Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's Q2 performance in the lithium business faced pressure, while the civil explosives segment showed stable profitability [1] - The report anticipates a recovery in lithium prices in Q3, which may help the company return to profitability [8] - The company is expected to significantly increase its resource self-sufficiency rate to over 40% in 2025, driven by stable production from its African mines [8] - The civil explosives business is projected to grow by 10% in 2025, with strong performance in exports [8] - The report has adjusted the profit forecast for 2025-2027, now expecting net profits of 5.3 billion, 7.9 billion, and 12.6 billion respectively, reflecting a year-on-year growth of 107%, 48%, and 61% [8] Financial Performance Summary - For H1 2025, the company reported total revenue of 34.2 billion, a decrease of 13% year-on-year, with a net profit of 1.4 billion, an increase of 32.9% year-on-year [8] - The gross margin for H1 2025 was 16.9%, up 2.6 percentage points year-on-year, while the net profit margin was 4%, up 1.4 percentage points year-on-year [8] - The report projects total revenue for 2025 to be 8.334 billion, with a year-on-year growth of 8.01% [9] - The company’s earnings per share (EPS) for 2025 is estimated at 0.46 yuan, with a price-to-earnings (P/E) ratio of 30.66 [9]