Core Viewpoint - The company reported a steady performance in Q2 2025 with revenue of 3.26 billion and net profit growth, indicating effective cost control and a positive outlook for future growth opportunities [1][2][4]. Financial Performance - Q2 2025 revenue reached 3.26 billion, a year-over-year increase of 0.5% and a quarter-over-quarter increase of 14% [1]. - Net profit attributable to shareholders was 1.53 billion, reflecting a year-over-year growth of 5% and a quarter-over-quarter growth of 35% [1]. - Non-deductible net profit was 1.48 billion, showing a year-over-year increase of 18% and a quarter-over-quarter increase of 49% [1]. Revenue Structure - In H1 2025, revenue from elevator media was 5.632 billion, a year-over-year increase of 2%, accounting for 92% of total revenue, while cinema revenue was 470 million, a year-over-year increase of 3%, accounting for 8% [3]. - The top three industries contributing to revenue were daily necessities (3.4 billion, YOY -11%, 56% share), internet (985 million, YOY +89%, 16% share), and automotive (410 million, YOY -14%, 7% share) [3]. Dividend Policy - In H1 2025, the total cash dividend amounted to 1.44 billion, corresponding to a dividend payout ratio of 54% based on net profit attributable to shareholders and 59% based on non-deductible net profit [4]. - The company's stable performance and high dividend payout provide a safety net, with potential growth opportunities from new integrations and market expansions [4]. Earnings Forecast - The company adjusted its revenue forecast for 2025-2027 to 13.3 billion, 16 billion, and 18.2 billion, representing year-over-year growth of 8%, 20%, and 14% respectively [4]. - The forecast for net profit attributable to shareholders is set at 5.7 billion, 7.1 billion, and 8 billion for the same period, with year-over-year growth of 11%, 24%, and 13% respectively [4]. - The target price for 2026 is set at 9.85, with a recommended rating based on historical valuation and comparable company analysis [4].

Investment Rating - The report maintains a "Recommendation" rating for the company, with a target price of 9.85 yuan [2][8]. Core Views - The company's performance in Q2 2025 met expectations, with revenue of 3.26 billion yuan, a year-over-year increase of 0.5% and a quarter-over-quarter increase of 14%. The net profit attributable to shareholders was 1.53 billion yuan, up 5% year-over-year and 35% quarter-over-quarter [2][8]. - The report highlights the company's strong cash dividend policy, with a cash dividend of 1.44 billion yuan in H1 2025, corresponding to a dividend payout ratio of 54% of net profit attributable to shareholders [8]. - The company is expected to benefit from the integration of new initiatives and growth options, with a stable advertising client base in the consumer sector and potential profit enhancement from new projects [8]. Financial Summary - Total revenue is projected to grow from 12.26 billion yuan in 2024 to 18.21 billion yuan in 2027, with year-over-year growth rates of 3.0%, 8.2%, 20.2%, and 14.1% respectively [4][9]. - Net profit attributable to shareholders is expected to increase from 5.16 billion yuan in 2024 to 8.05 billion yuan in 2027, with corresponding growth rates of 6.8%, 10.6%, 24.4%, and 13.4% [4][9]. - The report anticipates earnings per share (EPS) to rise from 0.36 yuan in 2024 to 0.56 yuan in 2027, reflecting a positive growth trajectory [4][9]. Revenue Structure - In H1 2025, the revenue structure indicates that elevator media generated 5.632 billion yuan, a year-over-year increase of 2%, accounting for 92% of total revenue, while cinema revenue was 470 million yuan, up 3% year-over-year, making up 8% of total revenue [8]. - The report notes a slight decline in consumer advertising, while the internet sector has seen rapid growth, with internet advertising revenue increasing by 89% year-over-year [8]. Market Position - The company has a total of 2.97 million advertising points, with a year-over-year decrease of 3.7%. The number of elevator televisions increased by 5.5% year-over-year, while elevator posters saw a decline of 10% [8]. - The report emphasizes the company's strong market position and operational resilience, suggesting that it is well-positioned to navigate market challenges and capitalize on growth opportunities [8].