Investment Rating - The report upgrades the investment rating of Haitian International to "Buy" with a target price of HK$26.00, revised from HK$25.12 [1]. Core Insights - Haitian International reported strong mid-year performance with overseas sales growth exceeding expectations, while domestic sales remained stable. The shift of supply chains from mainland China to Southeast Asia is driving overseas sales growth, which is expected to continue for the remainder of the year. This trend may offset weak domestic sales [1]. - Revenue forecasts for 2025-2027 have been adjusted to RMB 17,949 million (+1.2%), RMB 17,711 million (+0.1%), and RMB 20,309 million (+1.0%) respectively. Expected earnings per share for 2025, 2026, and 2027 are RMB 2.127 (+2.6%), RMB 2.032 (+1.4%), and RMB 2.301 (+1.7%) respectively [1][2]. Financial Performance Summary - For the first half of 2025, revenue reached RMB 90.18 billion, a quarter-on-quarter increase of 11.2%. The sales structure saw slight changes, with the Jupiter series showing a quarter-on-quarter growth [1]. - The overseas sales amounted to RMB 38.18 billion, a year-on-year increase of 34.7% and a quarter-on-quarter increase of 20%. Notably, revenue from Southeast Asia grew significantly, reaching RMB 17.83 billion, a year-on-year increase of 90.0% [1]. - Domestic sales remained stable at RMB 52.01 billion, with a year-on-year growth of 0.3% and a quarter-on-quarter growth of 5.5% [1]. Financial Projections - The report provides detailed financial projections, including total revenue, net profit, and earnings per share for the years 2023 to 2027. For instance, the projected net profit for 2025 is RMB 3,395 million, with an EPS of RMB 2.127 [2][15]. - The gross margin is expected to be around 32.9% in 2025, with operating profit margin and net margin projected at 21.9% and 18.9% respectively [16]. Market Position - Haitian International's market capitalization is approximately HK$34,442 million, with a share price of HK$21.580. The company holds a significant position in the injection molding machine market, contributing to its robust overseas sales performance [1][2].

Group 1 - The company has downgraded its rating to "Accumulate" and reduced the target price to HK$25.12 due to nearing peak domestic demand and uncertain overseas demand, limiting growth possibilities for 2025 [1] - The company's net profit forecasts for 2025-2027 have been decreased to RMB3,309 million (-0.9%), RMB3,198 million (-7.2%), and RMB3,611 million respectively, with earnings per share projected at RMB2.073 (-0.9%), RMB2.004 (-7.2%), and RMB3.198 [1] - Revenue for 2024 was RMB16,128 million, exceeding expectations by 6.6%, while net profit was RMB3,080 million (+0.2%), attributed to an expansionary sales approach to clear obsolete inventory [1] Group 2 - The company is expected to have its overseas production bases operational by the end of 2025, which will allow for local production of PIMMs and competitive pricing by avoiding tariffs [2] - The company has three overseas plants in production: Chenai India, Ruma Serbia, and Niigata Japan, expected to be operational by December 2025, December 2025, and August 2025 respectively [2] - Capital expenditure is projected to remain high at approximately RMB100 million for 2025 to equip the new plants, with revenue growth anticipated through increased market share starting in early 2026 [2]