Investment Rating - The report maintains an "Add-A" rating for the company, indicating a positive outlook for the stock [2][6]. Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 790 million yuan, up 21.9% year-on-year, and net profit at 110 million yuan, up 20.7% year-on-year [3]. - The company's main products, including micro drive systems and precision parts, have shown growth in revenue and improved profitability, with the micro drive systems contributing 63.3% to total revenue [3][4]. - The company is advancing its research and development in robotic dexterous hands and core components, launching new products and enhancing production capabilities [4][5]. Financial Performance - For Q2 2025, the company achieved a revenue of 420 million yuan, a year-on-year increase of 25.9%, and a net profit of 60 million yuan, up 52.3% year-on-year [3]. - The gross margin for Q2 2025 was 32.2%, an increase of 2.5 percentage points year-on-year, while the net margin was 14%, up 2.4 percentage points year-on-year [4]. - The company expects earnings per share (EPS) to grow from 1.12 yuan in 2025 to 1.81 yuan in 2027, with corresponding price-to-earnings (P/E) ratios decreasing from 108.8 to 67.3 over the same period [6][9]. Market Position and Strategy - The company is recognized as a global leader in micro drive and drive system solutions, benefiting from trends in miniaturization, automation, and intelligence across various sectors including smart vehicles and robotics [6]. - The company has initiated overseas production capacity in Thailand and is in the process of listing on the Hong Kong Stock Exchange, indicating a strategic expansion into international markets [5][6].