Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected stock price increase of over 15% relative to the benchmark index [4][6]. Core Insights - The company achieved a record high in quarterly performance for Q3 2025, with revenue reaching 15.42 billion yuan, a year-on-year increase of 36.70%, and a net profit of 3.56 billion yuan, up 37.33% year-on-year [1][2]. - The company has established a new pattern focusing on infrared business while gradually breaking into multi-dimensional sensing fields such as microwave and laser, supporting sustainable rapid growth [3][4]. - The company’s revenue and net profit for the first three quarters of 2025 were 40.86 billion yuan and 7.07 billion yuan, respectively, representing year-on-year growth of 29.72% and 46.21% [1][4]. Financial Performance Summary - For the first three quarters of 2025, the gross profit margin increased by 0.85 percentage points to 51.97%, while the net profit margin rose by 2.90 percentage points to 15.15% [1][2]. - The operating cash flow significantly improved, reaching 7.67 billion yuan compared to 1.82 billion yuan in the same period last year, primarily due to increased cash receipts from sales [2]. - The company’s revenue is projected to grow at a compound annual growth rate (CAGR) of 49.66% from 2018 to 2024, with net profit CAGR at 28.71% [3][4]. Future Earnings Forecast - The company is expected to achieve net profits of 8.08 billion yuan, 10.00 billion yuan, and 12.35 billion yuan for the years 2025, 2026, and 2027, respectively [4][5]. - The projected price-to-earnings (PE) ratios for 2025, 2026, and 2027 are 46x, 37x, and 30x, respectively [4][5].

Investment Rating - The report maintains a "Recommended" rating for the company, considering its strong performance and growth potential in the infrared and microwave sectors [4][6]. Core Insights - The company reported a significant increase in net profit of 114% year-on-year for Q2 2025, with total revenue reaching 25.4 billion yuan for the first half of 2025, a 25.8% increase compared to the previous year [1][2]. - The infrared imaging and optoelectronic business segments are experiencing rapid growth, contributing to the overall revenue increase [2][4]. - The company has established a new business structure focusing on infrared, microwave, and laser technologies, which are expected to enhance productivity across various industries [4]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 14.1 billion yuan, marking a 38.7% increase year-on-year, with a net profit of 2.1 billion yuan, up 114.3% [1]. - The gross margin for the first half of 2025 improved to 50.7%, while the net margin increased to 11.4% [1][3]. Business Segments - The infrared thermal imaging segment generated 24.0 billion yuan in revenue, a 36.6% increase, accounting for 94% of total revenue [2]. - The microwave radio frequency segment saw a decline in revenue to 0.7 billion yuan, down 65.9% [2]. Cost Management - The company reduced its expense ratio by 1.8 percentage points to 32.2% in the first half of 2025, with decreases in sales and management expense ratios [3]. - Operating cash flow improved significantly, reaching 3.2 billion yuan compared to 0.7 billion yuan in the same period last year [3]. Future Projections - The company is projected to achieve net profits of 7.33 billion yuan, 8.97 billion yuan, and 10.92 billion yuan for the years 2025, 2026, and 2027, respectively [4][5]. - The current stock price corresponds to a price-to-earnings ratio of 49x for 2025, 40x for 2026, and 33x for 2027 [4][5].