Investment Rating - The investment rating for the company is "Accumulate" with a target price of 87.15 CNY [6]. Core Views - The company demonstrated robust operational capabilities, achieving double-digit growth in both revenue and profit despite intensified industry competition and diminishing effects of national subsidies [3]. - The company reported a revenue of 252.33 billion CNY for the first half of 2025, representing a year-on-year increase of 15.68%, and a net profit attributable to shareholders of 26.01 billion CNY, up 25.04% year-on-year [12]. - The report maintains profit forecasts for 2025-2027, with expected EPS of 5.70, 6.30, and 6.82 CNY respectively, reflecting year-on-year growth of 14%, 11%, and 8% [12]. Financial Summary - Total revenue for 2023 is projected at 373.71 billion CNY, with a growth rate of 8.1%, and net profit attributable to shareholders is expected to be 33.72 billion CNY, growing by 14.1% [5]. - The company’s gross profit margin for Q2 2025 was 26.17%, a slight decrease of 0.4 percentage points year-on-year, while the net profit margin improved by 0.38 percentage points to 11.22% [12]. - The company’s net asset return rate is projected to be 20.7% for 2023, decreasing to 17.8% in 2024, and then gradually increasing to 20.1% by 2027 [5]. Business Performance - In the first half of 2025, the company’s C-end business in smart home products grew by 13% year-on-year, with significant market share recovery in domestic air conditioning, refrigeration, and washing machine sectors [12]. - The B-end business also showed a strong performance with a 21% year-on-year increase, particularly in industrial technology, building intelligence, and robotics sectors [12]. - The company’s sales, management, R&D, and financial expense ratios for Q2 2025 were 9.02%, 3%, 3.57%, and -2.54% respectively, indicating improved efficiency [12].