Core Viewpoint - The company emphasizes its commitment to deep-sea technology and innovation, particularly in underwater acoustic technology, as a key area for future growth and development [1][2][4]. Group 1: Company Overview - The company held its Q3 2025 performance briefing on November 20, 2025, to enhance investor understanding and confidence [1]. - The company is focused on maintaining its core responsibilities in deep-sea operations, smart equipment, and unmanned platforms, while increasing innovation investments [2][5]. Group 2: Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 1.925 billion yuan, a year-on-year increase of 2.8%, and a net profit of 154 million yuan, up 3.43% [10]. - The company has a high accounts receivable of 4.085 billion yuan, which poses a risk but is considered manageable due to the quality of its clients [3][10]. Group 3: Market Strategy - The company is actively engaging in market communication through various investor outreach activities to enhance transparency and trust [3]. - The company plans to continue its mid-term dividend policy, having distributed a total of 1.11 billion yuan in cash dividends since its restructuring in 2017, with a dividend payout ratio exceeding 30% annually [8]. Group 4: Technological Innovation - The company invests 10% of its revenue annually in innovation, holding 1,668 intellectual property rights, including patents and software copyrights [4]. - The company is focused on developing new technologies, including distributed acoustic sensing, to enhance its capabilities in underwater observation [4][5]. Group 5: Competitive Position - The company, particularly through its subsidiary Zhongyuan Electronics, is recognized as a leading entity in underwater acoustic countermeasures, leveraging its extensive research and development capabilities [6][7]. - The company has established significant competitive advantages through long-term research, collaboration, and a deep understanding of customer needs [6].

Core Viewpoint - The report highlights that Diweier's Q2 2025 net profit increased by 12% year-on-year, indicating a continuous recovery in profitability, despite a 7% decline in net profit for the first half of the year due to intensified competition in the wellhead market [1][2]. Financial Performance - In H1 2025, the company achieved total revenue of 560 million yuan, remaining flat year-on-year, while the net profit attributable to shareholders was 52 million yuan, a 7% decrease. The non-recurring net profit was 50 million yuan, showing a slight increase of 0.2% year-on-year [2]. - For Q2 2025, the company reported total revenue of 290 million yuan, a 5.5% increase year-on-year, with a net profit of 30 million yuan, up 12% year-on-year. The non-recurring net profit for Q2 was also 30 million yuan, reflecting a 22% increase year-on-year [2]. Profitability Metrics - The gross profit margin for H1 2025 was 20.2%, an increase of 0.2 percentage points year-on-year, while the net profit margin was 9.2%, a decrease of 0.7 percentage points year-on-year. In Q2 2025, the gross profit margin improved to 21.4%, up 0.8 percentage points year-on-year, and the net profit margin rose to 10.5%, an increase of 0.6 percentage points year-on-year [3]. - The company's operating expenses for H1 2025 were 11.0% of revenue, an increase of 3.0 percentage points year-on-year, with specific expense rates for sales, management, R&D, and finance being 1.7%, 5.6%, 3.4%, and 0.3%, respectively [3]. Future Outlook - The company is expected to see continued revenue growth driven by deep-sea orders, which are currently on the rise but have longer delivery times. The overall trend of increasing domestic deep-sea technology initiatives and global offshore oil and gas capital expenditures supports this outlook [4]. - The company has completed trial production for its key components manufacturing project and received initial orders, which may enhance its competitiveness in the oil and gas equipment sector and open up growth opportunities in automotive and specialized industries [4]. Earnings Forecast - The profit forecasts for 2025-2027 have been adjusted to 138 million yuan (previously 140 million), 203 million yuan (previously 205 million), and 261 million yuan (previously 263 million), with corresponding price-to-earnings ratios of 47x, 32x, and 25x, respectively [4].

Investment Rating - The investment rating for the company is "Add" (maintained) [1] Core Views - In Q2 2025, the company's performance showed signs of recovery with a 12% year-on-year increase in net profit attributable to shareholders, despite a 7% decline in total revenue for the first half of the year [2][4] - The company is expected to benefit from the growth in deep-sea orders and the successful implementation of multi-directional forging projects, which will enhance its competitiveness in the oil and gas equipment sector [4] Financial Performance Summary - For the first half of 2025, total revenue was approximately 560 million yuan, showing a year-on-year stability, while net profit attributable to shareholders was 52 million yuan, down 7% year-on-year [2] - In Q2 2025, total revenue reached 290 million yuan, a 5.5% increase year-on-year, with net profit attributable to shareholders at 30 million yuan, reflecting a 12% year-on-year growth [2] - The gross profit margin for Q2 2025 improved to 21.4%, up 0.8 percentage points year-on-year, while the net profit margin increased to 10.5%, up 0.6 percentage points year-on-year [3] Future Outlook - The company anticipates continued revenue growth driven by the increasing trend of deep-sea orders, although the realization of these orders may take longer due to extended delivery times [4] - The completion of the precision manufacturing project for key components in oil and gas equipment is expected to enhance the company's market position and open up new growth opportunities in automotive and specialized industries [4]