Investment Rating - The investment rating for the company is "Buy-A" with a target price of 49.24 CNY per share [5][10]. Core Insights - The company reported a revenue of 2.01 billion CNY for H1 2025, representing a year-on-year increase of 23.37%, and a net profit of 30 million CNY, up 150.45% year-on-year [1]. - In Q2 2025, the company achieved a revenue of 1.07 billion CNY, a year-on-year increase of 17.93%, but the net profit decreased by 87.98% to 6 million CNY [1]. - The growth was driven by the expansion of overseas major clients and the rapid growth of existing core clients, with 13 clients generating sales exceeding 50 million CNY, including 4 clients exceeding 100 million CNY [2]. - The company's gross margin for H1 2025 was 15.61%, with Q2 2025 gross margin at 16.87%, an increase of 2.68 percentage points quarter-on-quarter [2]. - R&D investment reached 142 million CNY, accounting for 7.07% of revenue, reflecting a year-on-year increase of 51.28% [3]. Financial Projections - Revenue projections for 2025, 2026, and 2027 are 4.58 billion CNY, 5.75 billion CNY, and 6.84 billion CNY respectively, with net profits of 190 million CNY, 359 million CNY, and 486 million CNY [4][12]. - The company is expected to maintain a positive growth trajectory with a projected net profit margin increasing from 4.1% in 2025 to 7.1% in 2027 [12]. Market Performance - The company's stock price on August 25, 2025, was 40.79 CNY, with a market capitalization of approximately 16.71 billion CNY [5]. - The stock has shown significant relative and absolute returns over the past 12 months, with relative returns of 108% and absolute returns of 142.4% [7]. Valuation Methodology - The company is valued using a price-to-sales (PS) ratio of 4.4 times for 2025, leading to the target price of 49.24 CNY per share [10]. - The valuation reflects the company's advantages in the mid-to-high-end advanced packaging and testing business sectors [10].