuan, which is a 142.5% increase year-on-year, and a non-recurring net profit of 257 million yuan, up 12.1% [1] - The company is projected to achieve net profits of 806 million yuan, 999 million yuan, and 1.223 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 28.68, 23.13, and 18.89 [3] Strategic Initiatives - The company signed a strategic cooperation agreement with Leju Robotics to collaborate on manufacturing humanoid robots, skill training, and market expansion across various sectors [2] - The company has invested in three projects in the AI and robotics field, including Leju Robotics, which focuses on core robotics technology and product development [2] Market Position - The company is recognized as the first in China to mass-produce a 300-horsepower gasoline outboard motor, enhancing its position in the marine power equipment market [1] - The company is actively expanding its footprint in the robotics sector, aiming to leverage its resources to assist partners in penetrating industrial manufacturing, commercial services, and educational sectors [2]

Core Viewpoint - The company reported a stable growth in operating performance for the first half of 2025, with a slight decrease in overall revenue but a significant increase in net profit and net profit excluding non-recurring items [5][6]. Financial Performance - For the first half of 2025, the company achieved total operating revenue of approximately 2.159 billion yuan, a year-on-year decrease of 0.1% [5]. - The net profit attributable to shareholders was approximately 397 million yuan, representing a year-on-year increase of 142.52% [5]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately 256 million yuan, showing a year-on-year growth of 12.12% [5]. Business Segment Overview Waterborne Power Equipment Segment - The subsidiary, Baisheng Power, achieved operating revenue of 485 million yuan, a year-on-year increase of approximately 28%, and a net profit of 58 million yuan, up 13% [6]. - Baisheng Power became the first company in China to mass-produce a 300-horsepower gasoline outboard motor, marking a significant milestone in the industry [6][7]. - The company launched its first intelligent top-flow machine product, which is the first foldable structure top-flow machine in China, entering mass production [7][10]. - Operational efficiency improved significantly with the implementation of the U9 EPR system, leading to a notable decrease in inventory turnover days and a substantial increase in operating cash flow [8]. Intelligent Packaging Equipment Segment - The Fosber Group maintained a stable order intake in the first half of 2025, with a focus on expanding into emerging markets like Latin America and Africa [11][12]. - Fosber Asia achieved record-high performance in the domestic market, with significant growth in new orders and revenue [13]. - The new factory of Fosber Asia, with an annual production capacity of 40 lines, was successfully launched, supporting the growth of its business [13]. Digital Printing Equipment Segment - The subsidiary, Wande Digital, launched an upgraded "digital printing all-in-one machine," which gained popularity in the domestic market [15]. External Business Development - The company is focusing on external growth through strategic investments, particularly in the fields of "artificial intelligence + robotics" and "controlled nuclear fusion key structural materials + nuclear power equipment" [16][18]. - The company increased its stake in Guizhou Aerospace New Power Technology Co., Ltd. to 19.89%, recognizing its strong technological capabilities in nuclear power components [21][23]. - The company is also investing in sectors with significant technological barriers and future growth potential, such as aerospace and new materials, to explore new directions for development [24].