Investment Rating - The report maintains a "Buy" rating for the company [2][9] Core Insights - The company reported a strong Q2 performance with a 37% year-on-year increase in net profit, driven by demand from data centers [5][6] - The company is positioned as a leader in the precision components segment for refrigeration compressor castings, with products being widely adopted in AI computing and data center temperature control systems [6] - The company is expanding its overseas operations, with a new factory in Mexico to meet North American demand and a marketing agency established in Japan [7] Financial Performance - For H1 2025, the company achieved revenue of 587 million yuan, a 1.53% increase year-on-year, and a net profit of 109 million yuan, up 11.66% [5] - The revenue breakdown for H1 2025 shows compressor components at 320 million yuan (down 6.4%), engineering machinery components at 206 million yuan (up 21.5%), and other components at 60 million yuan (down 8.8%) [6] - The gross margin improved by 1.67 percentage points to 36.84%, attributed to an increase in overseas revenue [6] Future Projections - Revenue forecasts for 2025-2027 are 1.232 billion yuan, 1.503 billion yuan, and 1.771 billion yuan, with year-on-year growth rates of 12.18%, 21.98%, and 17.81% respectively [8] - Projected net profits for the same period are 228 million yuan, 288 million yuan, and 354 million yuan, with growth rates of 21.38%, 26.76%, and 22.88% respectively [8]