Dongwu Securities: Feilong Stock's main business profit-making ability has significantly improved, maintaining a "buy" rating.

The research report of Dongwu Securities pointed out that Feilong Co., Ltd.'s performance in 25H1 met expectations, with a significant increase in profitability in its main business, and growth achieved in the new energy thermal management & non-automotive business. The company has made a deep layout in the Southeast Asian market, setting up subsidiaries in Thailand and Singapore. Among them, the Thai production base, Longtai Co., Ltd., is scheduled to start production in June 2025. After full production, it is expected to have a designed capacity of producing 1.5 million turbochargers, 1 million exhaust manifolds, 500,000 mechanical water pumps, and 1 million electronic water pumps annually. Adapting to industry trends, the company is constructing four major growth curve matrices: 1) upgrading to a provider of thermal management integrated modules and system solutions focusing on electronic pumps and intelligent temperature control valves; 2) actively expanding into the global market by relying on the production base in Thailand; 3) extending the application scenarios of thermal management technology from automobiles to server liquid cooling, data center liquid cooling, artificial intelligence, charging station liquid cooling, 5G base stations and communication equipment, with this curve now entering the stage of gradually mass production and delivery; 4) seizing the trend of industrial integration by empowering the robotics industry with thermal management technology and accelerating the layout in the field of humanoid robots based on existing customer resources and business synergy. Maintaining a "buy" rating.