Core Viewpoint - 双林股份 has shown significant growth in revenue and profit for the first three quarters of 2025, with a strong focus on expanding its robot screw rod business and enhancing production capacity [3][4][8]. Financial Performance - For the first three quarters of 2025, the company reported a revenue of 3.855 billion yuan, representing a year-on-year increase of 19.12% - The net profit attributable to shareholders was 402 million yuan, up 9.77% year-on-year - The net profit excluding non-recurring gains and losses reached 349 million yuan, marking a substantial increase of 45.57% year-on-year, indicating improved profitability in core operations [3]. Robot Screw Rod Business - The company is actively expanding its robot screw rod business, focusing on customer development and production capacity planning [4]. - Collaborations with two leading domestic new energy vehicle manufacturers have been established for humanoid robot projects, with successful sample deliveries and positive feedback [5]. - In the overseas market, the company secured small batch orders from a leading foreign screw rod manufacturer, marking a significant achievement in international collaboration [5]. Production Capacity Planning - The company has outlined clear production capacity plans for its robot screw rod products: - Rolling screw rods: Planned annual capacity of 1 million sets, with 100,000 sets/year production line to be established within the year - Ball screw rods: 100,000 sets/year capacity expected by February 2026, with rapid expansion based on market demand - Linear joint modules: Initial capacity of 120,000 sets/year expected to reach full capacity by the end of 2025, with a target of 500,000 sets/year by 2026 [6]. Technological and Cost Advantages - The company’s subsidiary, Kezhixin, is set to launch a new generation of grinding equipment in November 2025, significantly improving processing efficiency and precision [7]. - By acquiring Kezhixin, the company has reduced production costs for screw rods, allowing for competitive pricing below international levels, aiming to break the import monopoly [7]. Other Important Topics - The company has submitted an application for H-share issuance to enhance capital strength and support international expansion [8]. - The automotive production schedule for the fourth quarter is expected to show a quarter-on-quarter increase, driven by new projects and local production capabilities [8]. - Research and development investments have increased, primarily due to the focus on the robot screw rod business, with confidence in achieving annual net profit targets [8].

Financial Performance - In the first three quarters of 2025, the company achieved a revenue of CNY 3.855 billion, representing a year-on-year growth of 19.12% [3] - The net profit attributable to shareholders was CNY 402 million, up 9.77% year-on-year [3] - The net profit excluding non-recurring gains and losses reached CNY 349 million, showing a significant increase of 45.57% [3] Business Development - The company has made clear progress in customer expansion and capacity construction for its robotic screw rod business, collaborating with two leading domestic new energy vehicle companies [4] - The production capacity for linear joint modules is planned at 500,000 sets per year, with a target to reach full capacity by the end of 2025 [5] - The company is also developing a product matrix around core transmission components, including various types of screw rods and joint modules [7] Production Efficiency - The new grinding equipment developed by the subsidiary is expected to enter mass production in November 2025, significantly improving processing efficiency to 30 minutes per piece [6] - The company plans to achieve a production capacity of 1 million screw rods per year, with a clear strategy for rapid capacity expansion based on market demand [20] International Collaboration - The company has successfully secured small batch orders from a leading foreign screw rod manufacturer, marking a significant step in international recognition of its technical capabilities [10] - Ongoing cooperation includes not only screw rod orders but also discussions on other vehicle components, indicating a deepening strategic partnership [10] Market Outlook - The company anticipates a potential increase in automotive production in Q4 2025, driven by new projects and existing business growth [15] - The wheel hub bearing business achieved a revenue of CNY 978 million in the first three quarters, with a gross margin of 19.9% [16] Future Plans - The company is exploring the development of ceramic bearings and has initiated research in this area [12] - Plans for H-share issuance have been submitted, aiming to enhance capital strength and support internationalization strategies [14] - The company is optimistic about achieving its performance targets set in the recent equity incentive plan, supported by strong growth in its core business areas [23]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company achieved a revenue of 2.52 billion yuan in H1 2025, representing a year-on-year increase of 20.1%, with a net profit attributable to shareholders of 290 million yuan, up 15.7% year-on-year [1] - In Q2 2025, the company reported a revenue of 1.24 billion yuan, with a year-on-year increase of 19.1% but a quarter-on-quarter decrease of 3.7%. The net profit attributable to shareholders was 130 million yuan, down 25.1% year-on-year and 19.8% quarter-on-quarter [1] - Excluding one-time compensation from H1 2024, the company's Q2 2025 net profit attributable to shareholders, excluding non-recurring items, was 110 million yuan, reflecting a year-on-year increase of 33.1% but a quarter-on-quarter decrease of 13.8% [1] - The company's gross margin in Q2 2025 was 19.8%, a decrease of 1.8 percentage points quarter-on-quarter, primarily due to the increased proportion of electric drive business [1] Business Segments Summary - In H1 2025, the revenue from interior and exterior trim and electromechanical components was 1.34 billion yuan, up 11.0% year-on-year; wheel hub bearings revenue was 620 million yuan, up 2.3% year-on-year; and the new energy electric drive business revenue was 440 million yuan, up 93.8% year-on-year [1] - The company has established three high-end wheel hub bearing production lines in its Thailand factory, achieving localized production and obtaining necessary certifications [2] - The company is accelerating the rollout of its screw rod business, with several products in the sampling and verification stages for major domestic new energy vehicle manufacturers [2] Financial Forecast and Valuation - The company is expected to achieve net profits attributable to shareholders of 520 million yuan, 650 million yuan, and 760 million yuan for the years 2025, 2026, and 2027, respectively, corresponding to price-to-earnings ratios of 52, 42, and 36 times [3] - The projected revenue for 2025 is 5.755 billion yuan, with a year-on-year growth rate of 17.2% [4]