Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company achieved a revenue of 5.49 billion yuan in Q2 2025, a year-on-year decrease of 4.1%, while the net profit attributable to shareholders was 50 million yuan, an increase of 45.1% year-on-year. The company is expected to benefit from a rich order backlog and improved profitability in its passenger car seat projects [2][4][9]. - The integration efforts overseas are showing results, with expectations of significant profit elasticity as overseas profitability improves [2][9]. Summary by Sections Financial Performance - In Q2 2025, the company reported a revenue of 5.49 billion yuan, down 4.1% year-on-year but up 8.9% quarter-on-quarter. The decline was primarily due to the sale of TMD. The gross margin was 14.4%, remaining stable year-on-year but down 1.9 percentage points quarter-on-quarter. The net profit attributable to shareholders was 50 million yuan, reflecting a year-on-year increase of 45.1% [2][9]. - The company’s R&D expenses increased due to a rise in new orders, with a total of 175 new R&D personnel added by June 30, 2025 [9]. Business Development - The passenger car seat business saw a revenue of 1.98 billion yuan in H1 2025, a year-on-year increase of 121.2%. The company has 24 ongoing projects for passenger car seats as of July 31, 2025, indicating strong future growth potential [9]. - The company is also expanding into air conditioning vents and vehicle refrigerators, which have received multiple orders, further enhancing long-term growth prospects [9]. Market Outlook - The global automotive market is experiencing high demand, with significant year-on-year increases in production and sales across major markets, including China, the U.S., and Europe [9]. - The company expects net profits attributable to shareholders to reach 550 million yuan, 990 million yuan, and 1.34 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 26.9X, 15.1X, and 11.2X [9].