Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [3]. Core Views - The company experienced pressure on profits in the first half of 2025, with a year-on-year decrease in net profit by 26.57% to 473 million yuan, despite an 8.95% increase in revenue to 4.432 billion yuan [1][2]. - The delay in the delivery of submarine cable orders due to slow domestic offshore wind construction has impacted profitability, but the company has a strong order backlog that supports future growth [2][3]. - The second half of 2025 is expected to see accelerated delivery of submarine cable orders, which should lead to revenue growth [3]. Summary by Sections Financial Performance - In 2025H1, the company achieved revenue of 4.432 billion yuan, a year-on-year increase of 8.95%, while net profit was 473 million yuan, down 26.57% [1]. - The gross margin decreased by 4.17 percentage points to 18.26%, and the net margin fell by 5.16 percentage points to 10.67% [1]. Business Segments - The submarine and high-voltage cable business generated revenue of 1.957 billion yuan, up 8.32% year-on-year, with a gross margin of 25.02% [2]. - The marine equipment and engineering operation business saw a significant decline in revenue, down 44.61% to 275 million yuan [2]. - The land cable business performed well, with revenue of 2.196 billion yuan, an increase of 24.85% year-on-year, but with a lower gross margin of 10.78% [2]. Order Backlog and Future Outlook - As of August 12, 2025, the company had an order backlog of 19.6 billion yuan, with 11 billion yuan in submarine and high-voltage cables, 5 billion yuan in power engineering and equipment cables, and 3.6 billion yuan in marine equipment and engineering operations [2]. - The report highlights several significant submarine cable projects expected to contribute to revenue in the second half of 2025, totaling approximately 68.71 billion yuan [3]. Profit Forecast - The report maintains profit forecasts for 2025-2027, expecting net profits of 1.668 billion yuan, 2.178 billion yuan, and 2.655 billion yuan respectively, with corresponding P/E ratios of 23, 17, and 14 [3][5].