Core Viewpoint - The company reported its 2025 H1 results, showing revenue growth and a shift towards profitability in Q2, indicating a potential turning point in performance [2][6]. Financial Performance - In 2025 H1, the company achieved revenue of 2.908 billion yuan, a year-on-year increase of 43.46%, while the net profit attributable to shareholders was -87 million yuan, and the net profit excluding non-recurring items was -115 million yuan [2]. - For Q2 2025, the company recorded revenue of 1.580 billion yuan, with a quarter-on-quarter increase of 38.90% and a year-on-year increase of 18.98%. The net profit attributable to shareholders was 33 million yuan, marking a return to profitability [2]. Business Segments - The electronic products segment generated revenue of 2.546 billion yuan in 2025 H1, up 51.56% year-on-year, while the R&D services and solutions segment brought in 355 million yuan, a 4.30% increase. The high-level intelligent driving solutions segment saw a significant decline, with revenue of only 3 million yuan, down 96.25% [3]. - The company has developed a product model combining distributed electronic control units, domain control products, and L4 integrated platforms, achieving mass production [3]. Strategic Partnerships - The company has established strategic partnerships with various firms, including a collaboration with Zijing Semiconductor for RISC-V architecture-based automotive-grade chips, and with Baixiniu for high-reliability unmanned vehicle products [5]. R&D and Cost Management - The company is in a critical phase of performance release, with several high-investment projects beginning to contribute to revenue. In Q2 2025, the R&D expense ratio was 12.11%, showing a significant decrease compared to previous quarters [6]. - The company’s operating expense ratio for Q2 2025 was 22.06%, benefiting from economies of scale, with both sales and management expense ratios declining [6]. Profit Forecast and Investment Rating - The company maintains revenue forecasts for 2025-2027 at 7.15 billion, 8.04 billion, and 9.29 billion yuan, representing year-on-year growth of 29%, 13%, and 16%, respectively. The net profit forecasts for the same period are 23 million, 174 million, and 266 million yuan, with corresponding P/E ratios of 618, 81, and 53 times [7].

Core Viewpoint - The company achieved a turnaround in profitability in Q2 2025, with diversified business development and a "buy" rating from Dongwu Securities [1][3]. Financial Performance - In H1 2025, the company reported revenue of 2.908 billion yuan, a year-on-year increase of 43.46%, with a net profit of -87 million yuan and a non-recurring net profit of -115 million yuan. In Q2 2025, revenue reached 1.580 billion yuan, with a quarter-on-quarter increase of 38.90% and a year-on-year increase of 18.98%. The net profit for Q2 was 33 million yuan, marking a return to profitability [1][2]. Business Segments - The electronic products segment generated revenue of 2.546 billion yuan in H1 2025, up 51.56% year-on-year. The R&D services and solutions segment earned 355 million yuan, a 4.30% increase, while the high-level intelligent driving solutions segment saw a significant decline of 96.25%, generating only 30,000 yuan [2]. Product Development - The company has established a product model combining distributed electronic control units, domain control products, and L4 integrated platforms, achieving mass production. Key software products include INTEWORK, ModelBase, and OrienLink, serving clients such as Hongqi, BYD, NIO, and others [2]. International Expansion - The company operates modern factories in Tianjin, Nantong, Nanchang, and Malaysia, and has secured contracts with several international OEMs and Tier 1 suppliers, including Stellantis and Scania [2]. Strategic Partnerships - The company has signed strategic cooperation agreements with various firms, including a partnership with Zijing Semiconductor for RISC-V architecture-based automotive-grade chips and collaborations with Baixin Rhino and Fuwei Hailada for smart hardware and innovative lighting solutions [3]. R&D and Cost Management - R&D expenses have decreased significantly, with a Q2 2025 R&D expense ratio of 12.11%, down 9.59 percentage points quarter-on-quarter. The overall expense ratio for Q2 was 22.06%, benefiting from economies of scale [3]. Profit Forecast - The company maintains revenue forecasts of 7.15 billion yuan, 8.04 billion yuan, and 9.29 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 29%, 13%, and 16%. Net profit forecasts for the same years are 2.3 million yuan, 17.4 million yuan, and 26.6 million yuan, corresponding to P/E ratios of 618, 81, and 53 [3].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a turnaround in net profit in Q2 2025, with a revenue of 1.58 billion yuan, marking a 38.90% increase quarter-on-quarter and an 18.98% increase year-on-year [7] - The company is diversifying its business, with significant growth in electronic products and new client acquisitions [7] - The company is in a critical phase of performance release, with multiple high-investment projects beginning to contribute to revenue [7] Financial Summary - Total revenue for 2023 is projected at 4.678 billion yuan, with a year-on-year growth of 16.30% [1] - The company expects to achieve a total revenue of 7.149 billion yuan in 2025, representing a year-on-year increase of 29.02% [1] - The net profit for 2025 is forecasted to be 22.84 million yuan, a significant recovery from previous losses [1] - The earnings per share (EPS) is expected to be 0.19 yuan in 2025, with a projected P/E ratio of 617.51 [1] - The company’s R&D expenses have decreased significantly, indicating improved cost management [7] - The company has established strategic partnerships to enhance its technological capabilities and product offerings [7]

Core Views - The company reported a significant increase in revenue for the first half of 2025, with total revenue reaching approximately 2.91 billion RMB, a 43.48% increase compared to the same period in 2024 [4][5] - The net loss attributable to shareholders narrowed to approximately 86.96 million RMB, a reduction of 24.64 million RMB from the previous year, indicating improved financial performance [5][13] - The company continues to focus on electronic systems for the automotive and intelligent transportation sectors, providing a wide range of electronic products and solutions [8][10] Company Overview - Beijing Jingwei Hirain Technologies Co., Ltd. specializes in electronic systems, particularly for the automotive industry, and has established a comprehensive product matrix covering over 80% of automotive electronic components [9][10] - The company has set up four major production bases in China and Malaysia, enhancing its integrated supply chain capabilities [16] - The workforce consists of 6,681 employees, with 75% being R&D and technical personnel, reflecting a strong emphasis on innovation and technical expertise [17][18] Financial Performance - The total assets of the company as of June 30, 2025, were approximately 9.46 billion RMB, showing a slight increase of 0.58% from the end of the previous year [4] - The company’s R&D investment as a percentage of revenue decreased to 18.52%, down from 31.27% in the previous year, indicating a shift in financial strategy [4] - The basic earnings per share for the first half of 2025 were -0.77 RMB, an improvement from -2.88 RMB in the same period last year [4] Industry Context - The automotive market in China showed robust growth in the first half of 2025, with production and sales exceeding 15.6 million units, marking a year-on-year increase of 12.5% and 11.4% respectively [7][8] - The demand for new energy vehicles (NEVs) surged, with production and sales reaching approximately 6.97 million units, reflecting a growth of 41.4% and 40.3% year-on-year [7][8] - The industry is experiencing intensified competition, particularly in the NEV sector, as traditional fuel vehicle sales decline and consumer preferences shift towards advanced driving assistance systems and smart cockpit features [8][9]

Core Insights - The company Jingwei Hengrun has reported continuous growth in the shipment of its physical area controller ZCU products since mass production began in partnership with Xiaomi Automotive last year, contributing significantly to revenue and securing multiple model project allocations from a leading client [2] - The central computing platform CCP products, which support XPeng, have also seen a steady increase in shipments; additionally, the company's body domain controller has successfully assisted Foton's Biaoqiao light truck NP6 in passing the latest European information security regulations and achieving mass production, marking the official launch of commercial vehicle domain control products in Europe [2] R&D Investment and Achievements - The company's R&D investments focus on intelligent driving, body domain control, new energy and power, chassis control, AR HUD, and self-developed software tools, with notable achievements as follows: - In intelligent driving, the company has launched a new generation of ADAS products utilizing 8-megapixel cameras, with shipments expected to exceed 1 million sets in 2024 [2] - In body domain control, the ZCU and CCP products have seen continuous shipment increases, becoming significant sources of revenue growth for the company [2] - In new energy and power, the multi-in-one controller XCU has successfully entered mass production in partnership with Geely's Xingyuan; BMS product revenue continues to grow with overseas client allocations; Stellantis VCU product project shipments are also on the rise [2] - In chassis control, the company's chassis domain controller products are supporting Changan's Avita and are gradually ramping up production; rear-wheel steering products are set to enter mass production this year for a high-end smart brand [2] AR HUD and Self-Developed Software - In the AR HUD sector, the company has recently secured multiple model project allocations that will enter mass production, with this product being one of the higher value offerings per vehicle [3] - In the self-developed software domain, the main software series products INTEWORK, ModelBase, and OrienLink have expanded their customer base and applications, covering clients such as Hongqi, BYD, NIO, Changan, Heavy Truck, Leap Motor, Baidu Apollo, Zeekr, GAC, Seres, and Bosch [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company is experiencing short-term pressure on performance, but new customers and projects are emerging across multiple areas, indicating potential for recovery [4][6] - In 2024, the company achieved a revenue of 5.541 billion yuan, a year-on-year increase of 18.46%, but reported a net loss attributable to shareholders of 550 million yuan, which is a larger loss compared to the previous year [4][5] - The first quarter of 2025 showed a revenue of 1.328 billion yuan, a significant year-on-year growth of 49.34%, with a reduced net loss of 120 million yuan [4] - The company has adjusted its earnings forecasts for 2025-2026 and introduced a forecast for 2027, expecting net profits of -60 million yuan, 190 million yuan, and 329 million yuan respectively for those years [4][7] Financial Performance Summary - In 2024, the company's gross margin was 21.51%, down 4.09 percentage points year-on-year, primarily due to intensified industry competition and changes in revenue structure [5] - The company’s R&D expenses reached 1.239 billion yuan in 2024, reflecting a 15.78% increase as it continues strategic investments in R&D [5] - The electronic products business is the main growth driver, with revenues of 4.406 billion yuan in 2024, up 28.89% year-on-year [6] - The company’s projected earnings per share (EPS) for 2025, 2026, and 2027 are -0.50 yuan, 1.58 yuan, and 2.74 yuan respectively, with corresponding price-to-earnings (P/E) ratios of -154.8, 49.0, and 28.3 [4][7] Business Development - The company is expanding its customer base and project portfolio, with notable developments in the electronic products and advanced driving solutions sectors [6] - Recent product launches include commercial vehicle domain control products in Europe and mass production of central computing platforms for popular vehicle models [6] - The company has successfully expanded its client base for R&D services to include major automotive brands such as Hongqi, BYD, and NIO [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company is experiencing short-term pressure on performance, but new customers and projects are emerging across multiple areas, indicating potential for recovery [4][6] - The company reported a revenue of 5.541 billion yuan in 2024, a year-on-year increase of 18.46%, but a net loss of 550 million yuan, which is a larger loss compared to the previous year [4][5] - For Q1 2025, the company achieved a revenue of 1.328 billion yuan, a year-on-year growth of 49.34%, with a net loss of 120 million yuan, showing a narrowing of losses compared to the previous year [4] - The company has adjusted its earnings forecasts for 2025-2026 and introduced a forecast for 2027, expecting net profits of -60 million yuan, 190 million yuan, and 329 million yuan respectively for those years [4][7] Financial Performance Summary - In 2024, the company's main business gross margin was 21.51%, down 4.09 percentage points year-on-year, primarily due to intensified industry competition and changes in revenue structure [5] - The company’s R&D expenses reached 1.239 billion yuan in 2024, an increase of 15.78% year-on-year, reflecting ongoing strategic investments in R&D [5] - The electronic products business is the main growth driver, with revenues of 4.406 billion yuan in 2024, a year-on-year increase of 28.89% [6] - The company has launched new products in Europe and expanded its customer base for R&D services, indicating a broadening of its market presence [6] Financial Projections - The company’s projected revenues for 2025, 2026, and 2027 are 7.087 billion yuan, 8.688 billion yuan, and 10.311 billion yuan respectively, with year-on-year growth rates of 27.9%, 22.6%, and 18.7% [7][9] - The projected EPS for 2025, 2026, and 2027 are -0.50 yuan, 1.58 yuan, and 2.74 yuan respectively, with corresponding P/E ratios of -154.8, 49.0, and 28.3 [7][9]

Core Viewpoint - The company reported its 2024 annual results and Q1 2025 results, which met expectations, indicating a potential recovery in profitability driven by new product launches and reduced R&D expenses [2][4]. Financial Performance - In 2024, the company achieved revenue of 5.541 billion yuan, a year-on-year increase of 18.46%, with a net loss attributable to shareholders of 550 million yuan and a non-recurring net loss of 618 million yuan. For Q1 2025, revenue was 1.328 billion yuan, up 49.34% year-on-year but down 50% quarter-on-quarter, with a net loss of 120 million yuan, showing a narrowing of losses [2][4]. Business Segments - The electronic products segment generated revenue of 4.406 billion yuan in 2024, up 28.89% year-on-year, while the R&D services and solutions segment saw a decline of 14.02% to 1.060 billion yuan. The high-level intelligent driving solutions segment experienced significant growth, with revenue increasing by 431.57% to 65 million yuan [3]. New Product Development - The company completed its full coverage of vehicle electronic control products in 2024, establishing a product model that integrates distributed electronic control units, domain control products, and L4 integrated platforms. This development is expected to lead to mass production [3]. International Expansion - The company has established a factory in Malaysia, which is now operational and increasing its shipment volume. It continues to secure contracts with several international OEMs and Tier 1 suppliers, including Stellantis and Scania [3]. R&D Expenses and Profitability Outlook - R&D expenses grew by 7.3% year-on-year in 2024, but the R&D expense ratio decreased by 2 percentage points. The company anticipates that prior R&D investments will start contributing to revenue, potentially leading to a recovery in profitability [4]. Profit Forecast and Investment Rating - The company maintains revenue forecasts of 7.15 billion yuan for 2025 and 8.04 billion yuan for 2026, with expected growth rates of 29% and 13%, respectively. The net profit forecasts for 2025 and 2026 have been adjusted downwards to 2.3 million yuan and 17.4 million yuan, respectively. The company retains a "buy" rating due to the anticipated ramp-up of new electronic products [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to experience a turning point in performance as revenue is released, with a focus on cost reduction and efficiency improvement [1] - The company achieved a revenue of 5.541 billion yuan in 2024, representing a year-on-year increase of 18.46%, while the net profit attributable to the parent company was a loss of 550.32 million yuan [1] - The first quarter of 2025 saw a revenue of 1.328 billion yuan, a year-on-year increase of 49.34% [1] - New business and customer breakthroughs are anticipated, with multiple automotive electronic products set to ramp up production [1] Financial Summary - Revenue projections for 2025 and 2026 are 7.149 billion yuan and 8.044 billion yuan, respectively, with expected year-on-year growth rates of 29% and 12.51% [1] - The net profit attributable to the parent company is forecasted to be 22.84 million yuan in 2025, with significant growth expected in subsequent years [1] - The company's gross margin for 2024 is projected at 21.5%, with a gradual improvement expected in the following years [1][8] - Research and development expenses are expected to grow at a slower pace, contributing positively to profitability [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to experience a turning point in performance as revenue is released, with a projected revenue increase of 18.46% year-on-year for 2024, reaching 5.541 billion yuan [1][7] - The company has made significant breakthroughs in new businesses and clients, with electronic product revenue expected to grow by 28.89% year-on-year in 2024 [7] - The company has completed the layout of its vehicle electronic control products and is set to achieve mass production [7] Financial Summary - Total revenue for 2023 is reported at 4.678 billion yuan, with projections of 5.541 billion yuan for 2024, 7.149 billion yuan for 2025, and 9.291 billion yuan for 2027, reflecting a compound annual growth rate of 29.02% from 2024 to 2025 [1][8] - The net profit attributable to the parent company is expected to turn positive in 2025, with a forecast of 22.84 million yuan, following a loss of 550.32 million yuan in 2024 [1][8] - The company's earnings per share (EPS) is projected to improve from -4.59 yuan in 2024 to 2.21 yuan in 2027 [1][8] Business Performance - The company has seen a significant increase in revenue from its high-level intelligent driving solutions, which grew by 431.57% year-on-year [7] - The company's R&D expenses have shown a slowdown in growth, with a year-on-year increase of only 7.3% in 2024, indicating improved cost management [7] - The gross profit margin is expected to stabilize around 21.51% in 2024, with a gradual improvement anticipated in subsequent years [8]