Core Viewpoint - The report highlights significant revenue growth for the company in the first half of 2025, driven by increased demand in various sectors, particularly in transportation and safety monitoring solutions [1][2][3]. Financial Performance - In H1 2025, the company achieved revenue of 168 million yuan, a year-on-year increase of 13%, and a net profit attributable to shareholders of 32.34 million yuan, up 14% year-on-year [1]. - In Q2 2025, revenue was 90 million yuan, reflecting a 9% year-on-year growth, while net profit attributable to shareholders decreased by 14% to 12.78 million yuan [1]. - The management expense ratio improved to 8.72%, down 3.64 percentage points year-on-year [1]. Business Segments - The company's sales of smart monitoring terminals and safety monitoring IoT solutions grew by 11% and 22% respectively in H1 2025 [2]. - The company participated in major national projects, including water conservancy, nuclear power, and transportation infrastructure, contributing to substantial growth in contract amounts and revenue in the transportation sector [2][3]. Market Demand and Strategic Initiatives - There is a continuous increase in demand across downstream sectors such as hydropower, nuclear power, and transportation [3]. - The establishment of a new office in Linzhi, Tibet, positions the company to capitalize on significant engineering opportunities related to national hydropower projects [3]. - The company has secured three invention patents and one software copyright in H1 2025, indicating a commitment to innovation [3]. Profit Forecast and Shareholder Returns - The company forecasts net profits attributable to shareholders of 92 million yuan, 111 million yuan, and 130 million yuan for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings ratios of 53.0, 43.7, and 37.5 times [4]. - A mid-year dividend of 1.50 yuan per 10 shares is planned, totaling an estimated cash dividend payout of 24.72 million yuan, reflecting the company's focus on shareholder returns [4].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - In the first half of 2025, the company experienced significant revenue growth in transportation and established an office in Linzhi, Tibet, in response to national hydropower projects [6] - The company has seen continuous growth in downstream demand across various sectors, including hydropower, nuclear power, and transportation, with a notable increase in traffic fixed asset investment [6][10] - The company is focusing on innovation, having obtained multiple patents and certifications for its G Cloud platform [6] Financial Performance - In H1 2025, the company achieved revenue of 168 million yuan (up 13% year-on-year) and a net profit of 32.34 million yuan (up 14% year-on-year) [10] - The company forecasts net profits of 92 million yuan, 111 million yuan, and 130 million yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 53.0, 43.7, and 37.5 [7][9] - The company plans to distribute a cash dividend of 1.50 yuan per 10 shares, totaling approximately 24.72 million yuan, reflecting its commitment to shareholder returns [7] Market and Industry Trends - The company is well-positioned in the engineering safety monitoring sector, benefiting from ongoing projects like the Yarlung Zangbo River hydropower station [7] - The demand for hydropower, nuclear power, and water conservancy projects continues to grow, with the company actively participating in major national infrastructure projects [6][10]