Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [6][4]. Core Views - The company reported a significant increase in Q2 performance, with a revenue growth of over 150% and a high dividend payout, showcasing its investment value [1]. - The engineering contracting business is experiencing rapid growth, with substantial contributions from new projects expected to enhance future performance [2]. - The company's profitability has improved, with better cost control and a net profit margin increase [3]. - Long-term growth prospects remain strong, supported by a robust order backlog and new project contributions [4]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 1.249 billion yuan, a year-on-year increase of 21.81%, and a net profit of 120 million yuan, up 42.54% [1]. - Q2 alone saw revenues of 701 million yuan, reflecting a 38.48% increase year-on-year, and a net profit of 69 million yuan, which is a remarkable 156.22% increase [1]. - The company maintained a cash dividend payout ratio of around 100%, with a TTM dividend yield of 4.43% as of August 23 [1]. Business Segments - The engineering segment reported revenues of 409 million yuan and 46 million yuan from contracting and design services, respectively, with year-on-year growth of 483.46% and 89.67% [2]. - In the chemical segment, revenues from various products showed mixed results, with a decline in some areas but an increase in profit margins due to rising prices of certain chemicals [2]. - New business initiatives, particularly in cellulose and its derivatives, generated 9.654 million yuan in revenue, indicating a 47.73% increase year-on-year, with potential for future growth [2]. Profitability and Cost Control - The overall gross margin improved to 19.9%, a year-on-year increase of 0.89 percentage points, while the expense ratio decreased to 10.11%, down 1.55 percentage points [3]. - The net profit margin reached 9.51%, reflecting a 1.39 percentage point increase year-on-year [3]. - Cash flow from operations showed a net inflow of 22 million yuan, although it was lower than the previous year due to increased bank acceptance bill settlements [3]. Long-term Growth Potential - The company has a strong order backlog, and new projects are expected to contribute positively to future earnings [4]. - Adjusted profit forecasts for 2025-2027 are 330 million, 430 million, and 550 million yuan, respectively, with corresponding P/E ratios of 17.6, 13.7, and 10.7 [4].