Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company is expected to see improved profitability due to ongoing upgrades in optical specifications and accelerated shipments in the automotive sector [2][3] - The mobile camera module shipments have shown a positive year-on-year growth for the first time in 2025, while lens shipments are expected to recover in the second half of the year [1][2] - The automotive lens shipments have significantly increased, with a projected growth rate of 26% in global shipments by 2025, benefiting the company as a leading player in this market [3] Summary by Sections Mobile Camera Modules - In June, mobile camera module shipments increased by 11.1% month-on-month and 0.7% year-on-year, marking the first positive year-on-year growth in 2025 [1] - The first half of 2025 saw a year-on-year decline of 21.0% in mobile camera module shipments, attributed to a focus on mid-to-high-end projects and a high base from the previous year [1] - The report anticipates a recovery in shipments during the second half of 2025 due to the traditional peak season for Android devices [1] Mobile Lenses - Mobile lens shipments in June decreased by 3.1% month-on-month and 12.7% year-on-year, primarily due to a focus on mid-to-high-end projects [1] - For the first half of 2025, mobile lens shipments declined by 6.4% year-on-year, which is below the annual growth guidance of 5% [1] - A recovery in mobile lens shipments is expected in the second half of 2025 due to increased demand from major clients [1] Automotive Lenses - June saw a 3.2% month-on-month increase and a 44.6% year-on-year increase in automotive lens shipments [3] - The first half of 2025 recorded a 21.7% year-on-year increase in automotive lens shipments, exceeding the annual growth guidance of 15%-20% [3] - The company is projected to benefit significantly from the anticipated growth in the automotive lens market, with an expected shipment growth rate of nearly 25% in 2025 [3] Financial Forecasts - The report has revised the net profit forecasts for 2025 and 2026 upwards by 9% and 6% respectively, now estimating net profits of 3.83 billion and 4.84 billion RMB [4] - The company is expected to achieve a gross margin of nearly 10% for mobile camera modules and nearly 30% for mobile lenses in 2025 [2] - Revenue projections for the company show a steady increase from 31.68 billion RMB in 2023 to 62.07 billion RMB in 2027, with a compound annual growth rate of approximately 17.9% [4]