Core Insights - Puyuan Precision Electric (stock code: 688337.SH) reported a revenue of 355 million yuan in the first half of 2025, representing a year-on-year growth of 15.57%, and a net profit attributable to shareholders of 16.22 million yuan, a significant increase of 112.10% [1] - The company achieved notable progress in core technology breakthroughs, high-end product volume, and solution transformation, driving its leadership in the domestic substitution process [1] Group 1: Core Technology and Product Performance - The sales revenue of products equipped with the company's self-developed core technology platform accounted for 44.70% of total sales, an increase of 3.86 percentage points year-on-year, with 85.60% of digital oscilloscope products utilizing this technology [2] - High-end products saw a revenue increase of 42.29%, with high-end digital oscilloscopes (bandwidth ≥ 2GHz) contributing 29.70% to overall digital oscilloscope sales, marking a year-on-year surge of 40.61% [2] - The DHO series high-resolution digital oscilloscopes experienced a revenue growth of 23.93%, indicating sustained growth in the mid-range product market [2] Group 2: Market Position and Competitive Edge - Puyuan Precision Electric ranks fifth in the global oscilloscope market and is the only Chinese company in the top five, with 441 authorized invention patents, establishing a strong technical barrier [3] - The 13GHz bandwidth real-time digital oscilloscope DS80000 series launched in 2023 has become a benchmark product in the semiconductor and communication sectors [3] Group 3: Solution Transformation and Industry Growth - The company's revenue from solutions reached 62.48 million yuan, a year-on-year increase of 44.12%, driven by the technical synergies from the acquisition of Beijing Puyuan Nais Electronics Co., Ltd. in 2024 [4] - Solutions in the communication sector cover a wide range of components and services, aiding customers in accelerating product development and deployment [4] - The semiconductor testing solutions are emerging as a growth highlight, addressing testing needs in chip design, wafer manufacturing, and packaging [4] Group 4: Financial Performance and R&D Investment - The overall gross margin for the first half of 2025 was 55.39%, a decrease of 1.28 percentage points year-on-year, influenced by manufacturing cost changes and market competition [5] - R&D expense ratio reached 30.53%, an increase of 1.90 percentage points year-on-year, with a focus on 5G communication and high-speed signal processing technologies [5] - The company has improved its cost control while maintaining R&D intensity, as indicated by the decrease in R&D expense ratio by 1.92 percentage points in Q2 2025 [5] Group 5: Brand Influence and Market Outlook - The "RIGOL" brand has expanded its influence globally, covering over 90 countries and regions, establishing itself as an innovation benchmark in the electronic measurement instrument industry [6] - The global electronic measurement instrument market is projected to reach 112.48 billion yuan by 2025, with the Chinese market expected to reach 42.29 billion yuan, driven by rapid developments in downstream industries [6] - Puyuan Precision Electric is accelerating its transformation from a device supplier to a solution service provider, supported by national technology innovation strategies and industry growth trends [6]

Investment Rating - The investment rating for the company is "Outperform" (maintained) [1] Core Views - The company has signed a cooperation agreement with Xi'an University of Electronic Science and Technology to promote its high-end strategy, focusing on deep integration of industry, academia, and research [6] - The company is committed to high-end product development and has seen significant sales growth in its DS80000 series high-end digital oscilloscopes, with strong demand from strategic customers [6] - The electronic measurement instrument industry is expected to continue steady growth, with domestic companies accelerating their technological advancements and narrowing the gap with overseas competitors [6] Financial Data and Profit Forecast - Total revenue is projected to grow from 776 million in 2024 to 1,332 million by 2027, with a compound annual growth rate (CAGR) of approximately 18.2% [5][8] - The net profit attributable to the parent company is expected to increase from 92 million in 2024 to 262 million by 2027, reflecting a significant growth trajectory [5][8] - The company's gross margin is forecasted to improve from 59.1% in 2024 to 62.7% in 2027, indicating enhanced profitability [5]

Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company is a leading player in the domestic general electronic measurement instrument sector, benefiting from a large industry space and steady growth. The high-end product strategy is driving rapid new product launches and improving profitability, with solutions becoming a new important growth point. The 2024 revenue is expected to grow by 15.70% to 776 million yuan, while the net profit is projected to decrease by 14.50% to 92 million yuan [4][10] Financial Performance Summary - In 2024, the company achieved operating revenue of 776 million yuan, a year-on-year increase of 15.70%, while the net profit attributable to the parent company was 92 million yuan, a decrease of 14.50%. The first quarter of 2025 saw revenue of 168 million yuan, up 11.14%, but net profit dropped by 40.03% to 4 million yuan [1][10] - The gross margin for 2024 was 59.14%, an increase of 2.70 percentage points year-on-year, while the net margin was 11.90%, a decrease of 4.20 percentage points [2] - The company’s R&D expenses increased significantly due to the establishment of new R&D centers in Xi'an and Shanghai, leading to higher personnel costs and depreciation of R&D equipment [2][4] Product Development and Growth - The company is advancing its high-end product offerings, with a 39.21% year-on-year increase in revenue from products equipped with self-developed core technology platforms, accounting for 46.69% of total revenue. The sales of high-end digital oscilloscopes (bandwidth ≥ 2GHz) increased by 52.07% [3] - The company completed the acquisition of 100% of the shares of a company in the solutions field, marking a strategic deployment in this area [3] Share Buyback and Incentive Plans - The company announced a share buyback plan of 30 to 50 million yuan to be used for equity incentives at an appropriate time. Additionally, a new equity incentive plan was proposed, granting 2 million shares to 99 individuals, with performance targets set for 2025-2026 [4] Earnings Forecast - The forecast for net profit attributable to the parent company for 2025-2027 is 140 million, 184 million, and 237 million yuan respectively, with corresponding P/E ratios of 50, 38, and 29 [4][10]

Core Insights - The company, Puyuan Precision (688337), reported a revenue of 168 million yuan for Q1 2025, marking an 11.14% year-on-year growth despite macroeconomic pressures [1] - The growth is attributed to breakthroughs in core technology platforms, increased sales of high-end digital oscilloscopes, and rapid growth in solution-based business [1] Group 1: High-End Product Market Share - Sales revenue from products utilizing self-developed core technology surged by 39.21%, increasing their share of total revenue by 7.47 percentage points to 46.69% [2] - In the digital oscilloscope product line, self-developed platform products accounted for 87.55% of sales, up 14.79 percentage points year-on-year [2] - The DHO series high-resolution digital oscilloscopes saw a 33.33% increase in sales revenue, with high-end digital oscilloscopes (bandwidth ≥ 2GHz) experiencing a significant 52.07% growth compared to a 14.85% increase in 2024 [2] - The company's gross margin improved by 1.34 percentage points to 56.15%, the highest in nearly three years [2] Group 2: R&D Investment and Strategy - The company's R&D expense ratio reached 31.54%, with Q1 R&D investment totaling 52.93 million yuan, a 22.92% year-on-year increase [3] - The focus of R&D is shifting towards solutions rather than single products, targeting areas such as 5G communication testing, high-voltage isolation for new energy detection, and semiconductor measurement [3] - The solutions business generated 27.86 million yuan in revenue, growing by 47.89%, indicating a strong momentum following a 125.84% growth in 2024 [3] Group 3: Strategic Positioning and Market Trends - The company's growth is supported by a successful acquisition strategy, particularly the acquisition of Nais Electronics, which enabled the rapid launch of modular instrument products [4] - The DHO series oscilloscopes are gaining traction against international competitors due to their cost-performance advantages, particularly in the communication and semiconductor sectors [4] - The current technological breakthroughs and market advantages position the company to benefit from the global shift of the electronic measurement instrument industry towards China, potentially leading to accelerated revenue and profit growth [4]