Investment Rating - The report maintains a "Buy" rating for the company, indicating a favorable outlook for investment over the next 6-12 months [3][11]. Core Insights - The company's revenue for the first half of 2025 was 2.598 billion RMB, a year-on-year decline of 13.2%, primarily due to pressure on ICT support business from reduced costs by telecom operators [1]. - The gross profit for the same period was 783 million RMB, reflecting a 6.1% increase year-on-year, with a gross margin of 30.1%, up by 5.4 percentage points [1]. - The net loss for the first half of 2025 was 202 million RMB, influenced by one-time severance payments due to personnel restructuring, but adjusted net loss was 48 million RMB, a reduction from 70 million RMB in the previous year [1]. Summary by Sections Revenue Breakdown - The ICT support business generated 2.118 billion RMB in H1 2025, down 14.7% year-on-year, accounting for 81.5% of total revenue [1]. - The 5G private network and application revenue was 47 million RMB, a decline of 26.3%, but orders increased by 51.7% year-on-year [1]. - The smart operation revenue was 408 million RMB, down 8.8%, with non-telecom orders growing significantly [1]. AI Model Applications - Revenue from AI model applications and delivery reached 26 million RMB, a staggering increase of 76 times year-on-year, with signed orders amounting to 70 million RMB, up 78 times [1]. - The company has established a strategic partnership with Alibaba Cloud and is involved in nearly 100 projects, enhancing its delivery efficiency through a dedicated AI engineering team [1]. Profit Forecast and Valuation - The profit forecast for 2025-2027 has been adjusted downwards due to the impact of cost reductions in the telecom sector, with expected net profits of 455 million RMB, 691 million RMB, and 759 million RMB respectively [2][8]. - The company anticipates a recovery in revenue growth driven by AI model applications and smart operations, maintaining a target of 200-300 million RMB in orders for AI applications by 2025 [1].
亚信科技（01675）：ICT支撑业务1H25承压，AI大模型应用和交付业务进入落地元年