Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][21] Core Views - The company achieved steady revenue and profit growth in the first half of 2025, with revenue reaching 9.335 billion yuan, up 17.50% year-on-year, and net profit attributable to shareholders of 296 million yuan, up 7.46% year-on-year [1][7] - The electromagnetic wire business showed significant performance, with revenue of 3.746 billion yuan, a year-on-year increase of 28%, and a net profit of 196 million yuan, up 70% year-on-year [2][20] - New application areas are expanding rapidly, with revenue from clean energy applications increasing by 54% year-on-year, and smart grid applications up by 19% year-on-year [19][21] Summary by Sections Financial Performance - In Q2, the company reported revenue of 5.238 billion yuan, a year-on-year increase of 18.45% and a quarter-on-quarter increase of 27.87%, with a net profit of 160 million yuan, up 12.78% year-on-year [19][15] - The overall gross profit margin for the first half was 10.32%, a decrease of 0.67 percentage points year-on-year, while the net profit margin was 3.61%, down 0.25 percentage points year-on-year [1][7] Business Segments - The wire and cable segment generated revenue of 5.538 billion yuan, an 11% increase year-on-year, with a gross margin of 10.17%, down 1.48 percentage points [20] - The company successfully expanded its market in the power grid sector, achieving a 167% year-on-year increase in bid amounts [20][21] Export and International Expansion - Direct export revenue reached 262 million yuan, a 38% increase year-on-year, with a gross margin of 16.22%, which is approximately 6 percentage points higher than domestic sales [21] - The company is progressing with its overseas production capacity in the Czech Republic, aiming to start trial production by the end of the year [21][20] Future Outlook - The profit forecast for 2025-2027 has been adjusted downwards due to the demand and pricing situation in the real estate and construction sectors, with expected net profits of 674 million yuan, 759 million yuan, and 884 million yuan respectively [3][21] - The current stock price corresponds to a price-to-earnings ratio of 11, 10, and 8 times for the years 2025, 2026, and 2027 respectively [3][21]