Core Viewpoint - The report highlights the strong performance of Tonghui Electronics in the first half of 2025, with significant growth in net profit and a positive outlook for future product development and market competitiveness [1][4]. Financial Performance - In H1 2025, the company achieved a revenue of 100.58 million yuan, a year-on-year increase of 16.81% [1] - The net profit attributable to shareholders reached 29.31 million yuan, up 55.40% year-on-year [1] - The company's net profit growth outpaced revenue growth, with a net profit margin of 29.11%, an increase of 7.31 percentage points year-on-year [2] Product Development and R&D - The company maintained a high level of R&D investment, with R&D expenses amounting to 13.64 million yuan in H1 2025, a 15.18% increase year-on-year [3] - The company has a robust patent portfolio, including 68 software copyrights and 83 authorized patents, with 56 being invention patents [3] - New product launches, particularly in semiconductor testing and analysis, are expected to enhance the company's product matrix and market competitiveness [3] Investment Outlook - The company is projected to have EPS of 0.38, 0.46, and 0.56 yuan for 2025-2027, corresponding to P/E ratios of 67, 56, and 46 times [4] - The focus on electronic measurement instruments and expansion into semiconductor and renewable energy testing is expected to drive future growth [4]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The company has seen a significant increase in net profit attributable to shareholders, with a growth of 55% in H1 2025, driven by the ramp-up of new semiconductor testing equipment [5][9] - The company is expected to continue its growth trajectory, with projected net profits of 0.66 billion, 0.80 billion, and 0.97 billion RMB for 2025-2027, corresponding to EPS of 0.41, 0.50, and 0.60 RMB per share [6] - The company is focusing on expanding its overseas market presence and enhancing its product innovation strategy, particularly in the semiconductor and new energy sectors [9] Financial Performance Summary - In H1 2025, the company achieved revenue of 1.0 billion RMB (up 17% year-on-year) and a net profit of 293.1 million RMB (up 55% year-on-year) [9] - The company’s revenue for Q2 2025 was 0.61 billion RMB (up 13% year-on-year and up 57% quarter-on-quarter), with a net profit of 193.8 million RMB (up 34% year-on-year and up 95% quarter-on-quarter) [9] - The company’s gross margin for semiconductor testing equipment increased significantly, contributing to overall revenue growth [9] Earnings Forecast and Valuation - The company’s projected revenue for 2025 is 236 million RMB, with a year-on-year growth rate of 21.88% [8] - The projected net profit for 2025 is 66 million RMB, with a year-on-year growth rate of 29.90% [8] - The price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are expected to be 65.1, 53.6, and 44.1 respectively [6][8]