Investment Rating - The report maintains an "Outperform" rating for the company, projecting a target price of RMB 49.92, which represents a 25% upside from the current price [4][11]. Core Insights - The company has demonstrated strong growth across all business lines, with significant contributions from its AI strategy and software business, which has shown a revenue increase of 30.1% year-on-year [12][13]. - The repair smart terminals segment is stable, with a notable boom in the TPMS business, which grew by 56.8% year-on-year due to a global replacement cycle [14]. - The energy smart hub (charging poles) has entered a harvest period, with revenue growth of 40.5% year-on-year, supported by a strong order book from major clients [15]. - The AI inspection robots are positioned for launch, indicating vast market potential across various sectors [16]. Financial Summary - The company’s total revenue is projected to grow from RMB 3,251 million in 2023 to RMB 8,465 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 23.1% [3]. - Net profit attributable to shareholders is expected to increase significantly from RMB 179 million in 2023 to RMB 1,623 million in 2027, with a CAGR of around 26.9% [3]. - The earnings per share (EPS) is forecasted to rise from RMB 0.27 in 2023 to RMB 2.42 in 2027, indicating strong profitability growth [3]. Business Segments - The AI and software business has become a key growth driver, achieving a gross profit margin (GPM) exceeding 99% [13]. - The charging business has shown robust performance, with a successful order from LAZ Parking, North America's largest commercial parking operator, contributing to a solid foundation for long-term growth [15]. - The company’s AI inspection business is expected to expand rapidly, with applications in various fields such as power grids and transportation [16].

Group 1: 华工科技 - 华工科技 achieved a revenue of 7.629 billion yuan in the first half of 2025, representing a 45% year-on-year growth, with a net profit attributable to the parent company of 911 million yuan, also up 45% [1] - The company focuses on core technologies such as laser and intelligent manufacturing, information communication, intelligent vehicle networking, perception technology, and industrial software, with R&D investment of 461 million yuan, a 19% increase [1] - Global operations are being enhanced, with a continuous reduction in sales and management expense ratios; the perception business generated 2.154 billion yuan in revenue, a 17% increase, primarily targeting the new energy vehicle supply chain [1] - The optical connectivity business saw revenue of 3.744 billion yuan, a significant 124% increase, with large-scale delivery of 400G and 800G optical modules [1] - The laser and intelligent manufacturing business reported revenue of 1.676 billion yuan, with notable profit growth in high-power laser equipment [1] Group 2: 道通科技 - 道通科技 is developing an end-to-end payment solution in the AI + charging business, supporting multiple payment methods and exploring stablecoin payments and RW financing [2] - The AI and software business operates on a subscription model, providing various value-added services to enhance software revenue and renewal rates [2] - The growth in the TPMS business is driven by policy benefits and market demand, with significant global aftermarket replacement needs [2] - The AI + inspection business has been implemented in oilfield inspections, achieving a fully autonomous process closure and cluster collaborative response [2] Group 3: 机构简介 - 上海理成资产 is one of the earliest established private management companies in China, adhering to a growth stock investment philosophy focused on safety margins for thirteen years [3] - The company has a complete and unique investment management knowledge system, with 50 employees, nearly 30 of whom are professional research and investment personnel [3] - The management scale has exceeded 10 billion yuan, focusing on secondary stock long strategies and PIPE strategies in the fields of pharmaceuticals, advanced manufacturing, and consumer goods [3] - 理成 has consistently ranked high in long-term performance and has won four private equity golden bull awards over three sessions [3]

Group 1: Daotong Technology - Daotong Technology is developing an end-to-end payment solution in the AI + charging business, supporting multiple payment methods and exploring stablecoin payments and RW financing [1] - The AI and software business operates on a subscription model, providing various value-added services to enhance software revenue and renewal rates [1] - The growth of the TPMS business is driven by policy benefits and market demand, with significant global aftermarket replacement demand [1] - The AI + inspection business has been implemented in oilfield inspections, achieving a fully autonomous process closure and cluster collaborative response [1] Group 2: Kaili New Materials - In Q2, Kaili New Materials experienced significant profit growth, but revenue declined due to changes in business structure [2] - In the first half of the year, the revenue breakdown showed that the fine chemicals sector accounted for 70.48%, basic chemicals for 25.35%, and environmental new energy for 2.90% [2] - Sales of mercury-free PVC catalysts reached 258 tons, with 366 tons in hand orders, and sales of mercury-free PVC catalysts increased by 113.22% [2] - The high-performance platinum-based dehydrogenation catalyst is in batch trial production, while the hydrogenated nitrile rubber project is in the debugging phase, with applications in oilfields and the automotive industry [2] - The pharmaceutical segment saw a sales increase of 49.26%, with expectations for continued growth in the global pharmaceutical market and R&D service demand [2] - The company plans to optimize resources by deregistering Kaili Platinum, which has not commenced operations [2] - The fair value change loss is primarily due to the initiation of gold leasing business [2]

Group 1: Company Insights - High Yi Asset recently conducted research on two listed companies, Yishitong and Daotong Technology, focusing on their respective projects and business models [1][2] - Yishitong has developed key technologies for solid oxide fuel cells (SOFC) since 2020, with plans to complete its first demonstration project by the end of 2025 and reduce the cost of equipment to below 30,000 yuan per kW by 2026 [1] - The company aims to achieve GW-level production scale within five years and has established a complete industrial chain without patent barriers or bottlenecks [1] - Daotong Technology is advancing in the AI + charging business, offering an end-to-end payment solution and exploring stablecoin payments and RW financing [2] - The AI and software business operates on a subscription model, enhancing software revenue and renewal rates, while the TPMS business benefits from policy incentives and market demand [2] Group 2: Industry Context - SOFC technology is noted for its wide fuel adaptability and high energy conversion efficiency, making it suitable for applications such as data centers, although it currently lacks the capacity to handle commercial orders [1] - The global aftermarket replacement demand is driving growth in Daotong Technology's TPMS business, indicating a robust market opportunity [2]