Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 33.66 [1][5]. Core Views - The company reported a revenue of RMB 2.746 billion for H1 2025, representing a year-on-year increase of 15.89%, and a net profit of RMB 345 million, up 15.15% year-on-year. Q2 revenue reached RMB 1.559 billion, showing a year-on-year growth of 10.20% and a quarter-on-quarter increase of 31.38% [1]. - The injection molding machine business is expected to maintain steady growth due to the recovery in industry sentiment, while the magnesium alloy forming equipment presents significant growth potential [2][4]. - The company's overseas market revenue for H1 2025 was RMB 749 million, a year-on-year increase of 27.01%, significantly outpacing domestic market growth [2]. Summary by Sections Financial Performance - For H1 2025, the company's gross margin was 31.08% and net margin was 12.90%, with Q2 gross margin at 31.42%, showing a quarter-on-quarter increase of 0.78% [3]. - The sales expense ratio decreased to 7.18% in Q2, down 1.81 percentage points year-on-year, indicating improved operational efficiency [3]. Business Segments - The revenue breakdown for H1 2025 includes injection molding machines at RMB 1.932 billion (up 13.09% YoY), die-casting machines at RMB 556 million (up 33.29% YoY), and rubber injection machines at RMB 119 million (up 23.85% YoY) [2]. - The company has been focusing on semi-solid magnesium alloy injection molding machines for 16 years, with recent advancements in technology enhancing its competitive edge [4]. Profit Forecast and Valuation - The forecast for net profit for 2025 and 2026 has been adjusted downwards by 6% and 8% to RMB 718 million and RMB 846 million, respectively, due to increased industry competition [5]. - The target price of RMB 33.66 reflects a PE ratio of 22 times for 2025, up from a previous estimate of RMB 27.74, driven by improved comparable company valuations and growth in magnesium alloy applications [5].