Sinolink Securities: Maintaining a "Buy" rating for Giant Star Technology, believing that the company's performance is expected to return to a stable growth path.

The research report from CITIC Securities pointed out that Jiuxing Technology is expected to achieve a net profit attributable to shareholders of 12.5-13.7 billion yuan in the first half of 2025, a year-on-year growth of 5%-15%; of which, the net profit attributable to shareholders in the second quarter of 2025 is expected to be 7.9-9.1 billion yuan, a year-on-year growth of 1.6%-16.9%. Despite the significant impact of changes in tariff policies on the company in the second quarter of 2025, the company is expected to achieve an increase in performance by returning to a stable growth trajectory through its global production capacity layout, new product launches in the electric tool sector, and innovation in cross-border e-commerce channels. The significant fluctuations in US tariff policies in the second quarter of 2025 have greatly affected the operating pace of the company's US business, and in general, there were about 40 days of order delivery delays in the second quarter. Thanks to the company's leading global production capacity layout and independent brand positioning, and through proactive overseas shipments and price adjustments, revenue in the second quarter of 2025 remained relatively flat year-on-year; in addition, benefiting from price increases in the downstream European and American markets and the increase in sales of new products represented by electric tools, as well as the emphasis on cross-border e-commerce channels, the gross profit margin continued to improve, driving profit growth. The tariff uncertainties are gradually dissipating, and the construction of production capacity in Southeast Asia is accelerating. The current industry sentiment remains low under high inflation and high interest rate pressure, but it is expected to enter a new upward cycle in the future with the initiation of interest rate cuts and the recovery of the US real estate market. The "Buy" rating is maintained.