Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company is experiencing a temporary decline in performance due to fluctuations in industry customer demand, leading to lower-than-expected order deliveries. The absolute amount of R&D expenses remains high, and prudent impairment loss provisions have resulted in a net loss [2][6]. - In the first half of 2025, the company achieved operating revenue of 631 million yuan, a year-on-year decrease of 47.49%, and a net profit loss attributable to the parent company of 114 million yuan, a year-on-year decrease of 270.67% [6][13]. - The company continues to invest in R&D to maintain its technological leadership, with R&D expenses in the first half of 2025 amounting to 212 million yuan, a decrease of 8.31% year-on-year, but the R&D expense ratio reached a historical high of 33.58% due to declining revenue [13]. Summary by Sections Financial Performance - The company reported a significant decline in revenue and net profit in the first half of 2025, with Q2 revenue at 415 million yuan, down 41.73% year-on-year, and a net profit loss of 60 million yuan, down 217.94% year-on-year [6][13]. - The company’s R&D expenses are projected to be 454 million yuan in 2025, with a decreasing trend in the following years, while the net profit is expected to recover to 88 million yuan in 2026 and 198 million yuan in 2027 [18]. R&D and Innovation - The company emphasizes innovation as a top priority, focusing on the development of basic product components and key technologies. It has made significant progress in military communication projects, including winning bids for helicopter and swarm projects, marking a breakthrough in swarm data link applications [13]. - The company is also advancing in ground communication projects, collaborating with domestic universities to enhance anti-jamming technology, which is crucial for communication security in complex electromagnetic environments [13]. Earnings Forecast and Valuation - The company is expected to achieve net profits of 88 million yuan, 198 million yuan, and 314 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 191, 85, and 53 times [13].