According to the Guoyuan Securities Research Report, Wolong Electric Drive's performance is under pressure in the short term, and the business is improving over the long term. 2026H1 earned net profit of 352 million yuan, or -34.55% year-on-year; mainly, prices of bulk raw materials such as copper, aluminum, and rare earths remained high, and the gross margin of the product was squeezed. During the reporting period, production conversion work at the Mexican base was carried out steadily according to the nodes, and many overseas production lines have fully entered the commissioning stage, laying a solid foundation for the global production capacity layout. The share of overall overseas revenue rose steadily during the reporting period, reaching 41.10%. Among them, the performance of the American regional headquarters was particularly outstanding, accounting for 16.49% of total revenue, and became an important engine driving overseas growth. The company has laid out cutting-edge tracks and has significant growth potential. On the data center application circuit, the company has various products such as gas turbine generators, EC fans, PM permanent magnet motors, and EMR permanent magnet-assisted synchronous magnetoresistive all-in-one machines to enter data center terminal application scenarios through downstream equipment and equipment integrator customers. On the intelligent circuit, the company's robot component and system application business revenue reached 325 million yuan, accounting for 4.35% of revenue, or +49.18% over the same period last year. Maintain an “Accumulation” rating.

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