Investment Rating - The report maintains a rating of "Accumulate" for the company [6][3]. Core Views - The company achieved a revenue of 5.73 billion (up 19.6% year-on-year) and a net profit attributable to shareholders of 290 million (up 10.0% year-on-year) in the first half of 2025, indicating steady growth and a strong foundation for achieving annual targets [1][6]. - The gross margin for the first half of 2025 was 9.75% (up 0.53 percentage points year-on-year), attributed to improvements in automation and flexibility in key processes [2][3]. - The company is actively expanding its military trade and focusing on unmanned equipment, with new orders in various fields, including maintenance and training simulators [2][3]. Financial Summary - For 2025, the company is projected to achieve revenues of 11.49 billion, 13.12 billion, and 14.81 billion for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 17%, 14%, and 13% [3][4]. - The net profit attributable to shareholders is expected to reach 750 million, 950 million, and 1.20 billion for the same years, with growth rates of 50%, 27%, and 27% respectively [3][4]. - The earnings per share (EPS) is forecasted to be 0.44, 0.56, and 0.71 for 2025, 2026, and 2027 respectively [3][4].

Core Insights - Military ETF (512660) has seen a net inflow of over 500 million yuan in the last five days and over 1.1 billion yuan in the last ten days, indicating strong capital interest in the military sector [1] - The recent military parade showcased new equipment such as unmanned clusters and hypersonic weapons, representing a revolution in "algorithm-defined equipment" that disrupts traditional warfare rules [1] - The explosive growth of intelligent and unmanned equipment is driven by the integration of data, algorithms, and computing power, leading to a significant reduction in the effectiveness of traditional mechanical warfare [1] Industry Analysis - The military ETF covers the entire industrial chain of land, sea, air, and space, providing good elasticity and defensive attributes, making it an important tool for capturing industry allocation opportunities [2] - The ETF tracks the CSI Military Index, which is compiled by the China Securities Index Company, selecting representative listed companies in the defense and military industry from the Shanghai and Shenzhen markets [2] - The index reflects the overall performance of listed companies in the military industry, covering multiple sub-sectors with high industry concentration and distinct military characteristics [2]