Pacific Securities: Maintains HORIZON CD "Buy" Rating, Overseas Expansion Drives Growth

According to the Zhitong Finance APP, Pacific Securities has released a research report maintaining a "Buy" rating for HORIZON CD (09930). The company published its mid-term report for 2025, achieving an operating income of 4.35 billion yuan, a gross profit of 94.06 million yuan, and a net profit attributable to shareholders of 35.49 million yuan. Revenue from overseas markets exceeded 597 million yuan, accounting for 13.7%, a significant year-on-year increase of 719.8%. The company's success in global expansion lays a foundation for future growth. Although the domestic market faces pressure, the company maintains market competitiveness through improved lean operations and international layout. The main points of Pacific Securities are as follows: Construction recovery is slow, overseas demand is gradually released In the first half of 2025, the global economy faces uncertainty, while the Chinese economy maintains steady progress. Despite the overall downturn in the construction industry, growth in infrastructure and manufacturing investment supports the sector. Particularly in railway, transportation, and water conservancy projects, equipment demand has rebounded. However, the real estate market remains sluggish, putting significant pressure on the construction machinery industry, exacerbating the decline in equipment rental prices. On the revenue side, the company achieved an operating income of 4.35 billion yuan in the first half of the year, mainly due to a decline in domestic equipment rental and a contraction in engineering technical service income, down 10.7% year-on-year. The weak construction industry, especially the decline in demand for aerial work platforms and new formwork systems, led to an overall revenue decline. On the profit side, the gross profit margin fell from 32% to 21.6%, with gross profit margins for engineering technical services and asset management services decreasing by 67.4% and 57.3%, respectively, mainly affected by insufficient domestic market demand and market price fluctuations. In overseas markets, particularly in Southeast Asia and the Middle East, strong growth in infrastructure and green energy projects has brought a large number of orders to HORIZON CD, with overseas demand continuously released, opening up new growth points for the company. Overseas revenue increased significantly by 719.8% year-on-year, reaching 597 million yuan, accounting for 13.7% of total revenue, alleviating domestic market pressure, demonstrating international development potential, and is expected to continue growing. Leasing services steadily increase, technical services contract significantly On the business side, in the first half of 2025, the company achieved operating revenues of 2.265 billion, 1.139 billion, and 946 million yuan from operating leasing services, engineering technical services, and platform and other services, respectively. Engineering technical services and platform and other services decreased by 41.48% and 8.21% year-on-year, mainly constrained by the contraction of domestic market business. Operating leasing services performed well, up 19.5% year-on-year, with growth in overseas markets being a key driver. Although domestic market demand has not been fully released, the company has maintained stable growth by optimizing asset structure and expanding international markets. During the reporting period, the company's selling expenses, management expenses, and financial expenses were 243 million, 521 million, and 401 million yuan, respectively, with selling expenses down 7.7% year-on-year, while management and financial expenses increased by 22.76% and 4.97% year-on-year. Lean operations create new situations, global layout wins the future In response to domestic market pressures, the company accelerates its transformation from an investment-driven model to a lean operation model, optimizing asset allocation and improving regional layout efficiency to reduce operating costs and enhance resource utilization efficiency. In terms of global layout, the company implements the "Three + Three + Three" strategy to further expand markets in Southeast Asia and the Middle East, strengthening its international layout As of the end of H1 2025, the company manages 202,600 aerial work platforms, 638,300 tons of new formwork systems, and 1,371,100 tons of new support systems, with 63 overseas outlets. With the rapid growth of overseas business, it is expected to become an important source of the company's revenue and profit. Risk Warning: Industry recovery is less than expected, overseas market volatility risk