Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the benchmark index within the next six months [9][15]. Core Insights - In H1 2025, the company achieved a significant revenue increase of 68% year-on-year, reaching 1.934 billion yuan, and a remarkable net profit growth of 907%, amounting to 181 million yuan [4][5]. - The company has successfully resumed the delivery of delayed model project products and expanded its market presence in civilian products, particularly in infrared chip applications [5]. - The gross margin remained relatively stable, with a slight decrease of 0.38 percentage points to 51.02%, while the expense ratio decreased by 17.85 percentage points to 27.60% [6]. - The company has made significant strides in the complete equipment system sector, achieving a leap from following to leading in the market, with substantial contracts signed for both domestic and international sales [7][9]. - Future revenue projections for 2025-2027 are estimated at 5.1 billion, 6.1 billion, and 7.7 billion yuan, with corresponding net profits of 668 million, 854 million, and 1.245 billion yuan, leading to price-to-earnings ratios of 76, 60, and 41 times respectively [9][11]. Summary by Sections Company Overview - The latest closing price is 11.93 yuan, with a total market capitalization of 50.9 billion yuan and a total share capital of 4.271 billion shares [3]. Financial Performance - In H1 2025, the company reported a revenue of 1.934 billion yuan and a net profit of 181 million yuan, with significant growth in both categories [4][5]. - The gross margin for H1 2025 was 51.02%, with a notable increase in the gross margin for traditional and informationized ammunition products [6]. Market Position - The company has established itself as a leading supplier in the international market for complete equipment systems, breaking the long-standing monopoly of traditional Western giants [7][9]. - The company has signed multiple significant contracts, indicating a robust pipeline for future revenue growth [7]. Future Outlook - The company is expected to experience a resonant development in both domestic and international markets for complete equipment systems, driven by technological advancements and enhanced product performance [9].

Group 1 - The company signed a product procurement agreement with a client amounting to approximately 879 million yuan, which will be part of a larger order contract to be signed later [1] - This agreement represents 32.84% of the company's audited revenue for the fiscal year 2024, indicating a positive impact on the company's operating performance for the year [1] - The company expects a significant increase in net profit for the first half of the year, projecting between 150 million to 190 million yuan, which is an increase of 734.73% to 957.33% compared to the same period last year [1] Group 2 - The company has expanded its qualifications for multiple categories of complete equipment systems and has successfully bid on several new projects, marking a leap in its capabilities in this field [2] - The signing of this agreement signifies the company's advanced position in the complete equipment system sector, positively affecting its ability to undertake mass production tasks for various domestic projects in the future [2] - The company is actively promoting large-scale procurement tasks for related model products following the resolution of previous delays in procurement plans [3] Group 3 - The company has completed the foreign acceptance and delivery of a contract for complete equipment system products with a trading company, contributing to the positive performance forecast for the first half of the year [2] - The company is preparing for subsequent bulk contract orders by ensuring timely delivery of current orders as per the agreement [3]