Core Viewpoint - The company is entering a capacity harvesting phase, with improving operational efficiency and profitability on an upward trajectory [1] Group 1: Capacity and Financial Performance - The company is in a capacity harvesting phase, with asset turnover improving and expected to recover to 1.5 in 2024 [1] - Capital expenditure peaked and is now declining, with a capital expenditure of 900 million yuan in the first half of 2025, down 17.5% year-on-year [1] - Operating cash flow reached 2.24 billion yuan, supporting an increase in future dividend rates [1] Group 2: Battery Box Business - The company is one of the largest battery box suppliers globally, benefiting from accelerated growth in Europe’s new energy sector [2] - In 2024, the penetration rate of new energy vehicles in Europe is expected to be approximately 19.6%, with a significant increase in sales of new energy light vehicles [2] - The company has actively laid out its battery box business since 2017, achieving a revenue of 3.58 billion yuan in the first half of 2025, a year-on-year increase of 49.8%, with a gross margin of 23.0% [2] Group 3: New Business Ventures - The company is strategically diversifying into new business areas, including robotics, liquid cooling, and low-altitude economy [3] - The robotics sector is expected to see significant advancements by 2025, with the company leveraging its automotive parts technology [3] - The liquid cooling market is growing due to increased power consumption in data centers, and the company is expanding its production capabilities in this area [3] Group 4: Investment Outlook - The automotive business is accelerating growth, driven by the battery box business and the rapid development of new energy in Europe [4] - The company is expected to see a continuous rise in its valuation, with projected net profits of 2.81 billion, 3.31 billion, and 4.06 billion yuan for 2025-2027, corresponding to PE ratios of 12.9X, 11.0X, and 8.9X [4] - The company maintains a positive outlook for future growth, anticipating a "Davis Double" effect as it enters a capacity harvesting phase [4]