HORIZON CD (09930) has been maintained at a "buy" rating following the release of its 2025 interim report. The company achieved operating revenue of 4.35 billion yuan, gross profit of 94.06 million yuan, and net profit attributable to shareholders of 35.49 million yuan during the period. Overseas market revenue exceeded 597 million yuan, accounting for 13.7% of total revenue and representing a substantial year-on-year increase of 719.8%. The company's successful global expansion has laid a solid foundation for future growth. While the domestic market faces pressure, the company maintains market competitiveness through enhanced lean operations and international expansion.
Construction Sector Recovery Remains Slow, Overseas Demand Gradually Released
In the first half of 2025, the global economy faced uncertainties while China's economy maintained steady progress. Despite overall weakness in the construction industry, growth in infrastructure investment and manufacturing investment provided sector support. Equipment demand showed recovery particularly in railway, transportation, and water conservancy projects. However, the real estate market remained sluggish, placing significant pressure on the construction machinery industry with accelerated declines in equipment rental prices.
On the revenue side, the company's first-half revenue of 4.35 billion yuan declined 10.7% year-on-year, primarily due to falling domestic equipment rental rates and contracting engineering technology service income. The construction industry's weakness, particularly decreased demand for aerial work platforms and new formwork systems, led to overall revenue decline.
On the profit side, gross margin fell from 32% to 21.6%, with engineering technology services and asset management services experiencing gross margin declines of 67.4% and 57.3% respectively, mainly affected by insufficient domestic market demand and negative impacts from market price volatility.
In overseas markets, particularly Southeast Asia and the Middle East, strong growth in infrastructure and green energy projects brought substantial orders to HORIZON CD. Continued overseas demand release opened new growth opportunities for the company, with overseas revenue surging 719.8% year-on-year to 597 million yuan, representing 13.7% of total revenue. This growth relieved domestic market pressure, demonstrated international development potential, and is expected to continue growing.
Rental Services Grow Steadily, Technology Services Contract
By business segment, in the first half of 2025, the company's operating lease services, engineering technology services, and platform and other services generated revenues of 2.265 billion, 1.139 billion, and 946 million yuan respectively. Engineering technology services and platform and other services declined 41.48% and 8.21% year-on-year respectively, mainly constrained by domestic market business contraction.
Operating lease services performed strongly with 19.5% year-on-year growth, driven primarily by overseas market expansion. Despite insufficient domestic market demand release, the company maintained stable growth through optimized asset structure and international market expansion.
During the reporting period, the company's selling expenses, administrative expenses, and financial expenses were 243 million, 521 million, and 401 million yuan respectively. Selling expenses decreased 7.7% year-on-year, while administrative and financial expenses increased 22.76% and 4.97% respectively.
Lean Operations Drive New Direction, Global Layout Wins the Future
Facing domestic market pressure, the company accelerated its transformation from investment-driven to lean operation models, optimizing asset allocation and improving regional layout efficiency to reduce operating costs and enhance resource utilization efficiency.
Regarding global expansion, the company implemented a "3+3+3" strategy, further expanding into Southeast Asian and Middle Eastern markets while strengthening international positioning. As of the end of H1 2025, the company managed 202,600 aerial work platforms, 638,300 tons of new formwork systems, and 1.3711 million tons of new support systems, with 63 overseas network points deployed.
With rapid overseas business growth, these operations are expected to become important sources of company revenue and profits.
Risk Warning: Industry recovery may fall short of expectations, overseas market volatility risks.
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