Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 143.60, up from the previous RMB 132.00, reflecting an increase in the comparable company's forecasted PE ratio [6][5]. Core Views - The company reported a year-on-year revenue growth of 3.94% for H1 2025, reaching RMB 1.067 billion, with a net profit of RMB 335 million, up 8.82% year-on-year. Q2 revenue showed a significant increase of 9.32% year-on-year and 21.52% quarter-on-quarter, indicating a positive trend in the company's performance [1][2]. - The domestic market demand is recovering, with high-end products such as C-arms and dynamic detectors performing exceptionally well. New core components and solutions have seen over 50% growth year-on-year [2][3]. - The company’s gross margin for H1 2025 was 52.97%, with a net margin of 30.47%. The slight decline in gross margin is attributed to increased depreciation from fixed asset growth, while the net margin improved due to reduced fair value losses [3][4]. Summary by Sections Financial Performance - H1 2025 revenue was RMB 1.067 billion, with a net profit of RMB 335 million. Q2 revenue was RMB 585 million, with a net profit of RMB 191 million, showing strong growth compared to Q1 [1][2]. - The company’s gross margin was 52.97%, and net margin was 30.47%, with stable expense ratios across various categories [3]. Product Development and Market Expansion - The company is investing RMB 18 billion in the silicon-based OLED microdisplay backplane production project, aiming to increase capacity to 5,000 units per month. The CT tube team has extensive experience and is set to begin small-scale production in September 2025 [4][5]. - High-end products such as C-arms and dynamic detectors have shown strong performance, with significant sales growth in new core components and solutions [2][3]. Profit Forecast and Valuation - The company’s projected net profits for 2025-2027 are RMB 590 million, RMB 850 million, and RMB 1.1 billion, respectively, with corresponding PE ratios of 37, 25, and 20 times. The target price has been adjusted to RMB 143.60 based on the updated PE valuation [5][6].

Investment Rating - The report assigns a "Buy-A" rating for the company, indicating a positive outlook for its stock performance in the coming months [4]. Core Insights - The company reported a revenue of 1.067 billion yuan for the first half of 2025, reflecting a year-on-year growth of 3.94%. The net profit attributable to shareholders was 335 million yuan, up 8.82% year-on-year [5]. - The company has seen significant growth in its high-end dynamic detector products, with new core components and solutions growing over 50% year-on-year. The domestic medical imaging business is expected to accelerate due to ongoing government procurement projects [6][7]. - The company is actively enhancing its global business presence, achieving foreign revenue of 366 million yuan, a year-on-year increase of 14.56% [7]. Financial Performance - For the fiscal year 2025, the company is projected to achieve a net profit of 586 million yuan, with a year-on-year growth of 26.0%. The earnings per share (EPS) is expected to be 2.93 yuan [11][9]. - The company's revenue is forecasted to grow from 1.864 billion yuan in 2023 to 3.406 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 21.7% [11][13]. - The gross margin is expected to stabilize around 49.9% to 51.3% over the next few years, indicating a strong profitability outlook [11][12]. Market Position and Strategy - The company is positioned as a leading supplier of digital X-ray core components and comprehensive solutions, benefiting from increased demand in both medical and industrial sectors [9]. - The ongoing development of domestic X-ray tube products aims to reduce reliance on imports, with several new models entering mass production [7]. - The company is expanding its global service platform, establishing sales and customer service teams in key international markets, which is expected to enhance its competitive edge [7].