Core Viewpoint - The report from Tianfeng Securities indicates that Feiling Kesi's net profit attributable to shareholders for the first half of 2025 (25H1) was 21.88 million yuan, a year-on-year decline of 71.32% [1]. Financial Performance - In Q2 2025, the net profit attributable to shareholders was 11.17 million yuan, reflecting a year-on-year decrease of 73.49% [1]. - The overall gross margin for the first half of 2025 was 13.47%, down 4.16 percentage points from the same period last year [1]. - The gross margin for Q2 2025 was 13.85%, showing a quarter-on-quarter improvement but a year-on-year decline of 4.89 percentage points [1]. Investment and Future Outlook - The company has increased its investment in research and development, including servers and related businesses, which is expected to enhance profitability once these initiatives yield results [1]. - With the continuous evolution of AI, there is a sustained increase in demand for ICT-related products, positioning the company to capitalize on market opportunities in infrastructure hardware [1]. - The company is focusing on a diversified product layout, including CT, IT, high-end PCBA, and automotive electronics, which may benefit from industry growth driven by AI [1]. Profit Forecast - The net profit attributable to shareholders for 2025 and 2026 has been adjusted to 70 million yuan and 120 million yuan, respectively, down from previous estimates of 220 million yuan and 290 million yuan [1]. - The forecast for net profit attributable to shareholders in 2027 is set at 180 million yuan, with corresponding PE valuations for 2025-2027 at 107, 64, and 43 times, respectively [1]. - The rating for the company remains "Accumulate" [1].