Core Viewpoint - The report highlights the robust growth of Jikang Technology in the energy, water conservancy, and transportation sectors, with a 28% year-on-year increase in net profit attributable to the parent company for the first half of 2025, leading to a "Buy" rating for the stock [1] Financial Performance - In H1 2025, the company reported revenue of 168 million yuan, a year-on-year increase of 13.49%, and a net profit attributable to the parent company of 32 million yuan, up 14.33% [1] - The net profit excluding non-recurring items for H1 2025 was 32 million yuan, reflecting a year-on-year growth of 27.81% [1] - Q2 2025 revenue was 90 million yuan, with a quarter-on-quarter increase of 9.02% and a year-on-year increase of 14.33% [1] Business Segments - The core business segments include smart monitoring terminals and IoT solutions, with revenues growing by 11% and 22% respectively in H1 2025 [2] - Smart monitoring terminals generated 132 million yuan in revenue, with a gross margin of 61.41% [2] - IoT solutions and services achieved revenue of 36 million yuan, with a gross margin of 28.71% [2] Research and Development - The company possesses strong technical capabilities, including proprietary technologies in sensing and IoT integration, which support high-quality domestic product replacements [3] - The company has expanded its service areas and customer base, focusing on energy, water conservancy, transportation, and disaster prevention sectors [3] - The customer base primarily consists of state-owned enterprises and government departments, ensuring long-term cooperation and large orders [3] Profit Forecast and Investment Rating - The company aims to continue expanding in the energy, water conservancy, and transportation sectors, with projected net profits of 91 million, 105 million, and 117 million yuan for 2025-2027 [3] - The current stock price corresponds to dynamic P/E ratios of 24.65, 21.36, and 19.08 for the respective years [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company continues to deepen its presence in the energy, water conservancy, transportation, and natural resources sectors, achieving a year-on-year growth of 28% in net profit attributable to the parent company for the first half of 2025 [2] - The company's revenue for the first half of 2025 reached 168 million yuan, representing a year-on-year increase of 13.49%, while the net profit attributable to the parent company was 32 million yuan, up 14.33% year-on-year [2] - The growth in performance is primarily driven by the acceleration of energy infrastructure investment, digital transformation in transportation, and increased demand for disaster prevention [2][3] - The company reported a gross profit margin of 54.38%, a decrease of 0.47 percentage points year-on-year, and a net profit margin of 19.35%, down 0.26 percentage points year-on-year [2] Revenue and Profitability - The company's main business segments include smart monitoring terminals and IoT solutions, with revenues growing by 11% and 22% year-on-year, respectively, in the first half of 2025 [3] - The smart monitoring terminal segment generated 132 million yuan in revenue, with a gross margin of 61.41% [3] - The safety monitoring IoT solutions and services segment achieved 36 million yuan in revenue, with a gross margin of 28.71% [3] Research and Development - The company has strong R&D capabilities, with proprietary technologies in various sensing techniques and IoT integration, enabling high-quality domestic product replacements [4] - The company is expanding its service areas and customer base, focusing on energy, water conservancy, transportation, and smart city applications [4] - The customer base primarily consists of state-owned enterprises and government departments, ensuring long-term cooperation and large orders [4] Financial Forecasts - The company forecasts total revenue of 398.45 million yuan for 2025, with a net profit of 90.76 million yuan, reflecting a year-on-year growth of 17.84% [1][10] - The projected earnings per share (EPS) for 2025 is 0.65 yuan, with a price-to-earnings (P/E) ratio of 24.65 based on the current price [1][10]