Investment Rating - The report upgrades the investment rating to "Outperform" [1] Core Insights - The company has shown signs of a profit turning point, with significant improvements in revenue and cost control strategies leading to better profitability [8] - The revenue for H1 2025 reached 2.908 billion yuan, representing a year-on-year growth of 43.5%, while the net profit loss narrowed significantly to 87 million yuan [8] - The increase in revenue is attributed to breakthroughs in major products, particularly in automotive electronics, with electronic product revenue growing by 51.5% [8] - Cost control measures have effectively improved the gross margin, which stood at 23.15% for H1 2025, showing a notable improvement [8] - The report anticipates continued improvement in gross margin and expense ratios due to technological advancements and expanding customer base [8] Financial Data and Profit Forecast - Total revenue projections for 2025 are estimated at 7.422 billion yuan, with a year-on-year growth rate of 33.9% [7] - The company is expected to achieve a net profit of 34 million yuan in 2025, with significant growth projected in subsequent years [7] - The gross margin is forecasted to improve gradually, reaching 24.4% by 2027 [7] - The report revises revenue forecasts for 2025-2027 upwards, reflecting a positive outlook on the company's performance [8]
经纬恒润（688326）：盈利拐点已现，厚积薄发正当时