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]

Core Viewpoint - Tonghui Electronics is actively developing new products and expanding its market presence, particularly in the semiconductor and new energy sectors, while reporting significant revenue growth in the first quarter of 2025 [1][5]. Group 1: New Product Development - The company is currently developing several new products, including: - TH500 series high voltage pulse current voltage analysis system, with a maximum voltage of 1500V, aimed at high voltage GaN and SiC wide bandgap device research [2]. - TH520/TH521 series power semiconductor parameter analyzers for high-performance analysis of various power semiconductor devices [2]. - TH530 series avalanche energy testers with a maximum avalanche voltage of 2500V, applicable to MOSFETs, IGBTs, diodes, and transistors [2]. - TH550 series KGD testing systems supporting up to 3500V/200A static and 1200V/800A dynamic testing, used for automotive-grade SiC chip testing [3]. - TH6XX series modular wiring harness testing systems capable of testing over 1024 points, suitable for large-scale testing in new energy vehicles and military equipment [3]. Group 2: Sales Structure and Market Strategy - The sales revenue structure indicates that approximately 70% of the business is directed towards the industrial manufacturing sector, while around 30% is focused on universities and research institutions [4]. - The company plans to invest €100,000 to establish a wholly-owned subsidiary in Munich, Germany, to enhance its market share in Europe and improve local service capabilities [4]. Group 3: Financial Performance and Market Outlook - In the first quarter of 2025, the company reported a revenue of 39.09 million yuan, representing a year-on-year growth of 23.84%, and a net profit of 9.92 million yuan, with a significant increase of 125.39% [5]. - The company anticipates structural growth in testing demand in the consumer electronics and new energy sectors in 2025, driven by the implementation of new policies and the recovery of industrial product demand [5].